Net Loss of $13.5 Million on 38% Revenue Decline
                             Gross Margin of 12.3%

ATLANTA, Nov. 5, 2009 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the third quarter ended October 3, 2009.

The Company incurred a net loss of $13.5 million, or $0.44 per diluted share for the third quarter of 2009, compared with a net loss of $2.6 million, or $0.08 per diluted share, in the year-ago period. Revenues decreased 38% to $449 million from $727 million for the same period a year ago. Overall unit volume fell 32%. The sales decline was mainly due to lower unit volumes in both structural and specialty products driven predominately by a 31% decline in housing starts relative to year-ago levels and lower average structural product prices.

Gross profit for the third quarter totaled $55.3 million, down 33.6% from $83.2 million in the prior-year period, reflecting lower unit volume associated with the decline in housing starts and lower underlying product prices. Gross margins of 12.3% increased from the 11.5% margins generated in the year earlier period. Total operating expenses decreased $19.8 million, or 25% from the same period a year ago, as the Company aligned its cost structure to the current operating environment. Reported operating loss for the quarter was $3.6 million, compared with operating income of $4.5 million a year ago.

"Although demand remains near all time lows, I believe that 2009 represents the bottom of this prolonged decline. Long-term demand for housing remains favorable and we are now focused on increasing our share of the market," said BlueLinx President and CEO George Judd. "In spite of the weak structural product market, the Company produced gross margins of 12.3% which is significantly higher than historical margins."

For the nine months ended October 3, 2009, net loss totaled $73.5 million, or $2.37 per diluted share, on revenues of $1.28 billion, compared with a net loss of $6.6 million, or $0.21 per diluted share, on revenues of $2.28 billion a year ago. The decline in income and revenue was largely due to the 43% decline in housing construction activity relative to the prior period, as well as various charges taken during the nine month period including a tax valuation allowance adjustment of $45.7 million, facility consolidation and severance related costs, and interest charges associated with our ineffective interest rate swap. These charges are quantified below.

Gross profit for the nine months ended October 3, 2009 totaled $147.9 million and gross margin was 11.6%, compared with $268.5 million and 11.8%, respectively, a year earlier. Operating expenses declined $91.3 million, or 36.4%, from $250.7 million a year ago.

The Company's operating results for the third quarter of 2009 and the year-to-date period, adjusted for selected items, are shown in the following table (see accompanying financial schedules for full financial details and reconciliations of non-GAAP financial measures to their GAAP equivalents):

 in millions, except per share amounts        Quarter     Nine months
 (unaudited)                                   Ended         Ended
                                             October 3,    October 3,
                                                2009         2009
 ----------------------------------------- ------------- -------------
 Pretax loss                                     ($13.3)       ($45.3)
 Gain on early cancellation of Master
  Supply Agreement with G-P                        (0.1)        (17.6)
 Gain on sale of certain surplus properties        (0.2)         (4.4)
 Charges associated with ineffective
  interest rate swap                                1.4           7.3
 Facility consolidations & severance
  related costs                                      --           2.2
 Write-off of debt issuance costs                    --           1.4
                                           ------------- -------------

 Adjusted pretax loss                             (12.2)        (56.4)
 Adjusted benefit from income taxes                (5.5)        (23.5)

                                           ------------- -------------

 Adjusted net loss                                ($6.7)       ($32.9)
                                           ============= =============

 Diluted weighted average shares                   30.9          31.0
                                           ============= =============

 Adjusted diluted net loss per share
  applicable to common shares                    ($0.22)       ($1.06)
                                           ============= =============

The above table reflects the following events which occurred during the third quarter and the year-to-date period: (i) the Company reached an agreement with Georgia-Pacific LLC ("G-P") to cancel our Master Supply Agreement one year prior to the original expiration date, with G-P agreeing to make four quarterly payments to BlueLinx starting May 1, 2009; (ii) the Company sold certain excess property during the quarter and in the year-to-date period; (iii) the Company reduced its borrowings during the third quarter under its revolving credit facility by $25 million resulting in a non-cash interest charge related to its ineffective interest rate swap. In the year-to-date period, the Company reduced its borrowings under its revolving credit facility by $100 million resulting in a non-cash interest charge; (iv) the Company recorded other restructuring costs related to facility consolidations and severance expense; and (v) the Company wrote-off a portion of its debt issuance costs related to the Company's decision to lower its revolving credit facility from $800 million to $500 million which resulted in a non-cash charge. The tax provision reflected in the table is based on the Company's effective tax rate excluding the valuation allowance recorded against its deferred tax asset of $5.1 million and $45.7 million for the third quarter and year-to-date period, respectively.

Conference Call

BlueLinx will host a conference call today at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation. Investors can listen to the conference call and view the accompanying slide presentation by going to the BlueLinx web site, www.BlueLinxCo.com, and selecting the conference link on the Investor Relations page. Investors will be able to access an archived recording of the conference call for one week by calling 706-645-9291, Conference ID# 38607611. The recording will be available two hours after the conference call has concluded. Investors also can access a recording of this call on the BlueLinx web site, where a replay of the webcast will be available for 90 days.

Use of Non-GAAP Measures

BlueLinx reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company also believes that presentation of certain non-GAAP measures, i.e., results excluding certain charges or other nonrecurring events, when appropriate, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, without the impact of significant special items, and thereby enhances the user's overall understanding of the Company's current financial performance relative to past performance and provides a better baseline for modeling future earnings expectations. Any non-GAAP measures used herein are reconciled in the financial tables accompanying this news release. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results.

About BlueLinx Holdings Inc.

Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing approximately 2,000 people, BlueLinx offers greater than 10,000 products from over 750 suppliers to service approximately 11,500 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses. BlueLinx is traded on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its Web site at www.BlueLinxCo.com.

Forward-looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our outlook on the housing industry. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by BlueLinx to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: changes in the supply and/or demand for products that we distribute, especially as a result of conditions in the residential housing market; general economic and business conditions in the United States; the activities of competitors; changes in significant operating expenses; changes in the availability of capital including the availability of residential mortgages; the ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions; adverse weather patterns or conditions; acts of war or terrorist activities; variations in the performance of the financial markets; and other factors described in the "Risk Factors" section in the Company's Annual Report on Form 10-K for the year ended January 3, 2009 and in its periodic reports filed with the Securities and Exchange Commission from time to time. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, changes in expectation or otherwise, except as required by law.

 BlueLinx Holdings Inc.
 Statements of Operations
  in thousands, except per share data

                        Quarters Ended           Nine Months Ended
                   ------------------------- -------------------------
                      Oct. 3,     Sept. 27,     Oct. 3,    Sept. 27,
                       2009         2008         2009         2008
                   ------------ ------------ ------------ ------------
                    (unaudited)  (unaudited)  (unaudited)  (unaudited)

 Net sales         $   449,363  $   726,756  $ 1,280,000  $ 2,278,185
 Cost of sales         394,058      643,507    1,132,119    2,009,698
                   ------------ ------------ ------------ ------------
 Gross profit           55,305       83,249      147,881      268,487
                   ------------ ------------ ------------ ------------
 Operating 
  expenses:
    Selling,
     general, and
     administrative     55,024       73,793      163,744      235,655
    Net gain from
     terminating
     the Georgia-
     Pacific supply
     agreement              --           --      (17,554)          --
    Depreciation
     and
     amortization        3,882        4,940       13,153       15,011
                   ------------ ------------ ------------ ------------
 Total operating
  expenses              58,906       78,733      159,343      250,666
                   ------------ ------------ ------------ ------------

 Operating (loss)
  income                (3,601)       4,516      (11,462)      17,821
 Non-operating
  expenses:
    Interest
     expense             7,987        8,791       24,610       27,530
    Charges
     associated
     with
     ineffective
     interest rate
     swap                1,431           --        7,341           --
    Write-off of
     debt issuance
     costs                  --           --        1,407           --
    Other expense,
     net                   324           65          482          385
                   ------------ ------------ ------------ ------------

 Loss before
  provision for
  (benefit from)
  income taxes         (13,343)      (4,340)     (45,302)     (10,094)
 Provision for
  (benefit from)
  income taxes             120       (1,746)      28,186       (3,508)
                   ------------ ------------ ------------ ------------
 Net loss          $   (13,463) $    (2,594) $   (73,488) $    (6,586)
                   ------------ ------------ ------------ ------------

 Basic weighted
  average number of
  common shares
  outstanding           30,948       31,150       31,019       31,053
                   ============ ============ ============ ============
 Basic net loss per
  share applicable
  to common shares $     (0.44) $     (0.08) $     (2.37) $     (0.21)
                   ============ ============ ============ ============
 Diluted weighted
  average number of
  common shares
  outstanding           30,948       31,150       31,019       31,053
                   ============ ============ ============ ============
 Diluted net loss
  per share
  applicable to
  common shares    $     (0.44) $     (0.08) $     (2.37) $     (0.21)
                   ============ ============ ============ ============


 BlueLinx Holdings Inc.
 Balance Sheets
  in thousands

                                             October 3,    January 3,
                                                2009          2009
                                           ------------- -------------
                                            (unaudited)

 Assets:
 Current assets:
    Cash and cash equivalents              $     25,498  $    150,353
    Receivables, net                            168,656       130,653
    Inventories, net                            173,123       189,482
    Deferred income tax assets                      578        11,868
    Other current assets                         34,356        37,351
                                           ------------- -------------
 Total current assets                           402,211       519,707
                                           ------------- -------------

 Property, plant, and equipment:
    Land and improvements                        52,719        53,426
    Buildings                                    95,968        96,159
    Machinery and equipment                      68,906        70,491
    Construction in progress                      1,150         2,035
                                           ------------- -------------
 Property, plant, and equipment, at cost        218,743       222,111
 Accumulated depreciation                       (78,866)      (69,336)
                                           ------------- -------------
 Property, plant, and equipment, net            139,877       152,775
 Non-current deferred income tax assets              --        17,468
 Other non-current assets                        42,437        42,457
                                           ------------- -------------
 Total assets                              $    584,525  $    732,407
                                           ============= =============

 Liabilities:
 Current liabilities:
    Accounts payable                       $    108,537  $     78,367
    Bank overdrafts                              20,016        24,715
    Accrued compensation                          5,245        11,552
    Current maturities of long-term debt             --        60,000
    Other current liabilities                    26,696        24,546
                                           ------------- -------------
 Total current liabilities                      160,494       199,180
                                           ------------- -------------
 Noncurrent liabilities:
    Long-term debt                              341,669       384,870
    Non-current deferred income tax
     liabilities                                    578            --
    Other non-current liabilities                42,755        45,505
                                           ------------- -------------
 Total liabilities                              545,496       629,555
                                           ------------- -------------

 Shareholders' Equity:
    Common stock                                    323           323
    Additional paid in capital                  144,462       144,148
    Accumulated other comprehensive loss         (7,569)      (16,920)
    Accumulated deficit                         (98,187)      (24,699)
                                           ------------- -------------
 Total shareholders' equity                      39,029       102,852
                                           ------------- -------------
                                           ------------- -------------
 Total liabilities and shareholders'
  equity                                   $    584,525  $    732,407
                                           ============= =============


 BlueLinx Holdings Inc.
 Statements of Cash Flows
  in thousands

                                                Nine Months Ended
                                           ---------------------------
                                             October 3,  September 27,
                                                2009         2008
                                           ------------- -------------
                                            (unaudited)   (unaudited)

 Cash flows from operating activities:
 Net loss                                  $    (73,488) $     (6,586)
 Adjustments to reconcile net loss to cash
  (used in) provided by operations:
    Depreciation and amortization                13,153        15,011
    Amortization of debt issuance costs           1,843         1,823
    Net gain from terminating the Georgia-
     Pacific supply agreement                   (17,554)           --
    Payments from terminating the Georgia-
     Pacific supply agreement                     9,412            --
    Gain from sale of properties                 (4,406)           --
    Prepayment fees associated with sale of
     facility                                       616            --
    Charges associated with ineffective
     interest rate swap                           7,341            --
    Write-off of debt issuance  costs             1,407            --
    Non-cash vacant property charges                457         1,640
    Deferred income tax provision (benefit)      27,228        (3,506)
    Share-based compensation expense              2,170         2,163
    Excess tax benefits from share-based
     compensation arrangements                       --           (76)
    Decrease in restricted cash                   3,380         5,970
    Changes in assets and liabilities:
      Receivables                               (38,003)       18,698
      Inventories                                16,359        74,910
      Accounts payable                           30,170       (35,875)
      Changes in other working capital            6,611        28,895
      Other                                        (192)        1,968
                                           ------------- -------------
 Net cash (used in) provided by operating
  activities                                    (13,496)      105,035
                                           ------------- -------------

 Cash flows from investing activities:
 Property, plant, and equipment investments        (952)       (2,614)
 Proceeds from disposition of assets              8,454           848
                                           ------------- -------------
 Net cash provided by (used in) investing
  activities                                      7,502        (1,766)
                                           ------------- -------------

 Cash flows from financing activities:
 Repurchase of common stock                      (1,862)           --
 Proceeds from stock options exercised               --           434
 Excess tax benefits from share-based
  compensation arrangements                          --            76
 Decrease in revolving credit facility         (100,000)      (27,535)
 Payment of principal on mortgage                (3,201)           --
 Prepayment fees associated with sale of
  facility                                         (616)           --
 Decrease in bank overdrafts                     (4,699)      (15,450)
 Increase in restricted cash related to the
  mortgage                                       (8,442)       (5,461)
 Other                                              (41)            6
                                           ------------- -------------
 Net cash used in financing activities         (118,861)      (47,930)
                                           ------------- -------------

 (Decrease) increase in cash                   (124,855)       55,339
 Balance, beginning of period                   150,353        15,759
                                           ------------- -------------
 Balance, end of period                    $     25,498  $     71,098
                                           ============= =============


 BlueLinx Holdings Inc.
 Reconciliation of GAAP Net Loss to Adjusted Net Loss
  in thousands

                                              Quarter     Nine Months
                                               Ended         Ended
                                             October 3,    October 3,
 GAAP Reconciliation                            2009         2009
 ----------------------------------------- ------------- -------------
                                            (unaudited)   (unaudited)

 GAAP net loss                             $    (13,463) $    (73,488)
 Gain on early cancellation of Master
  Supply Agreement with G-P                        (144)      (17,554)
 Gain from sale of certain surplus
  properties                                       (169)       (4,406)
 Facility consolidations & severance
  related costs                                      --         2,153
 Charges associated with ineffective
  interest rate swap                              1,431         7,341
 Write-off of debt issuance costs                    --         1,407
 Tax effect of selected charges                     509         6,037
 Valuation allowance                              5,150        45,660
                                           ------------- -------------
 Adjusted net loss                         $     (6,686) $    (32,850)
                                           ============= =============

CONTACT:  BlueLinx Holdings Inc.
          Doug Goforth, CFO & Treasurer
            (770) 953-7505
          Investor Relations:
          Russ Zukowski, Vice President Finance
            (770) 953-7620