Simpson Manufacturing Co., Inc.
                     Announces Second Quarter Earnings
 
    PLEASANTON, Calif., July 20 /PRNewswire/ -- Simpson Manufacturing Co.,
Inc. (NYSE: SSD) (the "Company") announced today that its 2000 second quarter
net income increased 12.4% to $11,324,182 on net sales of $97,825,539 as
compared to net income of $10,072,757 on net sales of $83,752,743 for the
second quarter of 1999. Diluted net income per common share was $0.92 for the
second quarter of 2000 as compared to $0.82 for the second quarter of 1999.
For the six months ended June 30, 2000, net income increased 16.2% to
$20,599,946 on sales of $182,441,078, while for the same period in the prior
year the Company had net income of $17,721,159 on sales of $158,414,333.
Diluted net income per common share was $1.67 for the first half of 2000 as
compared to $1.46 for the first half of 1999.
 
    Net sales increased 16.8% in the second quarter of 2000 as compared to the
second quarter of 1999. Most of the sales growth occurred domestically,
particularly in California. International sales also contributed to the
increase, due in large part to the acquisition of Furfix Products Limited
("Furfix") in the third quarter of 1999. Simpson Strong-Tie's second quarter
sales increased 21.5% over the same quarter last year, while Simpson
Dura-Vent's sales decreased 4.4%. Contractor distributors and homecenters were
the fastest growing connector sales channel. The sales increase was broad
based across most of Simpson Strong-Tie's major product lines. Strong-Wall and
Anchor Systems product lines had the highest growth rates in sales. Sales of
Simpson Dura-Vent's Direct-Vent product line increased compared to the
second quarter of 1999, while sales of its other product lines declined. Part
of this decline can be attributed to high demand for wood burning appliances
in 1999 resulting in a spike in sales of chimney products last year.
 
    Income from operations increased 7.0% from $16,622,567 in the
second quarter of 1999 to $17,791,997 in the second quarter of 2000 primarily
as a result of higher sales. However, the increase related to sales was
partially offset by lower gross margins. Gross margins decreased from 41.4% in
the second quarter of 1999 to 40.0% in the second quarter of 2000 primarily
due to higher product costs. These costs were offset somewhat by better
absorption of fixed overhead costs resulting from the increased production.
Selling expenses increased 21.0% from $8,041,724 in the second quarter of 1999
to $9,728,488 in the second quarter of 2000. The increase was primarily due to
higher promotional expenses as well as higher personnel costs, particularly
those associated with the increase in the number of sales and merchandising
personnel. General and administrative expenses increased 16.5% from
$9,999,710 in the second quarter of 1999 to $11,647,056 in the second quarter
of 2000 primarily due to increased cash profit sharing expenses resulting from
higher operating income, and higher personnel and other administrative
overhead costs, including costs associated with the operation of
Keybuilder.com LLC ("Keybuilder.com"), the Company's joint venture with
Keymark Enterprises, Inc., and those associated with Furfix. The effective tax
rate was 41.2% in the second quarter of 2000, an increase from 40.3% in the
second quarter of 1999.
 
    Net sales increased 15.2% in the first half of 2000 as compared to the
first half of 1999. Most of the sales growth occurred domestically,
particularly in California. International sales also contributed to the
increase, due in large part to the acquisition of Furfix in the third quarter
of 1999. Simpson Strong-Tie's first half sales increased 19.0% over the same
period last year, while Simpson Dura-Vent's sales decreased 1.3%. Contractor
distributors were the fastest growing connector sales channel. The sales
increase was broad-based across most of Simpson Strong-Tie's major product
lines. Strong-Wall and Anchor Systems product lines had the highest growth
rates in sales. Sales of Simpson Dura-Vent's Direct-Vent product line
increased compared to the first half of 1999, while sales of its other product
lines declined. Part of this decline can be attributed to high demand for wood
burning appliances in 1999 resulting in a spike in sales of chimney products
last year.
 
    Income from operations increased 11.5% from $29,051,613 in the first half
of 1999 to $32,405,926 in the first half of 2000 primarily as a result of
higher sales. Gross margins increased slightly from 39.8% in the first half of
1999 to 40.0% in the first half of 2000, primarily due to better absorption of
fixed overhead costs as a result of the increased production. However, this
was mostly offset by the increased product costs that occurred in the
second quarter. Selling expenses increased 14.7% from $15,939,530 in the
first half of 1999 to $18,281,610 in the first half of 2000. The increase was
primarily due to higher promotional expenses as well as higher personnel
costs, particularly those associated with the increase in the number of sales
and merchandising personnel. General and administrative expenses increased
23.0% from $18,121,471 in the first half of 1999 to $22,295,382 in the
first half of 2000 primarily due to increased cash profit sharing expenses
resulting from higher operating income, and higher personnel and other
administrative overhead costs, including costs associated with the operation
of Keybuilder.com and with Furfix. The effective tax rate was 40.9% in the
first half of 2000, an increase from 40.2% in the first half of 1999.
 
    In November 1999, the Board of Directors authorized its Chairman, for a
period of one year, to purchase up to $10 million of the Company's common
stock. To date, no such purchases have been made.
 
    Investors, analysts and other interested parities are invited to join the
Company's conference call on July 21, 2000, at 6:00 a.m. Pacific Time. To
participate, callers may dial 800-670-3547. The call will be webcast
simultaneously as well as being available for one month at
http://www.themeetingson.com (reservation #15854205) or through a link on the
Company's website at http://www.simpsonmfg.com.
 
 
    The Company's results of operations for the three and six months ended
June 30, 2000 and 1999, are as follows:
 
                              Three Months                Six Months
                             Ended June 30,             Ended June 30,
                       --------------------------  --------------------------
                               (Unaudited)               (Unaudited)
                           2000          1999          2000          1999
                       ------------  ------------  ------------  ------------
    Net sales          $ 97,825,539  $ 83,752,743  $182,441,078  $158,414,333
    Cost of sales        58,657,998    49,088,742   109,458,160    95,301,719
                       ------------  ------------  ------------  ------------
      Gross profit       39,167,541    34,664,001    72,982,918    63,112,614
                       ------------  ------------  ------------  ------------
 
    Selling expenses      9,728,488     8,041,724    18,281,610    15,939,530
    General and
     administrative
     expenses            11,647,056     9,999,710    22,295,382    18,121,471
                       ------------  ------------  ------------  ------------
 
      Income from
       operations        17,791,997    16,622,567    32,405,926    29,051,613
 
    Interest income,
     net                    623,308       255,190     1,267,183       603,546
                       ------------  ------------  ------------  ------------
      Income before
       taxes             18,415,305    16,877,757    33,673,109    29,655,159
 
    Provision for
     income taxes         7,586,000     6,805,000    13,764,000    11,934,000
    Minority Interest      (494,877)           --      (690,837)           --
                       ------------  ------------  ------------  ------------
      Net income       $ 11,324,182  $ 10,072,757  $ 20,599,946  $ 17,721,159
                       ============  ============  ============  ============
 
    Net income per share:
      Basic                   $0.94         $0.86         $1.71         $1.52
      Diluted                 $0.92         $0.82         $1.67         $1.46
 
    Weighted average
     shares outstanding:
      Basic              12,042,289    11,779,256    12,031,367    11,680,581
      Diluted            12,318,850    12,225,229    12,300,179    12,165,456
 
    Other data:
      Depreciation and
       amortization    $  3,292,087  $  2,622,978  $  6,540,727  $  5,163,600
                       ============  ============  ============  ============
 
 
    The Company's financial position as of June 30, 2000 and 1999, and
December 31, 1999, is as follows:
 
                                         June 30,
                                --------------------------
                                        (Unaudited)         December 31,
                                    2000          1999          1999
                                ------------  ------------  ------------
    Cash and short-term
     investments                $ 52,719,098  $ 37,215,287  $ 54,509,610
    Trade accounts receivable,
     net                          57,796,725    52,597,778    42,420,223
    Inventories                   78,996,134    65,046,804    72,751,245
    Other current assets           7,697,666     6,755,373     6,068,749
                                ------------  ------------  ------------
      Total current assets       197,209,623   161,615,242   175,749,827
 
    Property, plant and
     equipment, net               60,525,647    58,712,214    61,143,524
    Other noncurrent assets       11,990,678     3,664,802    10,360,642
                                ------------  ------------  ------------
      Total assets              $269,725,948  $223,992,258  $247,253,993
                                ============  ============  ============
 
    Trade accounts payable      $ 14,167,384   $16,211,194  $ 12,780,621
    Notes payable and current
     portion of long-term debt       479,854       499,154       349,541
    Other current liabilities     20,081,330    17,711,993    20,563,320
                                ------------  ------------  ------------
      Total current liabilities   34,728,568    34,422,341    33,693,482
 
    Long-term debt                 2,238,300     2,429,526     2,414,562
    Other liabilities                388,465       367,194       556,783
    Minority Interest              1,309,163            --            --
    Stockholders' equity         231,061,452   186,773,197   210,589,166
                                ------------  ------------  ------------
      Total liabilities and
       stockholders' equity     $269,725,948  $223,992,258  $247,253,993
                                ============  ============  ============
 
    Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California,
through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers
and is a leading manufacturer of wood-to-wood, wood-to-concrete and
wood-to-masonry connectors, and through its subsidiary, Simpson Dura-Vent
Company, Inc., designs, engineers and manufactures venting systems for gas and
wood burning appliances. The Company's common stock trades on the
New York Stock Exchange under the symbol "SSD."
 
    For further information, contact Barclay Simpson at 925-738-9032.