PRESS RELEASE January 23, 2003

Simpson Manufacturing Co., Inc.
Announces Fourth Quarter Earnings

DUBLIN, Calif., Jan. 23 /PRNewswire-FirstCall/ -- Simpson Manufacturing Co., Inc. (the "Company") announced today that its 2002 fourth quarter net sales increased 16.2% to $108,659,643 as compared to net sales of $93,535,611 for the fourth quarter of 2001. Net income increased 55.8% to $10,597,463 for the fourth quarter of 2002 as compared to net income of $6,802,404 for the fourth quarter of 2001. Diluted net income per common share was $0.43 for the fourth quarter of 2002 as compared to $0.28 for the fourth quarter of 2001. For the year ended December 31, 2002, net sales increased 11.9% to $465,473,959 as compared to net sales of $415,862,601 for 2001. Net income increased 28.2% to $51,934,147 for 2002 as compared to net income of $40,518,126 for 2001. Diluted net income per common share was $2.09 for 2002 as compared to $1.64 for 2001.

In the fourth quarter of 2002, sales growth occurred throughout North America and Europe. The growth in the United States was strongest in California. Simpson Strong-Tie's fourth quarter sales increased 21.4% over the same quarter last year, while Simpson Dura-Vent's sales decreased 0.9%. Contractor distributors and lumber dealers were the fastest growing Simpson Strong-Tie connector sales channels. The sales increase was broad based across most of Simpson Strong-Tie's major product lines. Simpson Strong-Tie's Strong- Wall and seismic and high wind related products had the highest percentage growth rates in sales. Sales of Simpson Dura-Vent's Direct-Vent products increased compared to the fourth quarter of 2001 while sales of its pellet vent and chimney product lines decreased.

Income from operations increased 66.5% from $10,599,688 in the fourth quarter of 2001 to $17,649,968 in the fourth quarter of 2002 and gross margins increased from 35.0% in the fourth quarter of 2001 to 39.0% in the fourth quarter of 2002. The increase in gross margins was primarily due to lower manufacturing costs. Selling expenses increased 14.3% from $10,854,858 in the fourth quarter of 2001 to $12,408,060 in the fourth quarter of 2002, primarily due to increased sales commissions as a result of sales in excess of goals and to increased spending on advertising and promotions. In addition, travel expenses related to the Simpson Strong-Tie's international sales meeting were charged in the fourth quarter of 2002 as compared to 2001 when the meeting was cancelled as a result of the events of September 11, 2001. General and administrative expenses increased 9.2% from $11,285,172 in the fourth quarter of 2001 to $12,329,047 in the fourth quarter of 2002. This increase was primarily due to higher cash profit sharing, as a result of higher operating income, partially offset by a reduction in the bad debt reserve as compared to the fourth quarter of 2001 and by a reduction in goodwill amortization charges as a result of the change in accounting related to the adoption of the new intangible asset accounting standard at the start of 2002. The tax rate was 40.9% in the fourth quarter of 2002, an increase from 38.1% in the fourth quarter of 2001.

For the full year 2002, sales growth occurred throughout North America and Europe. The growth in the United States was strongest in California and the southern and eastern portion of the country. Simpson Strong-Tie's 2002 sales increased 14.2% over the same period last year, while Simpson Dura-Vent's 2002 sales increased 0.7%. Lumber dealers and dealer and contractor distributors were the fastest growing Simpson Strong-Tie connector sales channels. The sales increase was broad based across most of Simpson Strong-Tie's major product lines. Simpson Strong-Tie's Strong-Wall and seismic and high wind related products had the highest percentage growth rates in sales. Sales of Simpson Dura-Vent's Direct-Vent products increased compared to the prior year, while sales of its pellet vent and chimney product lines decreased.

Income from operations for the year increased 30.8% from $65,816,141 in 2001 to $86,082,623 in 2002 and gross margins increased from 38.0% in 2001 to 40.6% in 2002. The increase in gross margins was primarily due to lower manufacturing costs. Selling expenses increased 5.6% from $42,230,211 in 2001 to $44,581,335 in 2002, primarily due to increased sales commissions as a result of sales in excess of goals and to other personnel costs, partially offset by decreased spending on advertising and promotion. General and administrative expenses increased 16.4% from $50,031,666 in 2001 to $58,253,069 in 2002. This increase was primarily due to higher cash profit sharing, as a result of higher operating income, partially offset by a reduction in the bad debt reserve as compared to 2001 and by a reduction in goodwill amortization charges. The reduced amortization charge was affected by both the write-off of the Keybuilder.com software license in the second quarter of 2001 and the change in accounting related to the adoption of the new intangible asset accounting standard at the start of 2002. The tax rate was 40.4% in 2002, a decrease from 41.0% in 2001.

In December 2002, the Board of Directors authorized the Company to buy back up to $50,000,000 of the Company's common stock. This replaces the $35,000,000 buy back authorization from February 2002. The authorization will remain in effect through the end of 2003. Investors, analysts and other interested parties are invited to join the Company's conference call on January 24, 2003, at 6:00 am, Pacific Time. To participate, callers may dial 800-451-7724. The call will be webcast simultaneously as well as being available for approximately one month through a link on the Company's website at http://www.simpsonmfg.com/.

This document contains forward-looking statements, based on numerous assumptions and subject to risks and uncertainties. Although the Company believes that the forward-looking statements are reasonable, it does not and cannot give any assurance that its beliefs and expectations will prove to be correct. Many factors could significantly affect the Company's operations and cause the Company's actual results to be substantially different from the Company's expectations. Those factors include, but are not limited to: (i) general economic and construction business conditions; (ii) customer acceptance of the Company's products; (iii) materials and manufacturing costs; (iv) the financial condition of customers, competitors and suppliers; (v) technological developments; (vi) increased competition; (vii) changes in capital market conditions; (viii) governmental and business conditions in countries where the Company's products are manufactured and sold; (ix) changes in trade regulations; (x) the effect of acquisition activity; (xi) changes in the Company's plans, strategies, objectives, expectations or intentions; and (xii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. Actual results might differ materially from results suggested by any forward-looking statements in this report. The Company does not have an obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

The Company's results of operations for the three and twelve months ended December 31, 2002 and 2001, are as follows:



                              Three Months              Twelve Months
                           Ended December 31,        Ended December 31,
                      ----------------------------    ----------------------------
                              (Unaudited)                (Unaudited)
                          2002            2001            2002            2001
                      ------------    ------------    ------------    ------------
  Net sales           $108,659,643    $ 93,535,611    $465,473,959    $415,862,601
  Cost of sales         66,272,568      60,795,893     276,556,932     257,784,583
                      ------------    ------------    ------------    ------------
    Gross profit        42,387,075      32,739,718     188,917,027     158,078,018
                      ------------    ------------    ------------    ------------

  Selling expenses      12,408,060      10,854,858      44,581,335      42,230,211
  General and
   administrative
   expenses             12,329,047      11,285,172      58,253,069      50,031,666
                      ------------    ------------    ------------    ------------

    Income from
     operations         17,649,968      10,599,688      86,082,623      65,816,141

  Interest income, net     291,796         384,802         985,107       1,587,234
                      ------------    ------------    ------------    ------------
    Income before taxes 17,941,764      10,984,490      87,067,730      67,403,375

  Provision for income
   taxes                 7,344,301       4,187,561      35,133,583      27,619,575
  Minority interest             --          (5,475)             --        (734,326)
                      ------------    ------------    ------------    ------------
    Net income         $10,597,463    $  6,802,404    $ 51,934,147    $ 40,518,126
                      ============    ============    ============    ============

  Net income per share:
    Basic             $       0.43    $       0.28    $       2.12    $       1.67
                      ============    ============    ============    ============
    Diluted           $       0.43    $       0.28    $       2.09    $       1.64
                      ============    ============    ============    ============

  Weighted average shares outstanding:
    Basic               24,542,787      24,320,888      24,470,067      24,216,494
    Diluted             24,871,038      24,670,344      24,807,549      24,631,700

  Other data:
    Depreciation and
     amortization       $2,791,101    $  3,472,378    $ 14,023,152    $ 15,649,657
                      ============    ============    ============    ============

    The Company's financial position as of December 31, 2002 and 2001, is as
follows:

                                                          December 31,
                                                          (Unaudited)
                                                   ---------------------------
                                                       2002          2001
                                                   ------------    ------------

    Cash and short-term investments                $121,001,667    $ 95,871,950
    Trade accounts receivable, net                   55,313,885      42,614,410
    Inventories                                      93,079,620      82,476,299
    Other current assets                             10,619,065       9,006,102
                                                   ------------    ------------
      Total current assets                          280,014,237     229,968,761

    Property, plant and equipment, net               97,396,608      81,410,301
    Other noncurrent assets                          18,990,220      18,232,988
                                                   ------------    ------------
      Total assets                                 $396,401,065    $329,612,050
                                                   ============    ============

    Trade accounts payable                         $ 14,217,487    $ 15,738,659
    Notes payable and current portion 
      of long-term debt                               1,257,782         986,448
    Other current liabilities                        26,262,216      18,982,843
                                                   ------------    ------------
      Total current liabilities                      41,737,485      35,707,950

    Long-term debt                                    5,479,834       5,686,995
    Other liabilities                                        --         100,000
    Stockholders' equity                            349,183,746     288,117,105
                                                   ------------    ------------
      Total liabilities and stockholders' equity   $396,401,065    $329,612,050
                                                   ============    ============

Simpson Manufacturing Co., Inc., headquartered in Dublin, 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 shearwalls. Simpson Strong-Tie also offers a full line of adhesives, mechanical anchors and powder actuated tools for concrete, masonry and steel. The Company's other 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) 560-9032.