Kevco, Inc.
Ticker:KVCO University Centre I 1300 S. University Drive, Suite 200
Exchange:NASDAQ-National Market Fort Worth, Texas 76101
Industry:Manufacturing (817) 332-2758

Type of Shares:Common Shares Filing Date:8/30/96
U.S. Shares:2,100,000 Offer Date:11/1/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:2,100,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $25,200,000 Selling:$0.48
Expenses:$500,000 Reallowance:$0.10
Shares Out After:6,494,500

ManagerTierPhone
Rauscher Pierce Refsnes, Inc.Lead Manager (214) 978-5491
Oppenheimer & Company, Inc.Co-manager (212) 667-7402

Auditor: Coopers & Lybrand
6 Month Ending Financials
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$182.52$135.52$56.30Assets:$58.40
Net Income:$4.32$7.03$2.10Liabilities:$50.46
EPS:$0.87$0.90Equity:$7.94

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is a leading wholesale distributor of building products to the manufactured housing and recreational vehicle industries. Through its 17 distribution centers, the company distributes more than 10,000 different inventory items to approximately 278 manufactured home and 148 RV manufacturing facilities throughout the United States. Kevco is one of only a few companies capable of providing national distribution of building products to the manufactured housing and RV industries. In addition, the company is a leading manufacturer of wood products for the manufactured housing industry in the southeastern and southwestern United States. The company believes that it provides a cost effective form of distribution that offers value to both the company's suppliers and producers of manufactured homes and RVs. Kevco believes that it provides significant benefits to its suppliers by placing large orders at regular intervals, thereby meeting minimum lead time and purchase order sizes that enable its suppliers to achieve efficient and cost-effective production planning and economies of scale.

Use of Proceeds
The proceeds from the proposed offering will be used to reduce indebtedness, including the prior S Corporation Earnings Note issued in connection with the S Corporation distribution.

Last updated: 12/29/96

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