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FOR IMMEDIATE RELEASE

June 23, 2009
Contact: Tom Hardiman
Modular Building Institute
888-811-3288 x158 toll-free

Modular Building Institute Releases
2009 Commercial Modular Construction Report


Charlottesville, VA - The Modular Building Institute (MBI) today announced that it has released its 2009 Commercial Modular Construction Report. MBI is the only international, non-profit trade association that represents dealers and manufacturers of commercial modular buildings. Each year MBI works with Robert W. Baird & Co. (Baird) to gather and analyze investor data on the commercial modular industry. Baird is an internationally recognized member of the NYSE that specializes in equity research, private equity and public finance services. The 2009 Commercial Modular Construction Report is the fourth joint report.

In 2008 the industry produced fewer units overall than 2007. According to the quarterly surveys, manufacturers reported 23% fewer floors produced. Labeling information from several sources indicate that production in some areas could be off by as much as 30-35%. These challenging times, however, may actually benefit the modular industry in the long term, as weaknesses in the site-built industry grow:

Owners and developers are increasingly expecting faster schedules, better prices, more environmentally-friendly options and higher quality. Building teams are starting to look toward modular construction as an obvious choice in green building. MBI expects this to be the year that several modular buildings achieve LEED certification. Leaders in sustainability are now pointing to the industry's promise for an "inherently greener" building process. MBI recently published a report by USGBC chair Robert J. Kobet outlining industry compatibilities with LEED 2009, Version 3.0.

U.S. Government agencies continue to embrace modular building concepts. And the bright spot for the industry in 2009 and 2010 is growing demand in government & military construction projects. The U.S. Army Corps of Engineers (USACE) has begun to rely on modular construction to meet its facility needs. Other opportunities for modular construction include agencies needing facilities in a quick timeframe or in remote locations. Retired Lt. General Paul (P.K.) Carlton, Jr., United States Air Force recently testified before the Senate Committee on Indian Affairs about the advantages of modular construction.

"Given that the advantages of modular construction are real - quality control, speed, and inherently green processes - public awareness of the industry will continue to grow," said Tom Hardiman, executive director of the Modular Building Institute. "Virtually every other major industry has been automated in the last one hundred years, except construction. By delivering on this potential, the modular construction industry as a whole could break through within the next three to five years."

About MBI
Founded in 1983, the Modular Building Institute is the only, international, non-profit trade association serving non-residential modular construction. MBI publishes the only annual report on the industry that surveys commercial modular construction markets. MBI membership includes wholesale manufacturers, direct manufacturers, and dealers of commercial modular buildings, as well as associate members that are companies supplying building components, services, and financing to the industry. It is MBI's mission to grow the industry and its capabilities by encouraging innovation, quality, and professionalism through communication, education, and recognition. MBI also administers an educational foundation. For more information, visit modular.org.

About Baird
Baird, established in 1919, is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Baird's principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird's private equity operations. Robert W. Baird & Co. is a member of the New York Stock Exchange and other principal exchanges and the Securities Investor Protection Corporation (SIPC). Robert W. Baird Ltd. and Baird Capital Partners Europe are authorized and regulated in the United Kingdom by the Financial Services Authority.

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