Clayton Homes Buying Alabama Mobile-Home Maker

Addison, Al, August 17, 2006--Southern Energy Homes Inc., which manufactures and sells mobile homes, has reached an agreement to be acquired by the largest company in its industry, Clayton Homes Inc., for $8.50 per share in cash, according to Birmingham Business Journal. Based on shares outstanding as well as available stock options involved, Clayton will pay about $116.5 million for Southern Energy Homes. Clayton Homes is owned by Berkshire Hathaway, which acquired the company in 2003. "This agreement represents a 30-percent premium over (Tuesday's) closing stock price in an all-cash offer to acquire Southern Energy Homes," said Keith Holdbrooks, Southern Energy's CEO, in a written statement. "Our board of directors unanimously approved the proposed merger with Clayton Homes and believes it represents a tremendous opportunity to maximize shareholder value." Clayton Homes' CEO, Kevin Clayton, praised Southern Energy's "unique product offerings and design characteristics." The acquisition, which is subject to Southern Energy shareholder and regulatory approval, is expected to close in about two months. Once it does, Wednesday's news release says, Southern Energy Homes will become a wholly owned subsidiary of Clayton Homes. Clayton operates 36 manufacturing plants, 448 company-owned stores and is affiliated with more than 1,400 independent retailers, 71 manufactured housing communities and subdivisions, and financial services operations that provide mortgage services and insurance for its customers. Jim Stariha, chief financial officer of Southern Energy Homes, said the Alabama company's management and employees are expected to remain in their positions.

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