Patrick Industries, Inc. Announces New Credit Facility

ELKHART, Ind., March 31, 2011 /PRNewswire/ — Patrick Industries, Inc. (Nasdaq:
PATK) announced today that it has entered into a credit agreement with Wells
Fargo Capital Finance, LLC as the lender and agent, establishing a four-year
$50.0 million revolving secured senior credit facility.

Additional subordinated debt financing of $5.0 million was provided by Tontine
Capital Overseas Master Fund II, L.P., a significant shareholder of Patrick, and
Northcreek Mezzanine Fund I, L.P. in the form of secured senior subordinated
notes. As part of the consideration for the notes, the Company issued warrants
to purchase 125,000 shares of common stock to each of Tontine and Northcreek at
an exercise price of $0.01 per share. The warrants are immediately exercisable
and expire on March 31, 2016.

Patrick used the proceeds of these financings to repay in full its existing
senior credit facility at par. In addition, the Company terminated and paid off
its existing interest rate swap agreements. The swaps had a total fair value in
the amount of $1.1 million on the termination date.

“We are excited to have entered into this new credit agreement which, based on
our projections, provides the availability for Patrick to finance its ongoing
working capital needs and general corporate purposes for the next four years. We
are also very appreciative of the support that JPMorgan Chase and our other
senior lenders have provided throughout the process of not only weathering the
severe economic downturn, but in allowing us the time and opportunity to put a
competitive facility in place to meet both our short-term and long-term needs.
In addition, we look forward to our new partnership with Wells Fargo and
Northcreek, as well as continuing our ongoing strong relationship with Tontine,”
stated Todd Cleveland, President and CEO.

About Patrick Industries

Patrick Industries, Inc. (www.patrickind.com) is a major manufacturer of
component products and distributor of building products serving the recreational
vehicle, manufactured housing, kitchen cabinet, household furniture, fixtures
and commercial furnishings, marine, and other industrial markets and operates
coast-to-coast through locations in 12 states. Patrick’s major manufactured
products include decorative vinyl and paper panels, wrapped profile mouldings,
cabinet doors and components, interior passage doors, slotwall and slotwall
components, and countertops. The Company also distributes drywall and drywall
finishing products, electronics, adhesives, wiring, electrical and plumbing
products, cement siding, interior passage doors, roofing products, laminate
flooring, and other miscellaneous products.

Forward-Looking Statements

This press release contains certain statements related to future results, or
states our intentions, beliefs and expectations or predictions for the future,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve a number of risks and uncertainties that could cause actual results to
differ materially from either historical or anticipated results depending on a
variety of factors. Potential factors that could impact results include: the
impact of any economic downturns especially in the residential housing market,
pricing pressures due to competition, costs and availability of raw materials,
availability of commercial credit, availability of retail and wholesale
financing for residential and manufactured homes, availability and costs of
labor, inventory levels of retailers and manufacturers, levels of repossessed
residential and manufactured homes, the financial condition of our customers,
the ability to generate cash flow or obtain financing to fund growth, future
growth rates in the Company’s core businesses, interest rates, oil and gasoline
prices, the outcome of litigation, adverse weather conditions impacting retail
sales, and our ability to remain in compliance with our credit agreement
covenants. In addition, national and regional economic conditions and consumer
confidence may affect the retail sale of recreational vehicles and residential
and manufactured homes. The Company does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the date the
forward-looking statements are made. Further information regarding these and
other risks, uncertainties and factors is contained in the section entitled
“Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2010, and in the Company’s Form 10-Qs for subsequent quarterly
periods, which are filed with the Securities and Exchange Commission (“SEC”) and
are available on the SEC’s website at www.sec.gov.