TORONTO--(BUSINESS WIRE)--Aug. 24, 1999--

Network Forest Products Ltd., a wholly owned subsidiary of Value Holdings, Inc., (OTC BB:VALH) is using leading edge technology to cut costs, increase efficiency and save trees.

Robert Ziner, President of Network and CEO of Value Holdings, has been a long time believer in using technology in the lumber business. "Using the latest technology is one of the keys to increased productivity and increased customer service," according to Ziner. "I first introduced computers for accounting and sales into my father's lumber company, John Ziner Lumber, Ltd., in the mid 1970s. That investment paid for itself quickly."

Starting September 1, 1999, Network will be implementing Javalin, a customized modular software package designed for the company that will handle all sales, purchases, inventory and accounting functions. All the modules can interact with each other and allow management to have an accurate picture of the state of the company. The system is intended to streamline the company's processes and increase productivity according to Suresh Balendra, Network's head of information technology. The system will operate on the company's newly installed WindowsNT based network.

The use of technology at Network Forest Products goes beyond just computer systems for accounting and administrative work. Ziner has developed and patented an artificial intelligence system called Opti-Stress which determines the optimum way to cut each board. This system has the potential to increase gross margins by up to 400% and also reduce labor costs. The increased efficiency of the system also has the potential to increase output while using fewer trees. The system has been called "leading edge" according to an article in the Toronto Sun featuring Ziner and the Opti-Stress System. The system has not yet been implemented at Network, which uses a mechanically integrated inline wood processing system as opposed to Opti-Stress' computer integrated system. Network does however operate a prototype of the system.

Network also intends to integrate Cutler Forest Products, Seabright Wood Fabricators, and Harron Home Hardware into the Javalin system.

"With Cutler and Seabright we are dealing with two warehouses totaling over 140,000 square feet, a delivery fleet, and a state-of-the-art wood component shop. It is essential that we are able to utilize and allocate each of these resources efficiently," said Ziner. "By networking each of these locations together we will know which resources aren't being utilized and reallocate them." While Network and Cutler are not in the same sector of the forest products industry, Ziner believes there is sufficient overlap that there can be a cross-utilization of resources. Cutler is a manufacturer of plywood, composite materials, and pre-manufactured components which are used in making cabinets, shelving, store fixtures and furniture. Cutler also sells its products to retailers such as Home Depot.