Perris, Calif.—May 28, 2008—Modtech Holdings, Inc. (Nasdaq: MODT) announced a contract award to construct 120 modular training buildings for search training under the United States Army’s Military Operations on Urban Terrain (MOUT) program. Each building is comprised of either 2 or 4 individual modules. The building designs mimic modern urban warfare areas, providing real life training conditions that cannot be accomplished in simulators. To increase realism, some buildings will feature courtyards, faux kitchens, bathrooms and hiding caches.

The buildings are constructed in Modtech’s Perris, California production facility then transported to various locations when 95% complete. Minimal site work is necessary facilitating installation in remote desert areas of secure military bases.

According to Rick Bartolotti, Modtech Senior Vice President Operations and Group President, “This type of training facility is cost efficient as well as effective for training. Construction of these buildings is very rapid at our modern production facility staffed by a skilled labor force, advancing our troops’ access to necessary training facilities.”

The Modtech factory construction process allows the company to provide military installations with buildings up to 60% faster than conventional on-site construction and with improved security as fewer personnel are required on site compared to site built construction. The buildings are of comparable or superior quality compared to those constructed by conventional methods.