Perris, Calif.—October 8, 2007—Modtech Holdings, Inc. (Nasdaq:MODT) today announced that its new Blockhead™ series of modular school restrooms, designed and built to be virtually indestructible, has received California Division of State Architect (“DSA”) pre-approval. According to Modtech President and Chief Executive Officer Dennis Shogren, the DSA pre-approval enables buyers in the California education market to bypass local jurisdictional approval on individual building designs and dramatically reduces delivery time. In addition, noted Shogren, the Blockhead™ buildings are included in a district-approved cooperative purchasing agreement, otherwise known as a “piggyback contract,” further facilitating the purchasing process. “Our announcement today of the Blockhead™ restroom buildings for the education market is part of our product diversification strategy and is expected to contribute to our future revenue growth,” said Shogren.

Blockhead™ restrooms significantly reduce building operating costs. Features include vandal/damage-resistant steel-reinforced concrete and block walls and heavy-duty stainless steel fixtures. High-quality plumbing valves and other building equipment are located inside a secure plumbing chase to protect from theft and vandalism. This plumbing chase also facilitates repairs and maintenance as equipment is centrally located. The ventilation design eliminates the need for mechanical ventilation and the related maintenance and vandalism potential. The sealed concrete slab is sloped towards floor drains and fixtures are wall mounted, facilitating wash down of the interior.

To further reduce construction time, 98% of the building is completed before arrival on location. Site work is, therefore, minimal and the installation time is only days, compared to the weeks it takes to build a restroom on-site. Moreover, the integrated steel reinforced concrete slab allows for placement directly on soil, minimizing site preparation. The building is secure upon arrival, protecting it from theft and vandalism.

The Blockhead™ complements Modtech’s comprehensive offering of modular buildings ranging from single classroom additions to permanent campuses with multi-story buildings. Modtech’s factory construction processes provide its customers with buildings up to 60% faster than those built using conventional on-site construction and with significantly less disruption to the customer’s site. The buildings are of comparable or superior quality to those constructed by conventional methods.