Monetizes Two Real Estate Assets for $8.3 Million Proceeds to be Deployed into Accretive Acquisitions OLD GREENWICH, Conn., July 19, 2024 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (NASDAQ:STRR, STRRP)) ("Star" or the "Company"), a diversified holding company, announced today that Star Real Estate Holdings USA, Inc. ("SRE"), the real estate arm of the Company's Investments division, has closed two sale-leaseback transactions for its South Paris, Maine and Big Lake, Minnesota facilities, totaling approximately $8.3 million in net proceeds before capital gains taxes, if any. Under the terms of the transactions, SRE sold its: South Paris, ME manufacturing facility operated by KBS Builders, Inc. ("KBS"), Star's modular manufacturing business, for approximately $5.6 million in net proceeds, and Big Lake, MN supply center and lumber yard facility operated by Glenbrook Building Supply, Inc. ("Glenbrook"), Star's building supplies distribution business, for approximately $2.7 million in net proceeds. This operating facility was acquired by Star in October 2023 with the Company's acquisition of Big Lake Lumber Inc. Simultaneously, the Company, through its wholly owned subsidiaries, entered into lease agreements as follows: KBS entered into a 20-year lease agreement for the South Paris facility, with the right to extend for up to an additional 20 years, and Glenbrook, along with EdgeBuilder, Inc., entered into a 15-year lease agreement for the Big Lake facility, with the right to extend for an additional 10 years. KBS and Glenbrook will continue to operate the facilities pursuant to the respective leases, and the transactions will have no impact on the businesses' operations. Following the closing of these two leaseback-transactions, Star owns two additional facilities: a 60,000 sq. ft. glulam manufacturing facility in Colfax, Wisconsin (acquired in June 2024, following the closing of the acquisition of Timber Technologies in May 2024), and a 90,000 sq. ft manufacturing facility (currently idle) in Oxford, Maine. "We are excited to announce the closing of these transactions, which align with Star's commitment to strategic capital allocation and the prioritization of EBITDA-generating assets," commented David Noble, CFO of Star. "The proceeds generated from these transactions position us well to pursue our long-term growth strategy, which includes acquisitions within our existing divisions or the addition of new business segments. The recent acquisition of Timber Technologies exemplifies execution on this strategy, significantly increasing Star's cash flow and diversifying revenue. With the closing of these sale-leasebacks, we look forward to pursuing similarly accretive transactions in the future." About Star Equity Holdings, Inc. Star Equity Holdings, Inc. is a diversified holding company currently composed of two divisions: Building Solutions and Investments. Building Solutions