<PAGE>

                                                                     EXHIBIT 4.7

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF YOU ARE IN
ANY DOUBT AS TO THE ACTION TO BE TAKEN, YOU SHOULD IMMEDIATELY CONSULT YOUR
BROKER, BANK MANAGER, LAWYER, ACCOUNTANT, INVESTMENT ADVISOR OR OTHER
PROFESSIONAL.

         This document relates to an exchange offer (the "EXCHANGE OFFER") made
by Berkshire Hathaway Finance Corporation ("BHFC"). The Exchange Offer is
described in the Prospectus, dated [______] (the "PROSPECTUS"), and in this
Letter of Transmittal (this "LETTER OF TRANSMITTAL"). All terms and conditions
contained or otherwise referred to in the Prospectus are deemed to be
incorporated in and form a part of this Letter of Transmittal. Therefore, you
are urged to read the Prospectus and the items referred to therein carefully.
The terms and conditions contained in the Prospectus, together with the terms
and conditions governing this Letter of Transmittal and the instructions herein,
are collectively referred to below as the "TERMS AND CONDITIONS."

                              LETTER OF TRANSMITTAL
                                   RELATING TO
               THE OFFER BY BERKSHIRE HATHAWAY FINANCE CORPORATION

                    TO EXCHANGE 5.10% SENIOR NOTES DUE 2014,
              UNCONDITIONALLY GUARANTEED BY BERKSHIRE HATHAWAY INC.

                              ("REGISTERED NOTES")

                                       FOR

                          5.10% SENIOR NOTES DUE 2014,
              UNCONDITIONALLY GUARANTEED BY BERKSHIRE HATHAWAY INC.

                              ("OUTSTANDING NOTES")

         THE EXCHANGE OFFER FOR THE OUTSTANDING NOTES WILL EXPIRE AT 5:00 P.M.,
NEW YORK CITY TIME, ON [_____], UNLESS EXTENDED BY BHFC (THE "EXPIRATION DATE").

<PAGE>

     Each holder of Outstanding Notes wishing to accept the Exchange Offer,
except holders of Outstanding Notes executing their tenders through the
Automated Tender Offer Program ("ATOP") procedures of The Depository Trust
Company ("DTC"), should complete, sign and submit this Letter of Transmittal to
the exchange agent, J.P. Morgan Trust Company, National Association (the
"EXCHANGE AGENT"), on or prior to the Expiration Date.

                 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION
                          Institutional Trust Services
                                Attn: Frank Ivins
                                2001 Bryan Street
                                   9th Floor
                                Dallas, TX 75201

     DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS, OR TRANSMISSION OF
INSTRUCTIONS VIA A FACSIMILE NUMBER, OTHER THAN AS SET FORTH ABOVE OR IN
ACCORDANCE WITH THE INSTRUCTIONS HEREIN, WILL NOT CONSTITUTE VALID DELIVERY. THE
INSTRUCTIONS ACCOMPANYING THIS LETTER OF TRANSMITTAL SHOULD BE READ CAREFULLY
BEFORE THIS LETTER OF TRANSMITTAL IS COMPLETED.

     Questions regarding the Exchange Offer or the completion of this Letter of
Transmittal should be directed to the Exchange Agent, at : 1-800-275-2048.

     This Letter of Transmittal may be used to accept the Exchange Offer if
Outstanding Notes are to be tendered by effecting a book-entry transfer into the
Exchange Agent's account at DTC and instructions are not being transmitted
through DTC's ATOP procedures. Unless you intend to tender Outstanding Notes
through ATOP, you should complete, execute and deliver this Letter of
Transmittal, along with the physical certificates for the Outstanding Notes
specified herein, to indicate the action you desire to take with respect to the
Exchange Offer.

     Holders of Outstanding Notes tendering by book-entry transfer to the
Exchange Agent's account at DTC may execute the tender through ATOP, for which
the Exchange Offer is eligible. Financial institutions that are DTC participants
may execute tenders through ATOP by transmitting acceptance of the Exchange
Offer to DTC on or prior to the Expiration Date. DTC will verify acceptance of
the Exchange Offer, execute a book-entry transfer of the tendered Outstanding
Notes into the account of the Exchange Agent at DTC and send to the Exchange
Agent a "book-entry confirmation," which shall include an agent's message. An
"agent's message" is a message, transmitted by DTC to, and received by, the
Exchange Agent and forming part of a book-entry confirmation, which states that
DTC has received an express acknowledgement from a DTC participant tendering
Outstanding Notes that the participant has received and agrees to be bound by
the terms of the Letter of Transmittal as an undersigned thereof and BHFC may
enforce such agreement against the participant. Delivery of the agent's message
by DTC will satisfy the terms of the Exchange Offer as to execution and delivery
of a Letter of Transmittal by the DTC participant identified in the agent's
message. ACCORDINGLY, HOLDERS WHO TENDER THEIR OUTSTANDING NOTES THROUGH DTC'S
ATOP PROCEDURES SHALL BE BOUND BY, BUT NEED NOT COMPLETE, THIS LETTER OF
TRANSMITTAL.

     Subject to the terms and conditions and applicable law, BHFC will issue:
for each $1,000 principal amount of Outstanding Notes, $1,000 principal amount
of Registered Notes.

     Outstanding Notes may be exchanged in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof. Registered Notes will be issued
in minimum denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

     Holders that anticipate tendering other than through DTC are urged to
promptly contact a bank, broker or other intermediary (that has the capability
to hold cash and securities custodially through DTC) to arrange for receipt of
any Registered Notes to be delivered pursuant to the Exchange Offer and to
obtain the information necessary to provide the required DTC participant and
account information in this Letter of Transmittal.

     Registered Notes will be issued in exchange for Outstanding Notes in the
Exchange Offer, if consummated, as soon as practicable after the Expiration Date
of the Exchange Offer (the "SETTLEMENT DATE").

                                       2
<PAGE>

                           TENDER OF OUTSTANDING NOTES

     To effect a valid tender of Outstanding Notes through the completion,
execution and delivery of this Letter of Transmittal, the undersigned must
complete the table below entitled "Description of Outstanding Notes Tendered"
and sign the Letter of Transmittal where indicated.

     Registered Notes will be delivered in book-entry form to holders through
DTC and only to the DTC account of the undersigned or the undersigned's
custodian, as specified below, on the Settlement Date, or as soon as practicable
thereafter.

     Failure to provide the information necessary to effect delivery of
Registered Notes will render such holder's tender defective, and BHFC will have
the right, which it may waive, to reject such tender without notice.

                    DESCRIPTION OF OUTSTANDING NOTES TENDERED
                           (SEE INSTRUCTIONS 2 AND 3)

                    NOTE: SIGNATURES MUST BE PROVIDED BELOW.

              PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.

<TABLE>
<CAPTION>
                       NAME OF DTC PARTICIPANT AND PARTICIPANT'S ACCOUNT
OUTSTANDING NOTES      NUMBER IN WHICH OUTSTANDING NOTES ARE HELD AND/OR        AGGREGATE PRINCIPAL AMOUNT OF
 BEING TENDERED      THE CORRESPONDING REGISTERED NOTES ARE TO BE DELIVERED.          OUTSTANDING NOTES*
-----------------    -------------------------------------------------------    -----------------------------
<S>                  <C>                                                        <C>
5.10% SENIOR NOTES   -------------------------------------------------------    -----------------------------
DUE 2014             -------------------------------------------------------    -----------------------------

(CUSIP:  084664AL5)
(CUSIP: U23797AG5)
</TABLE>

*      THE PRINCIPAL AMOUNT OF OUTSTANDING NOTES TENDERED HEREBY MUST BE IN
       DENOMINATIONS OF U.S.$1,000 AND INTEGRAL MULTIPLES OF U.S.$1,000 IN
       EXCESS THEREOF WITH A MINIMUM TENDER REQUIREMENT OF U.S.$2,000. SEE
       INSTRUCTION 3.

                                       3
<PAGE>

         If the aggregate principal amount of the Outstanding Notes specified
was held as of the date of tender by more than one beneficial owner, you may
specify below the break-down of this aggregate principal amount by beneficial
owner, and, in doing so, hereby instruct the Exchange Agent to treat each such
beneficial owner as a separate holder. If the space below is inadequate, attach
a separate signed schedule using the same format.

<TABLE>
<CAPTION>
BENEFICIAL OWNER NAME OR ACCOUNT NUMBER                     PRINCIPAL AMOUNT OF OUTSTANDING NOTES
---------------------------------------                     -------------------------------------
<S>                                                         <C>
---------------------------------------                     -------------------------------------

---------------------------------------                     -------------------------------------

---------------------------------------                     -------------------------------------

---------------------------------------                     -------------------------------------

             TOTAL:
---------------------------------------                     -------------------------------------
</TABLE>

                           SPECIAL RETURN INSTRUCTIONS

  TO BE COMPLETED ONLY IF OUTSTANDING NOTES NOT ACCEPTED FOR EXCHANGE ARE TO BE
 SENT TO SOMEONE OTHER THAN THE PERSON OR PERSONS WHOSE SIGNATURE(S) APPEAR(S)
                       WITHIN THIS LETTER OF TRANSMITTAL.

                               (SEE INSTRUCTION 5)

<TABLE>
<CAPTION>
                    NAME OF DTC PARTICIPANT AND PARTICIPANT'S
                   ACCOUNT NUMBER TO WHICH OUTSTANDING NOTES
                 NOT ACCEPTED FOR EXCHANGE ARE TO BE DELIVERED.
----------       ----------------------------------------------   -------------------------
<S>              <C>                                              <C>
</TABLE>

                                       4
<PAGE>

                    NOTE: SIGNATURES MUST BE PROVIDED BELOW.
              PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.

LADIES AND GENTLEMEN:

      The undersigned hereby tenders to BHFC the aggregate principal amount of
Outstanding Notes indicated in the table above entitled "Description of
Outstanding Notes Tendered."

      The undersigned understands that validly tendered Outstanding Notes (or
defectively tendered Outstanding Notes with respect to which BHFC has, or has
caused to be, waived such defect) will be deemed to have been accepted by BHFC
if, as and when BHFC gives oral or written notice thereof to the Exchange Agent.
The undersigned understands that subject to the terms and conditions,
Outstanding Notes properly tendered and accepted (and not validly withdrawn) in
accordance with the terms and conditions will be exchanged for Registered Notes.
The undersigned understands that Outstanding Notes delivered hereby may be
withdrawn at any time on or prior to the Expiration Date. The undersigned
understands that Outstanding Notes delivered hereby may not be withdrawn at any
time after the Expiration Date unless the Exchange Offer is extended with
changes in the terms of the Exchange Offer that are, in the reasonable judgment
of BHFC, materially adverse to the tendering holder. The undersigned understands
that, under certain circumstances, BHFC may not be required to accept any of the
Outstanding Notes tendered (including any Outstanding Notes tendered after the
Expiration Date). If any Outstanding Notes are not accepted for exchange for any
reason (or if Outstanding Notes are validly withdrawn), such unexchanged (or
validly withdrawn) Outstanding Notes will be returned without expense to the
undersigned's account at DTC or such other account as designated herein pursuant
to the book-entry transfer procedures described in the Prospectus, as promptly
as practicable after the expiration or termination of the Exchange Offer.

      Following the later of the Expiration Date or the date upon which
Outstanding Notes are tendered hereby, and subject to and effective upon BHFC's
acceptance for exchange of the principal amount of the Outstanding Notes
tendered hereby, upon the terms and conditions, the undersigned hereby:

      (1)   irrevocably sells, assigns and transfers to or upon the order of
            BHFC or its nominees, all right, title and interest in and to, and
            any and all claims in respect of or arising or having arisen as a
            result of the undersigned's status as a holder of, all Outstanding
            Notes tendered hereby, such that thereafter it shall have no
            contractual or other rights or claims in law or equity against BHFC
            or any fiduciary, trustee, fiscal agent or other person connected
            with the Outstanding Notes arising under, from or in connection with
            such Outstanding Notes;

      (2)   waives any and all rights with respect to the Outstanding Notes
            tendered hereby (including, without limitation, any existing or past
            defaults and their consequences in respect of such Outstanding
            Notes); and

      (3)   releases and discharges BHFC and J.P. Morgan Trust Company, National
            Association, as trustee (THE "TRUSTEE") from any and all claims the
            undersigned may have, now or in the future, arising out of or
            related to the Outstanding Notes tendered hereby, including, without
            limitation, any and all claims that the undersigned is entitled to
            receive additional principal or interest payments with respect to
            the Outstanding Notes tendered hereby (other than accrued and unpaid
            interest on the Outstanding Notes) or to participate in any
            redemption or defeasance of the Outstanding Notes tendered hereby.

      The undersigned understands that tenders of Outstanding Notes pursuant to
any of the procedures described in the Prospectus and in the instructions in
this Letter of Transmittal and acceptance of such Outstanding Notes by BHFC
will, following such acceptance, constitute a binding agreement between the
undersigned and BHFC upon the terms and conditions.

      All authority conferred or agreed to be conferred by this Letter of
Transmittal shall not be affected by, and shall survive, the death or incapacity
of the undersigned, and any obligation of the undersigned hereunder shall be
binding upon the heirs, executors, administrators, trustees in bankruptcy,
personal and legal representatives, successors and assigns of the undersigned.

                                       5
<PAGE>

      The undersigned hereby represents, warrants and agrees that:

      (1)   it has received and reviewed the Prospectus;

      (2)   it is the beneficial owner (as defined below) of, or a duly
            authorized representative of one or more such beneficial owners of,
            the Outstanding Notes tendered hereby and it has full power and
            authority to execute this Letter of Transmittal;

      (3)   the Outstanding Notes being tendered hereby were owned as of the
            date of tender, free and clear of any liens, charges, claims,
            encumbrances, interests and restrictions of any kind, and BHFC will
            acquire good, indefeasible and unencumbered title to such
            Outstanding Notes, free and clear of all liens, charges, claims,
            encumbrances, interests and restrictions of any kind, when the same
            are accepted by BHFC;

      (4)   it will not sell, pledge, hypothecate or otherwise encumber or
            transfer any Outstanding Notes tendered hereby from the date of this
            Letter of Transmittal and agrees that any purported sale, pledge,
            hypothecation or other encumbrance or transfer will be void and of
            no effect;

      (5)   in evaluating the Exchange Offer and in making its decision whether
            to participate therein by submitting this Letter of Transmittal and
            tendering its Outstanding Notes, the undersigned has made its own
            independent appraisal of the matters referred to in the Prospectus
            and in any related communications and is not relying on any
            statement, representation or warranty, express or implied, made to
            such holder by BHFC or the Exchange Agent other than those contained
            in the Prospectus (as amended or supplemented to the Expiration
            Date);

      (6)   the execution and delivery of this Letter of Transmittal shall
            constitute an undertaking to execute any further documents and give
            any further assurances that may be required in connection with any
            of the foregoing, in each case on and subject to the terms and
            conditions;

      (7)   the submission of this Letter of Transmittal to the Exchange Agent
            shall, subject to a holder's ability to withdraw its tender prior to
            the Expiration Date, and subject to terms and conditions of the
            Exchange Offer generally, constitute the irrevocable appointment of
            the Exchange Agent as its attorney and agent, and an irrevocable
            instruction to such attorney and agent to complete and execute all
            or any form(s) of transfer and other document(s) at the discretion
            of such attorney and agent in relation to the Outstanding Notes
            tendered hereby in favor of BHFC or such other person or persons as
            they may direct and to deliver such form(s) of transfer and other
            document(s) in the attorney's and/or agent's discretion and the
            certificate(s) and other document(s) of title relating to such
            Outstanding Notes' registration and to execute all such other
            documents and to do all such other acts and things as may be in the
            opinion of such attorney or agent necessary or expedient for the
            purpose of, or in connection with, the acceptance of the Exchange
            Offer, and to vest in BHFC or its nominees such Outstanding Notes;
            and

      (8)   it is acquiring the Registered Notes in its ordinary course of
            business and has no arrangement or understanding with any person to
            participate in the distribution of the Registered Securities to be
            received in the Exchange Offer;

      (9)   if it is a broker-dealer holding Outstanding Notes acquired for its
            own account as a result of market-making or other trading
            activities, it will deliver a prospectus meeting the requirements of
            the Securities Act of 1933 in connection with any resale of the
            Registered Notes received pursuant to the Exchange Offer (provided,
            that, by so agreeing and by delivering a prospectus, any such
            broker-dealer will not be deemed to admit that it is an
            "underwriter" within the meaning of the Securities Act of 1933); and

      (10)  the terms and conditions shall be deemed to be incorporated in, and
            form a part of, this Letter of Transmittal, and the terms and
            conditions shall be read and construed accordingly.

      BHFC hereby informs any holder of Outstanding Notes using the Exchange
Offer to participate in a distribution of the Registered Notes to be acquired in
the Exchange Offer that any such holder (1) can not rely on the position of the
SEC's staff enunciated in Exxon Capital Holdings Corporation (pub. avail. May
13, 1988) or similar letters and

                                       6
<PAGE>

(2) must comply with the registration and prospectus delivery requirements of
the Securities Act in connection with a secondary resale transaction of the
Exchange Notes.

      The representations and warranties and agreements of a holder tendering
Outstanding Notes shall be deemed to be repeated and reconfirmed on and as of
the Expiration Date and the Settlement Date. For purposes of this Letter of
Transmittal, the "BENEFICIAL OWNER" of any Outstanding Notes shall mean any
holder that exercises sole investment discretion with respect to such
Outstanding Notes.

      The undersigned understands that tenders may not be withdrawn at any time
after the Expiration Date except as set forth in the Prospectus, unless the
Exchange Offer is extended with changes to the terms and conditions that are, in
the reasonable judgement of BHFC, materially adverse to the undersigned, in
which case tenders may be withdrawn under the conditions described in the
extension.

      If the Exchange Offer is amended in a manner determined by BHFC to be
materially adverse to tendering holders, BHFC will extend the Exchange Offer for
a period of two to ten business days, depending on the significance of the
amendment and the manner of disclosure to such holders, if the Exchange Offer
would otherwise have expired during such two- to ten-business day period. Any
change in the consideration offered to holders of Outstanding Notes in the
Exchange Offer shall be paid to all holders of Outstanding Notes whose
securities have previously been tendered and not withdrawn pursuant to the
Exchange Offer.

      If the "Special Return Instructions" box (found above) is completed,
please credit the indicated DTC account for any book-entry transfers of
Outstanding Notes not accepted for exchange.

      The undersigned recognizes that BHFC has no obligation under the "Special
Return Instructions" provision of this Letter of Transmittal to effect the
transfer of any Outstanding Notes from the holder(s) of such Outstanding Notes
if BHFC does not accept for exchange any of the principal amount of the
Outstanding Notes tendered pursuant to this Letter of Transmittal.

                                       7
<PAGE>

                                    SIGN HERE

      By completing, executing and delivering this Letter of Transmittal, the
undersigned hereby tenders to BHFC the principal amount of the Outstanding Notes
listed in the table set forth above labeled "Description of Outstanding Notes
Tendered."

_________________________________________________________        _______________
Signature of Registered Holder(s) or Authorized Signatory             Date
             (see guarantee requirement below)

_________________________________________________________        _______________
Signature of Registered Holder(s) or Authorized Signatory             Date
             (see guarantee requirement below)

_________________________________________________________        _______________
Signature of Registered Holder(s) or Authorized Signatory             Date
             (see guarantee requirement below)

Area Code and Telephone Number:_________________________________________________

      If a holder of Outstanding Notes is tendering any Outstanding Notes, this
Letter of Transmittal must be signed by the Registered Holder(s) exactly as the
name(s) appear(s) on a securities position listing of DTC or by any person(s)
authorized to become the Registered Holder(s) by endorsements and documents
transmitted herewith. If the signature is by a trustee, executor, administrator,
guardian, attorney-in-fact, officer or other person, acting in a fiduciary or
representative capacity, please set forth at the line entitled "Capacity (full
title)" and submit evidence satisfactory to the Exchange Agent and BHFC of such
person's authority to so act. See Instruction 4.

Name(s): _______________________________________________________________________

________________________________________________________________________________
                                   (Please Type or Print)

Capacity (full title): _________________________________________________________

Address: _______________________________________________________________________
                                    (Including Zip Code)

                          MEDALLION SIGNATURE GUARANTEE
                       (If required -- See Instruction 4)

Signature(s) Guaranteed by
an Eligible Institution: _______________________________________________________
                                    (Authorized Signature)

________________________________________________________________________________
                                          (Title)

________________________________________________________________________________
                                       (Name of Firm)

________________________________________________________________________________
                                         (Address)

Dated:_________________, 200[_]

                                       8
<PAGE>

                   INSTRUCTIONS FORMING PART OF THE TERMS AND
                        CONDITIONS OF THE EXCHANGE OFFER

      1.    DELIVERY OF LETTER OF TRANSMITTAL. This Letter of Transmittal is to
be completed by tendering holders of Outstanding Notes if tender of such
Outstanding Notes is to be made by book-entry transfer to the Exchange Agent's
account at DTC and instructions are not being transmitted through ATOP. HOLDERS
WHO TENDER THEIR OUTSTANDING NOTES THROUGH DTC'S ATOP PROCEDURES SHALL BE BOUND
BY, BUT NEED NOT COMPLETE, THIS LETTER OF TRANSMITTAL; THUS, A LETTER OF
TRANSMITTAL NEED NOT ACCOMPANY TENDERS EFFECTED THROUGH ATOP.

      A confirmation of a book-entry transfer into the Exchange Agent's account
at DTC of all Outstanding Notes delivered electronically, as well as a properly
completed and duly executed Letter of Transmittal (or a manually signed
facsimile thereof) or properly transmitted agent's message, and any other
documents required by this Letter of Transmittal, must be received by the
Exchange Agent at its address set forth herein on or prior to the Expiration
Date.

      Any financial institution that is a participant in DTC may electronically
transmit its acceptance of the Exchange Offer by causing DTC to transfer
Outstanding Notes to the Exchange Agent in accordance with DTC's ATOP procedures
for such transfer on or prior to the Expiration Date. The Exchange Agent will
make available its general participant account at DTC for the Outstanding Notes
for purposes of the Exchange Offer.

      DELIVERY OF A LETTER OF TRANSMITTAL TO DTC WILL NOT CONSTITUTE VALID
DELIVERY TO THE EXCHANGE AGENT. No Letter of Transmittal should be sent to BHFC
or DTC.

      The method of delivery of this Letter of Transmittal and all other
required documents, including delivery through DTC and any acceptance or agent's
message delivered through ATOP, is at the option and risk of the tendering
holder. If delivery is by mail, registered mail, with return receipt requested
and properly insured, is recommended. Instead of delivery by mail, it is
recommended that the holder use an overnight or hand-delivery service. In all
cases, sufficient time should be allowed to ensure timely delivery.

      Neither BHFC nor the Exchange Agent is under any obligation to notify any
tendering holder of Outstanding Notes of BHFC's acceptance of tendered
Outstanding Notes prior to the Expiration Date.

      2.    DELIVERY OF THE REGISTERED NOTES. Registered Notes to be issued
according to the terms of the Exchange Offer, if consummated, will be delivered
in book-entry form to holders of Outstanding Notes tendered in the Exchange
Offer. In order to permit such delivery, the appropriate DTC participant name
and number (along with any other required account information) must be provided
in the table entitled "Description of the Outstanding Notes." Failure to do so
will render a tender of the Outstanding Notes defective, and BHFC will have the
right, which it may waive, to reject such delivery. Holders that anticipate
participating in the Exchange Offer other than through DTC are urged to promptly
contact a bank, broker or other intermediary (that has the capability to hold
securities custodially through DTC) to arrange for receipt of any Registered
Notes delivered pursuant to the Exchange Offer and to obtain the information
necessary to complete the table.

      3.    AMOUNT OF TENDERS. Tenders of Outstanding Notes will be accepted in
denominations of U.S. $1,000 and integral multiples of U.S.$1,000 in excess
thereof with a minimum tender requirement of $2,000. Book-entry transfers to the
Exchange Agent should be made in the exact principal amount of Outstanding Notes
tendered.

      4.    SIGNATURES ON LETTER OF TRANSMITTAL; INSTRUMENTS OF TRANSFER;
GUARANTEE OF SIGNATURES. For purposes of this Letter of Transmittal, the term
"REGISTERED HOLDER" means an owner of record as well as any DTC participant that
has Outstanding Notes credited to its DTC account. Except as otherwise provided
below, all signatures on this Letter of Transmittal must be guaranteed by a
recognized participant in the Securities Transfer Agents Medallion Program, the
NYSE Medallion Signature Program or the Stock Exchange Medallion Program (each,
a "MEDALLION SIGNATURE CO-OBLIGOR"). Signatures on the Letter of Transmittal
need not be guaranteed if:

                                       9
<PAGE>

      -     the Letter of Transmittal is signed by a participant in DTC whose
            name appears on a security position listing as the owner of the
            Outstanding Notes and the holder(s) has not completed the box
            entitled "Special Return Instructions" on the Letter of Transmittal;
            or

      -     the Outstanding Notes are tendered for the account of an "eligible
            institution."

      An "eligible institution" is one of the following firms or other entities
identified in Rule l7Ad-15 under the Securities Exchange Act of 1934 (as the
terms are used in Rule 17Ad-15):

            (a)   a bank;

            (b)   a broker, dealer, municipal securities dealer, municipal
      securities broker, government securities dealer or government securities
      broker;

            (c)   a credit union;

            (d)   a national securities exchange, registered securities
      association or clearing agency; or

            (e)   a savings institution that is a participant in a Securities
      Transfer Association recognized program.

      If any of the Outstanding Notes tendered are held by two or more
Registered Holders, all of the Registered Holders must sign the Letter of
Transmittal.

      BHFC will not accept any alternative, conditional, irregular or contingent
tenders. By executing the Letter of Transmittal (or facsimile thereof) or
directing DTC to transmit an agent's message, you waive any right to receive any
notice of the acceptance of your Outstanding Notes for exchange.

      If this Letter of Transmittal or instruments of transfer are signed by
trustees, executors, administrators, guardians or attorneys-in-fact, officers of
corporations or others acting in a fiduciary or representative capacity, such
persons should so indicate when signing and, unless waived by BHFC, evidence
satisfactory to BHFC of their authority to so act must be submitted with this
Letter of Transmittal.

      Beneficial owners whose tendered Outstanding Notes are registered in the
name of a broker, dealer, commercial bank, trust company or other nominee must
contact such broker, dealer, commercial bank, trust company or other nominee if
they desire to tender such Outstanding Notes.

      5.    SPECIAL RETURN INSTRUCTIONS. All Outstanding Notes tendered hereby
and not accepted for exchange will be returned to the undersigned according to
the information provided in the table entitled "Description of the Outstanding
Notes Tendered" or, if completed, according to the "Special Return Instructions"
box in this Letter of Transmittal.

      6.    TRANSFER TAXES. Except as set forth in this Instruction 6, BHFC will
pay or cause to be paid any transfer taxes with respect to the transfer and sale
of Outstanding Notes to it, or to its order, pursuant to the Exchange Offer. If
payment is to be made to, or if Outstanding Notes not tendered or purchased are
to be registered in the name of any persons other than the Registered Holder, or
if tendered Outstanding Notes are registered in the name of any persons other
than the persons signing this Letter of Transmittal, the amount of any transfer
taxes (whether imposed on the Registered Holder or such other person) payable on
account of the transfer to such other person will be deducted from the payment
unless satisfactory evidence of the payment of such taxes or exemption therefrom
is submitted.

      7.    VALIDITY OF TENDERS. All questions concerning the validity, form,
eligibility (including time of receipt), acceptance and withdrawal of tendered
Outstanding Notes will be determined by BHFC in its sole discretion, which
determination will be final and binding. BHFC reserves the absolute right to
reject any and all tenders of Outstanding Notes not in proper form or any
Outstanding Notes the acceptance for exchange of which may, in the opinion of
its counsel, be unlawful. BHFC also reserves the absolute right to waive any
defect or irregularity in

                                       10
<PAGE>

tenders of Outstanding Notes, whether or not similar defects or irregularities
are waived in the case of other tendered securities. The interpretation of the
terms and conditions by BHFC shall be final and binding on all parties. Unless
waived, any defects or irregularities in connection with tenders of Outstanding
Notes must be cured within such time as BHFC shall determine. None of BHFC, the
Exchange Agent or any other person will be under any duty to give notification
of defects or irregularities with respect to tenders of Outstanding Notes, nor
shall any of them incur any liability for failure to give such notification.

      Tenders of Outstanding Notes will not be deemed to have been made until
such defects or irregularities have been cured or waived. Any Outstanding Notes
received by the Exchange Agent that are not validly tendered and as to which the
defects or irregularities have not been cured or waived will be returned by the
Exchange Agent to the holders of Outstanding Notes, unless otherwise provided in
this Letter of Transmittal, as soon as practicable following the Expiration Date
or the withdrawal or termination of the Exchange Offer.

      8.    WAIVER OF CONDITIONS. BHFC reserves the absolute right to amend or
waive any of the conditions in the Exchange Offer concerning any Outstanding
Notes at any time.

      9.    WITHDRAWAL. Tenders may be withdrawn only pursuant to the procedures
and subject to the terms set forth in the Prospectus under the caption "The
Exchange Offer -- Withdrawal of Tenders."

      10.   REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES. Questions and requests
for assistance and requests for additional copies of the Prospectus and this
Letter of Transmittal may be directed to the Exchange Agent at the address and
telephone number indicated herein.

      11.   TAX IDENTIFICATION NUMBER. Federal income tax law requires that a
U.S. Holder (defined below) whose Outstanding Notes are accepted for exchange
must provide the Exchange Agent with his, her or its correct Taxpayer
Identification Number ("TIN"), which, in the case of an exchanging U.S. Holder
who is an individual, is his or her social security number. If the Exchange
Agent is not provided with the correct TIN or an adequate basis for exemption,
such holder may be subject to a $50 penalty imposed by the Internal Revenue
Service (the "IRS"), and payments made with respect to the Registered Notes or
the Exchange Offer may be subject to backup withholding at a rate of 30%
(subject to periodic reductions through 2010, at which time the rate is
currently scheduled to be increased to 31%). If withholding results in an
overpayment of taxes, a refund may be obtained.

      To prevent backup withholding, each exchanging U.S. Holder must provide
his, her or its correct TIN by completing the copy of the IRS Form W-9 attached
to this Letter of Transmittal, certifying that the TIN provided is correct (or
that such U.S. Holder is awaiting a TIN) and that the U.S. Holder is exempt from
backup withholding because (i) the holder has been notified by the IRS that he,
she or it is subject to backup withholding as a result of a failure to report
all interests or dividends, or (ii) the IRS has notified the U.S. Holder that
he, she or it is no longer subject to backup withholding. If the Outstanding
Notes are in more than one name or are not in the name of the actual owner,
consult the Form W-9 Instructions for information on which TIN to report. If you
do not provide your TIN to the Exchange Agent within 60 days, backup withholding
may begin and continue until you furnish your TIN.

      Exempt holders (including, among others, all corporations and certain
foreign individuals) are not subject to these withholding and reporting
requirements. See the enclosed copy of the IRS Form W-9. In order to satisfy
BHFC that a foreign individual qualifies as an exempt recipient, such holder
must submit a properly completed IRS Form W-8BEN (or other applicable form)
certifying, under penalty of perjury, to such holder's foreign status in order
establish an exemption from backup withholding. A copy of the Form W-8BEN is
attached to this Letter of Transmittal. Other applicable forms may be obtained
from the Exchange Agent.

      For the purposes of these instructions, a "U.S. HOLDER" is (i) a citizen
or resident of the United States, (ii) a corporation, or other entity taxable as
a corporation for U.S. federal income tax purposes, created or organized in or
under the laws of the United States or of any political subdivision thereof, or
(iii) an estate or trust the income of which is subject to United States federal
income taxation regardless of its source.

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      12.   The exchange of Outstanding Notes for Registered Notes will not be a
taxable event for U.S. federal income tax purposes. See "Material United States
Federal Income Tax Consequences" in the Prospectus.

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   In order to tender, a holder of Outstanding Notes should send or deliver a
   properly completed and signed Letter of Transmittal and any other required
    documents to the Exchange Agent at its address set forth below or tender
               pursuant to DTC's Automated Tender Offer Program.

                  The Exchange Agent for the Exchange Offer is:

                 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION
                          Institutional Trust Services
                                Attn: Frank Ivins
                                2001 Bryan Street
                                   9th Floor
                                Dallas, TX 75201

      Any questions or requests for assistance or for additional copies of the
Prospectus, this Letter of Transmittal, or related documents may be directed to
the Exchange Agent at 1-800-275-2048. A holder of Outstanding Notes may also
contact such holder's custodian bank, depositary, broker, trust company or other
nominee for assistance concerning the Exchange Offer.