Press Release

WINCHESTER, Va.--(BUSINESS WIRE)--Feb. 26, 2001--Trex Company, Inc. (NYSE: TWP), manufacturer of Trex(R) Easy Care Decking(R), today announced financial results for the fourth quarter and the year ended December 31, 2000.

Revenues for fiscal 2000 grew to $117.6 million from $77.6 million in 1999, an increase of 51.6%. Net income for the year grew 50% to $19.3 million from supplemental pro forma net income of $12.9 million in 1999. On a fully diluted per share basis, net income was $1.36 per share versus $0.91 per share on a supplemental pro forma basis in 1999.

Revenues for the quarter increased 28% to $16.3 million from $12.7 million in 1999. Net income for the quarter was essentially unchanged at $1.0 million, or $0.07 per diluted share. As previously reported, recent revenue results were affected by a temporary slowdown in new orders after the company's capacity increases eliminated the need to allocate products to its distributor network. Income was adversely affected primarily by somewhat higher manufacturing costs.

Trex President Robert Matheny summarized the results by saying, "Fiscal 2000 has been another record year for our growing business. We achieved solid revenue and earnings gains, made substantial progress in our long-range expansion plans, and increased our distribution network. This steady progress enabled us to easily surpass the $100 million dollar revenue milestone. Since 1998, the year before Trex's IPO, revenues have increased by 139% while income grew by 177% on a supplemental pro forma basis.

Operating highlights for the quarter included:

• The number of dealer locations has increased from 2,400 to 2,700 - an increase of 13%. The wholesale distribution network has increased from 72 to 82 locations. These additions were made possible by adding product capacity so as to eliminate the need for product allocation.

• Membership in the Trex Builders Club reached 10,000, demonstrating excellent acceptance from deck contractors across the country. A new TrexPro classification was initiated, enabling consumers to access a list of Trex-trained contractors in their area.

• Madeira, a redwood-brown color of Trex decking, was introduced nationally during the fourth quarter. Market response was very positive for this color, which previously had only been available in the Western states.

• Trex Company has been increasingly successful in gaining sales to the new home market. Pulte Homes, Toll Brothers, Weiland Homes, Royce Homes and David Weekly Homes have all selected Trex decking for major residential developments. This activity represents a supplement to Trex's base in the remodeling arena.

"Consumer inquiries about Trex products continue to increase," continued Mr. Matheny. "During 2000, there were 22 million hits to our Trex Web site - an increase of 83% over the prior year. More importantly, customer satisfaction with Trex products remains extremely high. In fact, we receive many inquiries from Trex deck owners who would like to invest in the company. In response to these requests, we have recently added a new stock purchase service to our Web site. The new service is provided by BUYandHOLD Securities Corporation, a registered broker dealer, and provides an easy way for individuals to purchase Trex Company common stock.

"Going forward, we continue to see great opportunities for long-term growth for Trex Company in the decking market. Non-wood decking still represents only 5% of the approximately $2.5 billion spent on decks in 2000 in the U.S. We have established ourselves as the leader in the non-wood decking market, and intend to build upon this momentum. Our recent announcement of a third manufacturing site demonstrates the commitment to our strategy of steady, controlled expansion. It is clear that underlying demand is growing as the knowledge of our superior products spreads among contractors and homeowners. We believe this demand will continue to drive the long-term growth of Trex Company.

Trex Company is the nation's largest manufacturer of non-wood decking, which is marketed under the brand name Trex(R). Trex Wood-Polymer(TM) lumber offers an attractive appearance and the workability of wood without the ongoing need for protective sealants or repairs. Trex decking is manufactured in a proprietary process that combines waste wood fibers and reclaimed polyethylene and is used primarily for residential and commercial decking. The Company sells its products through 82 wholesale distribution locations, which in turn sell Trex decking to about 2700 independent contractor-oriented retail lumberyards across the United States.

In October 2000, "Forbes Magazine" ranked Trex Co. as number one in its list of the nation's 200 Best Small Companies. In February 2001, "HOME Magazine" awarded Trex Easy Care Decking with the American Building Products Award for "defining the composite decking category." For a Trex decking dealer near you, call 1-800-BUY-TREX (289-8739) or for dealers and product details, visit www.trex.com.

Trex(R) Easy Care Decking(R) and Wood-Polymer(TM) Lumber(TM) are trademarks of Trex Company, Inc., Winchester, VA.

The statements in this press release regarding the Company's expected sales performance and operating results, its anticipated financial condition and its business strategy constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include the extent of market acceptance of the Company's products, the Company's ability to increase its manufacturing capacity, the sensitivity of the Company's business to general economic conditions and the highly competitive markets in which the Company operates. The Company's report on Form 10-K filed with the Securities and Exchange Commission on March 22, 2000 discusses some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

                          TREX COMPANY, INC.
            Condensed Consolidated Statements of Operations
            (In thousands, except share and per share data)


                         Quarter Ended Dec. 31,    Year Ended Dec. 31,

                           2000       1999         2000         1999

                        (unaudited) (unaudited)  (unaudited)


Net sales(b)               $  16,260  $  12,658  $ 117,568  $  77,570

Cost of sales(b)               9,822      7,336     61,852     37,707


Gross profit                   6,438      5,322     55,716     39,863

Selling, general and 
 administrative expenses       4,733      3,516     23,830     18,370

Income from operations         1,705      1,806     31,886     21,493

Interest expense, net           (286)      (208)      (902)    (1,476)

Income before income taxes 
 and extraordinary item        1,419      1,598     30,984     20,017

Income taxes                     451        608     11,682      7,281

Income before extraordinary item 968        990     19,302     12,736

Extraordinary loss on the 
 early extinguishment of debt, 
 net of taxes                     --         --         --     (1,056)

Net income                    $  968    $   990  $  19,302  $  11,680

Diluted earnings per 
 common share
  Income before 
   extraordinary item         $ 0.07    $  0.07  $    1.36  $    0.98

  Extraordinary item              --         --         --      (0.08)

  Net income                  $ 0.07    $  0.07  $    1.36  $    0.90

Weighted average 
 diluted shares
 outstanding              14,163,937 14,185,289 14,179,475 12,892,784


    The following table sets forth the computation of diluted earnings
per common share on a supplemental pro forma basis(a):

                                                         Year Ended
                                                     December 31, 1999
Numerator:
  Historical income from operations                       $  21,493
  Supplemental pro forma interest expense, net                 (691)
  Supplemental pro forma income tax provision                (7,905)
  Supplemental pro forma net income available 
   to common shareholders                                 $  12,897
Denominator:
  Denominator for supplemental pro forma 
   diluted earnings per common share-    
   weighted average diluted shares outstanding           14,161,509

Supplemental pro forma diluted earnings per common share  $    0.91

    (a) The supplemental pro forma information presents the Company's
        operating results as if the Company's initial public offering
        and the conversion of TREX Company, LLC from a partnership for
        federal income tax purposes to a corporation taxed in
        accordance with Subchapter C of the Internal Revenue Code (a
        "C corporation") occurred on January 1, 1999. The supplemental
        pro forma income taxes reflect federal and state income taxes
        at an assumed 38% combined effective tax rate. The
        supplemental pro forma information excludes (i) interest
        expense relating to debt repaid from the net proceeds of the
        offering, (ii) a $1.1 million extraordinary charge in the year
        ended December 31, 1999 for the early extinguishment of debt
        repaid from the net proceeds of the offering and (iii) a net
        deferred tax liability of $2.6 million in the year ended
        December 31, 1999, recorded by the Company from TREX Company,
        LLC's conversion to C corporation status on April 7, 1999.

    (b) Amounts have been reclassified to reflect the adoption of EITF
        00-10, Accounting for Shipping and Handling Fees and Costs.


                          TREX COMPANY, INC.

                      Consolidated Balance Sheets
                   (In thousands, except share data)

                                           Dec. 31,     Dec. 31, 
                                           1999         2000        
                                                       (unaudited)

ASSETS
Current  assets:
    Cash and cash equivalents              $    --    $     --

    Trade accounts receivable                1,266      10,582

    Inventories                              8,668      23,017

   Prepaid expenses and other assets         1,057         689

    Deferred income taxes                      360         478

          Total current  assets             11,351      34,766

Property, plant, and equipment, net         59,489     113,635

Intangible assets, net                       8,252       7,544

Other                                          211         650


        Total assets                      $ 79,303    $156,595



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
    Trade accounts payable                $  6,416    $ 17,082

    Accrued expenses                         1,737       2,053

    Income taxes payable                       117         574

    Other current liabilities                1,163         664

    Line of credit                           5,714          --

    Current portion of long-term debt          385         697

        Total current liabilities           15,532      21,070

Deferred income taxes                        3,532       5,782

Line of credit                                  --      44,748

Long-term debt                              10,838      15,954

        Total liabilities                   29,902      87,554


Stockholders' equity:
    Preferred stock, $0.01 par value, 
     3,000,000 shares authorized; none issued 
     and outstanding                            --          --

    Common stock, $0.01 par value, 40,000,000 
     shares authorized; 14,120,572 and 
     14,135,060 shares issued and 
     outstanding at December 31, 1999 
     and 2000, respectively                    141         141

    Additional capital                      40,992      41,330

Retained earnings                            8,268      27,570

Total stockholders' equity                  49,401      69,041

Total liabilities and stockholders' equity $79,303    $156,595

--30--muj/ny*