Press Release

WINCHESTER, Va.--(BUSINESS WIRE)--Feb. 16, 2000--Trex Company, Inc. (NYSE:TWP), manufacturer of Trex(R) Easy Care Decking(R), today announced financial results for the fourth quarter and year ended December 31, 1999.

Revenues for the 1999 fourth quarter increased 125% to $12.2 million compared to $5.4 million in the fourth quarter of 1998. Income from operations for the 1999 fourth quarter increased to $1.8 million from a loss from operations of $0.7 million. Net income for the fourth quarter increased to $1.0 million from a loss of $1.4 million for the 1998 fourth quarter. Supplemental pro forma net income for the 1999 fourth quarter increased to $1.0 million, or $0.07 per share, compared to a supplemental pro forma net loss of $0.4 million, or loss of $0.03 per share, for the 1998 fourth quarter.

Revenues for the year ended December 31, 1999 increased 59% to $74.3 million compared to $46.8 million for the year ended December 31, 1998. Income from operations for the year increased 96% to $21.5 million from $11.0 million. Supplemental pro forma net income for the year increased 85% to $12.9 million, or $0.91 per share, compared to supplemental pro forma net income last year of $7.0 million, or $0.49 per share.

The Company completed a reorganization on April 7, 1999 and its initial public offering of common stock on April 13, 1999 and incurred related, one-time charges of $2.6 million for deferred taxes and $1.1 million for the early extinguishment of debt. Net income for the year ended December 31, 1999, including these charges, was $11.7 million compared to $8.5 million for the year ended December 31, 1998.

Customer demand for Trex decking continues to exceed the Company's production capacity. In order to satisfy demand Trex Company opened a second manufacturing site in Fernley, Nevada with initial shipments from the first two production lines occurring in the third quarter. These two lines ran well in the fourth quarter and contributed significantly to results. The Company started the third production line during December 1999 and the fourth during January 2000. Components for installing lines five and six have been received and start-up will be ready for the second half of 2000.

Trex Company also announced that along with the increase in capacity it has increased its wholesale distribution locations to 60. The Company expects to increase its dealer base by 10% this spring and has targeted 2,500 dealers by the end of 2000.

During the fourth quarter Trex Company introduced a new color called Madeira to complement the current line of Winchester Grey and Natural. Initially Madeira will only be available in the western United States but will be rolled out to additional areas as the Company increases capacity. Trex Company also anticipates introducing a rail post product in the second half of this year.

Robert Matheny, President, stated, "1999 was a very successful year for Trex Company. In addition to posting record sales and earnings we completed our initial public offering, strengthened the Trex brand, increased our distributor base and expanded our manufacturing capacity. Management remains committed to increasing shareholder value and we are very optimistic about the growth prospects for the non-wood decking market and for Trex decking."

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 60 wholesale distribution locations, which in turn sell Trex decking to more than 2,000 independent contractor-oriented retailer lumberyards across the United States. Company sales have increased from $3.5 million in 1993 to $74.3 million in 1999.

Trex, Easy Care Decking and Wood-Polymer Lumber are either federally registered trademarks or trade dress 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 8-K filed with the Securities and Exchange Commission on May 25, 1999 discusses some of the important factors that could cause the Company's actual results to differ materially from those in these forward looking statements. -0-

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

                        Quarter Ended Dec. 31,     Year Ended Dec. 31,
                          1999         1998         1999         1998
                          ----         ----         ----         ----

Net sales              $12,250      $ 5,432      $74,345      $46,818

Cost of sales            6,928        3,144       34,482       22,956
                       -------      -------      -------      -------

Gross profit             5,322        2,288       39,863       23,862
Selling, general and
 administrative
 expenses                3,515        2,995       18,370       12,878
                       -------      -------      -------      -------

Income (loss) from
 operations              1,807         (707)      21,493       10,984

Interest expense, net     (208)        (672)      (1,476)      (2,526)
                       -------      -------      -------      -------

Income (loss) before
 taxes and
 extraordinary item      1,599       (1,379)      20,017        8,458
Income taxes               607           --        7,281           --
                       -------      -------      -------      -------
Income (loss) before
 extraordinary item        992       (1,379)      12,736        8,458
Extraordinary loss on
 the early
 extinguishment of
 debt, net of taxes         --           --       (1,056)          --
                       -------      -------      -------      -------

Net income (loss)      $   992      $(1,379)     $11,680      $ 8,458
                       =======      =======      =======      =======


Basic earnings (loss)
 per common share
   Income (loss)
    before
    extraordinary
    item               $  0.07      $ (0.16)     $  0.98      $  0.85
   Extraordinary
    item                    --           --        (0.08)          --
                       -------      -------      -------      -------
   Net income (loss)   $  0.07      $ (0.16)     $  0.90      $  0.85
                       =======      =======      =======      =======

Weighted average
 shares outstanding 14,120,247    9,500,000   12,848,571    9,500,000
                    ==========    =========   ==========    =========

Supplemental Pro Forma
 Information:(1)
                        Quarter Ended Dec. 31,     Year Ended Dec. 31,
                          1999         1998         1999         1998
                          ----         ----         ----         ----

Historical income
 (loss) from
 operations            $ 1,807      $  (707)     $21,493      $10,984
Supplemental pro
 forma interest
 (expense) income,
 net                      (208)          22         (691)         249
Supplemental pro
 forma income
 (taxes) benefit          (608)         260       (7,905)      (4,269)
                       -------      -------      -------      -------
Supplemental pro
 forma net income
 (loss)                $   991      $  (425)     $12,897      $ 6,964
                       -------      -------      -------      -------

Supplemental pro
 forma earnings
 (loss) per share      $  0.07      $ (0.03)     $  0.91      $  0.49
                       -------      -------      -------      -------

Supplemental pro
 forma weighted
 average shares
 outstanding(2)     14,120,247   14,115,450   14,117,297   14,115,450
                    ==========   ==========   ==========   ==========

(1) 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 of each period presented. 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 of $.7 million for the quarter ended December 31, 1998 and $2.8 million and $.8 million for the years ended December 31, 1998 and 1999, respectively, 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.

(2) Assumes that the 9,500,000 shares of Common Stock issued by the Company in exchange for junior units in TREX Company, LLC on April 7, 1999 and the 4,615,450 shares subsequently sold by the Company in its initial public offering were outstanding for each period presented.

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     CONTACT: Trex Company, Inc., Winchester
              Robert G. Matheny
              President
              540/678-4070
                    or
              Lippert/Heilshorn & Associates, New York
              John Nesbett/Vince Daniels
              212/838-3777