Press Release

WINCHESTER, Va.--(BUSINESS WIRE)--May 30, 2007--Trex Company, Inc. (NYSE: TWP), manufacturer of Trex(R) decking, railing and fencing, today announced that it expects net sales for the first half of 2007 to be in the range of $215 to $225 million and net income for the first half of 2007 to be between $0.40 and $0.50 per diluted share. For the full year 2007, the Company expects net sales to be in the range of $330 to $350 million.

Chairman and Chief Executive Officer Anthony J. Cavanna commented, "Despite the challenging market and uncertain economic conditions that exist in the homebuilding and remodeling sectors, our net sales have generally remained on plan for the first half of 2007. However, our bottom-line results have continued to be impacted by lower-than-expected plant productivity and higher-than-expected plant overhead expenses related to our focus on quality. In addition, net income is being adversely affected by increasing product replacement and consumer relations costs related to product quality, which have been higher than anticipated. This combination of factors is leading us to revise our financial guidance for the first six months of 2007.

"As discussed in our first-quarter earnings announcement, we expect to begin realizing the benefits of our strategic productivity projects through improved quality product at lower manufacturing cost in the second half of 2007. Although our investment in quality and reduced cost is taking longer than expected, where installed, our new equipment is providing the results we intended. In addition, we remain pleased with the progress of our consumer branding efforts, Trex's positioning in the pro lumberyard channel and our expanded position in the big box channel, which has enhanced our brand awareness and made our products readily available to more consumers. We are also encouraged by the interest being generated by our new Trex Contours(TM) line of decking and Trex Seclusions(R) privacy fencing system.

"Nonetheless, given the uncertainty surrounding the direction of the homebuilding and remodeling markets, we are also revising our net sales guidance for the full year and, given the uncertainty regarding the cost of our quality programs, the timing of the productivity improvements we expect to achieve, and our level of plant utilization in the second half of 2007, we are withdrawing our prior full year 2007 earnings guidance and are not providing full year earnings guidance at this time."

About Trex Company

Trex Company is the nation's largest manufacturer of composite decking, railing and fencing, with over 15 years of product experience. Products are marketed under the brand name Trex(R). Made from a unique formulation of reclaimed wood and plastic, combined through a proprietary process, Trex decking, railing and fencing offer significant design flexibility with fewer ongoing maintenance requirements than wood. For more information, visit the Company's website, www.trex.com. Trex(R), Trex Contours(TM), and Trex Seclusions(R) 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 projections of net sales, net income, earnings per share and costs, its anticipated financial condition, the expected effects of its efforts to enhance product quality and lower manufacturing costs, 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 sensitivity of the Company's business to general economic conditions and to conditions in the homebuilding and remodeling sectors, the Company's ability to obtain raw materials at acceptable prices, the Company's ability to increase production levels to meet increasing demand for its products, the highly competitive markets in which the Company operates, the Company's ability to manufacture products at an acceptable rate, yield and cost, and the Company's ability to achieve and maintain acceptable product quality standards. The Company's report on Form 10-K filed with the Securities and Exchange Commission on April 2, 2007 and its subsequent filing on Form 10-Q for the first quarter of 2007 discuss 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 expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Trex Company, Inc.
Paul Fletcher, Chief Financial Officer, 540-542-6300
Or
Lippert/Heilshorn & Assoc.
Harriet Fried, 212-838-3777

SOURCE: Trex Company, Inc.