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Trex Company Restoring Production After Fire in Nevada Plant

FERNLEY, Nev.--(BUSINESS WIRE)--June 7, 2000--Trex Company, Inc. (NYSE:TWP), manufacturer of Trex(R) Easy Care Decking(R), suffered a shutdown in production this week in its Fernley, Nevada plant as a result of an electrical fire on Sunday afternoon.

The damage was contained to a small portion of the plant containing electrical equipment, and there were no injuries. However, the fire caused the plant's four active production lines to be shut down. Production was restored to lines one and two by early Tuesday morning. Lines three and four are expected to be fully operating by this weekend.

"Overall, we were very fortunate that no one was hurt, and that the fire was contained quickly," said Trex Company President Robert Matheny. "We are now focusing on actions to minimize any disruptions to customer deliveries. Of course, we are covered by insurance for fire damage as well as business interruption, so we do not expect a significant financial impact. We still expect to meet financial targets for the quarter. We also do not expect this incident to delay the installation of production lines five and six."

Trex Company has previously announced a number of major expansion projects in order to meet continuing strong demand. In addition to lines five and six, construction will begin late this year on a 100,000 square foot addition to this facility. The building addition will accommodate six new manufacturing lines, bringing the total in Fernley to 12 lines. The Company is also building additional manufacturing capacity at its plant in Winchester, Virginia.

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 62 wholesale distribution locations, which in turn sell Trex decking to more than 2,300 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(R) Easy Care Decking(R) and Wood-Polymer 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.

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