Press Release

WINCHESTER, Va.--(BUSINESS WIRE)--Aug. 8, 2000-- Trex Company, Inc. (NYSE: TWP), manufacturer of Trex(R) Easy Care Decking(R), today announced net income of $6.1 million, or $0.43 per diluted share, for the second quarter ended June 30, 2000 compared to supplemental pro forma net income of $2.7 million, or $0.19 per diluted share, for the second quarter of 1999.

Revenues for the quarter increased 79.8% to $35.6 million compared to $19.8 million for the second quarter of 1999. Income from operations increased 118.2% to $10.1 million for the second quarter from $4.6 million for the second quarter of last year.

Net income was $13.1 million, or $0.92 per diluted share, for the first half ended June 30, 2000 compared to supplemental pro forma net income of $7.9 million, or $0.56 per diluted share, for the first half of 1999. Revenues for the half increased 74.7% to $73.6 million from $42.1 million in the first half of 1999. Income from operations increased 67.4% to $21.7 million for the first half from $13.0 million for the first half of last year.

Trex Company President Robert Matheny commented, "We are extremely pleased with the consistent execution of our long term growth strategy. While Trex is the standard for non-wood decking, we have only begun to tap into the $2 billion commodity decking market. We continue to expand our manufacturing capacity and distribution coverage to meet strong consumer demand.

"Expanding our capacity to meet this demand continues to be the highest priority. At our Fernley, Nevada facility, we started our fifth line ahead of schedule and the sixth line should begin production within the next several months. Furthermore, construction is underway to expand our Fernley plant with a new 100,000 square foot addition that will accommodate six new manufacturing lines. At the same time, we are building much needed manufacturing capacity at our new plant site in Winchester, Virginia, which will also accommodate six new lines. Ultimately, these facilities will operate 26 lines on a combined basis."

Mr. Matheny continued, "Over the past few years, our marketing program has been constrained by the need to allocate our products. Our objective has been to eliminate this allocation so that we may fully support our loyal dealer base and expand our distribution network. We are making substantial progress in our efforts to reduce the need for allocation. At the same time, we continue the controlled growth of our distribution network. During the quarter, Trex Company added three wholesale distribution locations, bringing the total to 65 distributors, with a dealer base of 2,400. As our expanded capacity comes on line, we hope to more aggressively expand our distribution channels to fulfill customer demand."

During the quarter, Trex Company installed a number of new showcase projects. Examples include commercial boardwalks at the Big Morongo Canyon Preserve in Morongo Valley, CA, the Gulf Islands Nature Seashore in Gulfport, MS and the Clark County Nature Center in Las Vegas, NV. In addition, Trex Company finished the 14th Street Pier with its spectacular view of Manhattan in Jersey City, NJ, the third section of the bike and pedestrian walkway in Boston, MA, and the deck and walkway at the Rocky Mountain National Park in Estes Park, CO. These showcases provide visibility for Trex decking and demonstrate its superior durability compared to ordinary wood decks.

Trex Company's financial performance continues to be noticed in the marketplace. During the second quarter, Trex Company was named as one of the top 100 Hot Growth Companies by Business Week magazine.

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 65 wholesale distribution locations, which in turn sell Trex decking to more than 2,400 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.

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

                           Three Months            Six Months
                           Ended June 30,          Ended June 30,
                           2000        1999        2000        1999


Net sales                  $35,556     $19,775     $73,620     $42,140

Cost of sales               17,543       8,254      37,445      18,196


Gross profit                18,013      11,521      36,175      23,944

Selling, general and
 administrative expenses     7,940       6,905      14,450      10,969

Income from operations      10,073       4,616      21,725      12,975

Interest expense, net        (263)       (287)       (540)     (1,087)

Income before taxes and
 extraordinary items         9,810       4,329      21,185      11,888

Income taxes                 3,729       4,279       8,047       4,279

Income before
 extraordinary item          6,081          50      13,138       7,609

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

Net income (loss)           $6,081    $(1,006)     $13,138     $ 6,553


Fully diluted earnings per
 common share
 Income before
 extraordinary item         $ 0.43      $   --      $ 0.92      $ 0.65

 Extraordinary item             --      (0.07)          --      (0.09)


 Net income (loss)          $ 0.43    $ (0.07)      $ 0.92      $ 0.56


Weighted average fully
 diluted shares
outstanding             14,227,860  13,639,398  14,206,265  11,581,001

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

Three Months Ended Six Months Ended

                               June 30, 1999            June 30, 1999

Numerator:
 Historical income from operations   $ 4,616                  $12,975

 Supplemental pro forma interest
  expense, net                         (196)                    (302)

 Supplemental pro forma income
  tax provision                      (1,680)                  (4,816)


 Supplemental pro forma net
  income available to common
  shareholders                       $ 2,740                  $ 7,857


Denominator:
 Denominator for supplemental
 pro forma fully diluted
 earnings per common
share-weighted average fully
 diluted shares outstanding       14,163,513               14,139,481


 Supplemental pro forma fully
  diluted earnings per common share   $ 0.19                  $  0.56

-- 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.

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