Trex Says 2008 Was an ''Excellent Year'' for the Company

WINCHESTER, VA -- Trex Company, Inc., manufacturer and distributor of Trex decking, railing, fencing and trim, reported net income of $13.6 million for the fiscal year ended December 31, 2008, compared to a net loss of $75.9 million for 2007. The company said net sales for the year amounted to $329 million, almost unchanged from a year earlier.

President and CEO Ronald W. Kaplan commented, "As our results clearly demonstrate, 2008 was an excellent year for Trex, during which we made significant progress in restoring the company to financial health and grew shareholder value based on our four guiding principles – providing a best-in-class product offering, expanding our distribution presence, increasing our brand leadership and advancing our low-cost competitive advantage. Our new products, including Trex Escapes(R) ultra-low maintenance decking and grooved Trex Brasilia(R) with the Trex Hideaway(TM) fastening system, were well received, and the many cost efficiencies, productivity and process improvements we implemented also contributed to the successful progress of our business turnaround. All of us are very proud of the long way Trex has come over the past 12 months, especially given the extremely difficult economic environment.

"Moving forward we will complete the business turnaround that we began a year ago and maintain our focus on long-term growth in shareholder value by responding to consumers' desire for attractive, high quality outdoor living products. We will continue building our exceptional brand recognition, best-in-class products, and leading distribution presence, as well as leveraging our low-cost manufacturing advantage. An important goal will be to provide people more choices that enable them to build decks, railing and fences that are both distinctive and provide a value proposition against traditional wood. We are also assessing strategies that will enable Trex to take advantage of today's tough competitive conditions and gain additional market share.

"While the current economic turmoil makes it difficult to forecast net sales in 2009, we have established a target of $60 million in net sales for the first quarter. This estimate reflects the fact that we expect a shift in purchasing patterns as our customers order based more on pull-through demand due to the current economic conditions and the redesign of our early buy sales program. We expect this to shift sales activity in 2009 from the first to the second and third quarters. Throughout 2009, we will maintain our strong focus on free cash flow through earnings and working capital management, and will keep inventory and capital expenditures low as compared to historical levels."