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Trex Company Expands into Decking Substructures with Acquisition of Iron Deck (R)

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WINCHESTER, Va., May 02, 2011 (BUSINESS WIRE) — Trex Company, Inc. (NYSE: TREX), the world’s largest manufacturer of wood-alternative decking and railing products, today announced it has acquired substantially all of the assets of Iron Deck Corporation, a Denver-based manufacturer of steel deck framing systems.

Iron Deck framing systems are manufactured of dual-coated, galvanized steel, which offers superior durability, longevity and stability when compared to traditional wood substructures. The product is protected by a 25-year limited warranty – surpassing pressure-treated lumber, which is chemically treated to resist decay for a maximum of only 15 years. Iron Deck materials also are composed of 25 percent recycled material.

“The Trex name is already synonymous with high-performance outdoor living products, and this product extension will enable us to continue gaining market share in the rapidly growing ultra low-maintenance category, while positioning our brand for strategic expansion into the $1.9 billion deck substructure market,” said Ron Kaplan, chairman, president and CEO of Trex. “Composite materials are increasingly taking share from wood decking and railing, and we see the same opportunity for significant market penetration against wooden deck substructures.

“The combination of Iron Deck’s superior product technology and Trex’s high-performance wood-alternative decking and railing creates a strong value proposition for both our consumers and professional partners,” said Kaplan. “As the industry leader, we feel confident that Trex can drive overall product awareness and penetration of the wood-alternative deck substructure category.”

Terms of the transaction were not disclosed. Trex expects the acquisition to be accretive to earnings in the first year. Trex will manufacture the steel deck framing at its Fernley, Nevada and Winchester, Virginia facilities and will market the product under the brand name Trex Elevations(TM).

Forward-Looking Statements

The statements in this press release regarding the Company’s expected future performance and condition 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 costs associated with the development and launch of new products and the market acceptance of such new products;the sensitivity of the Company’s business to general economic conditions; the Company’s ability to obtain raw materials at acceptable prices; the Company’s ability to maintain product quality and product performance at an acceptable cost; the level of expenses associated with product replacement and consumer relations expenses related to product quality; 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 9, 2011 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. 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.

About Trex Company

Trex Company is the world’s largest manufacturer of wood-alternative decking and railing, with more than 20 years of product experience. Stocked in more than 5,500 retail locations throughout the world, Trex(R) outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. For more information, visit trex.com.

SOURCE: Trex Company, Inc.

Trex Company, Inc.
James E. Cline, 540-542-6300
VP and Chief Financial Officer
or
Lippert/Heilshorn & Associates
Harriet Fried, 212-838-3777

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