Trex Company to Restate Previously Issued Financial Statements

Trex Company, Inc. (NYSE:TWP) today announced that the valuation allowance related to its deferred tax assets was understated beginning in December of 2007. The Company will therefore restate its financial results for the years 2007 and 2008 and the first three months of 2009.

The restatements will have the cumulative effect of decreasing the Company’s reported net income for 2007 through 2008 by approximately $1.9 million. The effect on the earnings for the first quarter 2009 was not material. The reduction to income will be $1.6 million in 2007 and $0.3 million in 2008. All adjustments are non-cash related and do not impact cash flows. In addition, the adjustments will not affect the Company’s tax loss carryforward.

Additional information about the restatement of the Company’s financial results for the years 2007 and 2008 and the first three months of 2009 will be contained in the Company’s current report on Form 8-K filed today with the Securities and Exchange Commission.

About Trex Company

Trex Company is the nation’s largest manufacturer of composite decking, railing and fencing, with over 15 years of product experience. Built on “green” principles and values, Trex makes its products 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, as well as a truly environmentally responsible choice. In addition, Trex distributes ultra-low maintenance PVC decking under the trademark Trex Escapes™ and PVC trim under the trademark Trex Trim™. For more information, visit the Company’s website, www.trex.com. Trex® is a trademark of Trex Company, Inc., Winchester, Va.

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 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 12, 2009 and its subsequent report on Form 10-Q filed on May 8, 2009 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.

Trex (NYSE:TWP)
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