Trex Responds to Counterclaim
WINCHESTER, Va. - Trex Company, Inc. (NYSE:TWP), manufacturer of Trex(R) Easy Care Decking(TM), today responded to the counterclaim filed by former distributor Coastal Forest Products of Bedford, NH.
The Coastal Forest Products suit is in response to a lawsuit filed by Trex against Coastal on March 2, 1999 for the failure of Coastal to pay invoices for products sold by Trex. Trex discontinued the relationship with Coastal Forest Products in October of 1997. Trex's business in the Northeast region of the United States increased more than 50% in 1998 compared to 1997.
The response and counterclaim, which was filed on July 30, 1999 in the Circuit Court of Frederick County, alleges various claims against Trex.
Robert Matheny, President, commented "This counterclaim is a reaction to a suit we filed against Coastal Forest Products. The counterclaim is without merit and we are confident the courts will agree with our position. Trex maintains strong relationships with all 55 of its current wholesale distributors and enjoys an increasing customer base and revenue growth in excess of 40% per year over the past two years. The quality of our product remains unmatched in the marketplace, and Trex is the only wood alternative decking to receive a product building code listing either from the National Evaluation Service or from any of the three NES regional members that establish construction standards in the U.S."
Trex Company is the nation's largest manufacturer of wood alternative decking products, which are marketed under the brand name Trex(R). Trex is a Wood-Polymer Lumber(TM) that offers an attractive appearance and the workability of wood without the ongoing need for protective sealants or repairs. Trex 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 55 wholesale distribution locations, which in turn sell Trex to more than 2,000 independent contractor-oriented retail lumberyards across the United States. Additional information on Trex Company, Inc. can be found at www.trex.com.
Trex, Easy Care Decking and Wood-Polymer Lumber are either federally registered trademarks, trademarks or trade dress of Trex Company, Inc., Winchester, VA.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Trex Co.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the company's filings with the Securities and Exchange Commission.
Contact: Trex Company, Inc. Robert G. Matheny President (540)-678-4070 or Lippert/Heilshorn & Associates John Nesbett/Vince Daniels (212)-838-3777