WINCHESTER, Va.--(BUSINESS WIRE)--Jan. 16, 2009--Trex Company, Inc. (NYSE: TWP), the nation's leading manufacturer and
distributor of wood alternative decking, railing, fencing and trim,
responded to a class action suit filed in Washington by a plaintiffs'
class action law firm alleging certain product defects.
In response to the claims of the case, which focus on product surface
flaking, Ronald Kaplan, president and CEO of Trex Company, noted that,
"Trex has fully and publicly disclosed that a manufacturing problem
affected a small percentage of product manufactured in its Fernley,
Nevada plant beginning in 2003. This issue was entirely isolated to
parts of the West Coast, only affected a small percentage of Trex
decking materials produced in the Nevada plant, and has since been
remediated."
According to Kaplan, Trex took a $45 million warranty reserve in the
third quarter of 2007, and has honored - and continues to honor - its
warranty with respect to all affected product.
Kaplan further commented, "We believe we have fully met our obligations
to our customers and that these claims are completely without merit.
These class action firms make their livings initiating speculative
lawsuits merely as a way of leveraging settlements that result in large
attorneys' fees awards. We believe we have been wrongfully targeted in
this case and, without exception, we stand firmly behind our warranty.
"We trust the court will recognize this case for what it is - an
unconscionable and irresponsible abuse of the legal system," added
Kaplan. "We stand proudly behind our award-winning decking, railing,
fencing and trim products and we look forward to having this unnecessary
distraction removed so that we can continue to focus on delivering the
highest quality products to our valued customers."
For more information about Trex Company, visit www.trex.com.
About Trex Company
Trex Company is the nation's largest manufacturer of composite decking,
railing, fencing and trim, 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, fencing and trim 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(R) and PVC trim under the trademark Trex
Trim(TM). For more information, visit the Company's website, www.trex.com.
Trex(R), Trex Escapes(R) and Trex Trim(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 projections of net sales,
net income, earnings per share and costs, 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 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 17, 2008 and its subsequent reports on
Form 10-Q filed on May 9, 2008, August 6, 2008 and November 4, 2008
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.
CONTACT: Media:
L.C. Williams & Associates
Heather Hahn or Allison Kurtz, 800-837-7123 or 312-565-3900
hhahn@lcwa.com or akurtz@lcwa.com
or
Investors:
Lippert/Heilshorn & Associates
Harriet Fried, 212-838-3777
hfried@lhai.com
Source: Trex Company
