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Headwaters Incorporated Announces Construction Completed on Two FlexCrete Production Facilities

Jan, 25 2005

Headwaters Incorporated Announces Construction Completed on Two FlexCrete Production Facilities (SOUTH JORDAN, Utah) -- Headwaters Incorporated (HDWR) announced that it has completed the construction of two FlexCrete(TM) manufacturing facilities. One facility, owned by a Headwaters subsidiary, is located in Palestine, Texas, and the second, owned by the Navajo Housing Authority, is located in Page, Ariz. The Palestine facility has begun initial production with full operations expected to begin by the end of March. The Page facility is currently in the pre-production commissioning and testing stage, which is expected to last two to four weeks with full operations to begin later in the quarter. Headwaters, through agreements with the Navajo Housing Authority, has built the Page plant and will operate, provide management services, marketing and maintain rights to perform research and development at the Page plant. Headwaters will be compensated by the Navajo Housing Authority through a technology license, facility use, management and sales agreements. Headwaters' FlexCrete product is a lightweight, fire-proof, cost-effective building product made using fly ash. Fly ash is a by-product produced when coal is burned in today's modern electric-generating plants. The noncombustible minerals that naturally occur in coal form fly ash, when burned at high temperatures. Fly ash can replace a portion of portland cement used in producing concrete. Fly ash reacts with lime that is produced by the hydration of cement, creating a more durable binder that holds concrete together. Up to 60% of FlexCrete's total volume is fly ash, replacing portland cement and sand that is used by traditional methods. The FlexCrete product will be manufactured in blocks similar to traditional cement masonry units and also in both reinforced and unreinforced building panels. About Headwaters Incorporated Headwaters Incorporated is a world leader in creating value through innovative advancements in the utilization of natural resources. Headwaters is a diversified growth company providing products, technologies and services to the energy, construction and home improvement industries. Through its alternative energy, coal combustion products, and building products businesses, the company earns a growing revenue stream that provides the capital needed to expand and acquire synergistic new business opportunities. Pro Forma Information The pro forma financial information is presented for illustrative purposes only and does not purport to be indicative of the results of operations and which actually would have resulted had the acquisitions occurred on Oct. 1, 2003, nor is it indicative of the results that may be expected in future periods. The pro forma adjustments are based upon information and assumptions available as of the date hereof. Forward-Looking Statements Certain statements contained in this report are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe harbor created thereby. Forward-looking statements include Headwaters' expectations as to the managing and marketing of coal combustion products, the production and marketing of building materials and products, the licensing of technology and chemical sales to alternative fuel facilities, the receipt of product sales, license fees and royalty revenues, the development, commercialization, and financing of new technologies and other strategic business opportunities and acquisitions, and other information about Headwaters. Such statements that are not purely historical by nature, including those statements regarding Headwaters' future business plans, the operation of facilities, the availability of tax credits, the availability of feedstocks, and the marketability of the coal combustion products, building products, and synthetic fuel, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Actual results may vary materially from such expectations. Words such as "expects," "anticipates," "targets," "goals," "projects," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward looking. In addition to matters affecting the coal combustion product, alternative fuel, and building products industries or the economy generally, factors which could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the captions titled "Forward-looking Statements" and "Risk Factors" in Item 7 in Headwaters' Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2004, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses. Although Headwaters believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors. Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Our Internet address is www.headwaters.com. There we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our reports can be accessed through the investor relations section of our Web site. SOURCE: Headwaters Incorporated Headwaters Incorporated, South Jordan Sharon Madden, 801-984-9400 or Financial Relations Board Tricia Ross, 617-520-7064 (Analysts)