Bankruptcy Court Approves USG Disclosure Statement.

CHICAGO -- USG Corporation (NYSE:USG) announced that the Honorable Judith Fitzgerald of the United States Bankruptcy Court for the Western District of Pennsylvania has approved the company's disclosure statement and plan voting procedures, clearing the way for the company to begin soliciting votes from asbestos personal injury claimants for its plan of reorganization. USG filed the disclosure statement and plan of reorganization in connection with its plan to emerge from Chapter 11 later this year. The plan is supported by the official committee representing asbestos personal injury claimants and the court-appointed representative for future asbestos personal injury claimants, as well as the official committees representing unsecured creditors and stockholders.

USG announced on January 30, 2006 an agreement to resolve the asbestos personal injury claims in its Chapter 11 reorganization case. Under the agreement, USG would establish and fund a personal injury trust to pay asbestos personal injury claims. USG's bank lenders, bondholders and trade suppliers would be paid in full, with interest. Stockholders would retain their shares in the company. The terms of the agreement are contained in the plan of reorganization and disclosure statement. After voting on the plan, the plan will require approval by both the Bankruptcy Court and the District Court that oversees the cases.

Under the court's order, voting on the plan runs until June 2, 2006 and any objections to the plan must be filed by May 26, 2006. Confirmation hearings are scheduled for June 15 and 16, 2006, in Pittsburgh.

USG Corporation is a Fortune 500 company with subsidiaries that are market leaders in their key product groups: gypsum wallboard, joint compound and related gypsum products; cement board; gypsum fiber panels; ceiling panels and grid; and building products distribution. For more information about USG Corporation, visit the USG Web Site at www.usg.com.

This press release contains forward-looking statements related to management's expectations about future conditions. The effects of USG's Chapter 11 reorganization and the conduct, outcome and costs of the Chapter 11 cases, including the ultimate outcome and costs associated with the corporation's agreement to resolve its asbestos liabilities, may differ from management's expectations. Actual business, market or other conditions may also differ from management's expectations and accordingly affect the corporation's sales and profitability or other results. Actual results may differ due to various other factors, including economic conditions such as the levels of construction activity, employment levels, interest rates, currency exchange rates and consumer confidence; competitive conditions such as price and product competition; shortages in raw materials; increases in raw material and energy and employee benefit costs; loss of one or more major customers; and the unpredictable effects of acts of terrorism or war upon domestic and international economies and financial markets; and acts of God. USG Corporation assumes no obligation to update any forward-looking information contained in this press release.