Fibreboard to Build New Vinyl Siding Manufacturing Plant.

WALNUT CREEK, Calif.--(BUSINESS WIRE)--June 11, 1996--Fibreboard Corp. (AMEX:FBD) today announced its intent to construct a new vinyl siding manufacturing plant.

The plant, which is expected to be approximately 200,000 square feet and located in the south central section of the United States, will increase the company's current vinyl siding manufacturing capacity by 40 percent. Additionally, Fibreboard announced plans to increase the blending capacity of its Claremont, North Carolina, vinyl siding manufacturing facility. The company also announced that it has signed letters of intent to acquire two building product distribution centers.

Commenting on the planned manufacturing and distribution expansion, John D. Roach, Fibreboard's Chairman and Chief Executive Officer, said, "As a result of our purchase of Norandex in 1994, Fibreboard became the seventh largest vinyl siding manufacturer in the United States. By year-end 1995, we had moved up to the fifth largest vinyl siding manufacturer in North America due to our acquisition of Vytec Corporation and expansion of Norandex's manufacturing facility. Further expansion of our vinyl siding production capacity is necessary to meet the extremely strong demand for the Norandex product offering. Within two years, our goal is to be among the top three producers in this exciting segment of the building products industry.

"After review of several alternatives, we determined that building a new facility will provide the most cost effective solution. Our goal is to maintain the same standards of quality and efficiencies of our existing Norandex plant. In addition, this new plant will reduce our distribution costs as we serve Norandex's rapidly growing southeastern and southwestern distribution outlets. Completion of the plant is expected by mid-1997 and is expected to cost approximately $15 million. Expected revenues at full capacity utilization should approach $50 million, and pretax profit margins should exceed 15 percent.

"Productivity improvements in our Claremont, N.C., vinyl siding facility have enabled us to expand capacity. Our plans to increase blending and raw material handling capabilities of the plant by 15 percent will permit us to realize the potential of our extruding equipment, thereby increasing plant capacity from 1.9 million to 2.2 million squares annually. The improvements are expected to be installed at year end and will be operational early in 1997.

"We are also pleased to announce that we have signed letters of intent to purchase two building product distribution centers located in Bismarck, North Dakota and in Billings, Montana. These acquisitions are expected to be consummated in the third quarter at a combined purchase price gross for assets of approximately $5 million and revenues of $8 million. These additions will bring the total number of distribution outlets up to 104 units in 32 states. Both of these centers will allow Fibreboard to introduce its comprehensive residential vinyl siding product line into previously untapped regions. These acquisitions and our expanded plant capacity reflect Fibreboard's commitment to grow and extend our market leadership aggressively in the building products industry," Roach concluded.

Headquartered in Northern California, Fibreboard Corp. is a leader in the building products industry, manufacturing residential vinyl products and industrial insulation. Building products operating groups include Norandex, Vytec and Pabco. Its vinyl products business operates an extensive multi-state distribution network for exterior building products. The company also owns and operates three California resorts: Northstar-at-Tahoe, an all season ski and golf resort and conference center, and Sierra-at-Tahoe and Bear Mountain Ski Resort, both day ski facilities.

CONTACT: Fibreboard Corp., Walnut Creek

Stephen L. DeMaria, 510/274-0700

or

Financial Relations Board

Hannah Bruce/General Information

Sue Caulton Dooley/Investor Contact, 415/986-1591