Wienerberger Announces US $260 Million Brick Acquisition in US.

VIENNA, Austria--(BUSINESS WIRE)--June 21, 1999--

Wienerberger Baustoffindustrie AG, the leading producer of bricks worldwide, announced today that it has signed a definitive agreement to acquire General Shale LLC, the US brick operations of Etex/Marley Group, for US$ 260 million debt free. The transaction is subject to regulatory approvals and is expected to close in July 1999.

-- Wienerberger agrees to acquire leading US brick manufacturer

General Shale for US $ 260 m from Etex/Marley Group -- General Shale, with headquarters in Tennessee, runs 25 plants in

eight states which account for approximately 12 % market share

and the second largest market position in the US market -- A decisive step in strengthening the leading Nr. 1 brick position

worldwide -- Platform for further development in the US building market

established

Wienerberger Baustoffindustrie AG announces that it has signed a definitive agreement to acquire General Shale LLC, the US brick operations of Etex/Marley Group, for US$ 260 million debt free. The transaction is subject to regulatory approvals and is expected to close in July 1999.

General Shale is the second largest manufacturer of facing bricks in the United States with approximately 12 % market share. The company's manufacturing facilities are located in two key regions, the Southeast and Midwest. General Shale operates 25 plants in eight states. Of these, 18 produce brick, five concrete block, one aggregates, and another one sand. The company has historically maintained a high level of capital expenditure. Therefore, technology and product quality are of highest standards. The company is headquartered in Johnson City, Tennessee.

In the latest twelve months, ended March 31, 1999, General Shale reached sales of US$ 163.7 million, EBITDA of US$ 37.9 million and EBIT of US$ 26.2 million. In 1998, General Shale had capacity of approximately 1.1 billion SBEs, standard brick equivalents. The company employs 1.437 people.

Wienerberger is the worldwide leading producer of bricks and also has leading positions in the pipe business. The acquisition marks the Company's entry into the US market, which due to its favourable demographic trends is expected to remain one of the strong growing markets in the world. Wienerberger believes that its expertise in the brick industry, combined with General Shale's high quality management team and efficient production facilities will enable Wienerberger to grow this business both organically and by acquisitions.

Erhard Schaschl, CEO of Wienerberger, said: "General Shale represents a unique opportunity for Wienerberger to enter the largest single facing brick market in the world as well as an ideal platform for further expansion in this market later on. We believe we have achieved a fair price for General Shale's high quality assets. The exchange of know how should then bring higher margins for the Wienerberger Group. Wienerberger is now running more than 210 brick, tile and pipe plants in Europe, Asia and, now also in North America."

Wolfgang Reithofer, Deputy Chairman, added: "With a firmly established market position in Europe, the United States are Wienerberger's next logical step in expanding our core brick business globally. We look forward to building up a strong position in the US market as we already did in Europe. General Shale's strong management team will complement our expertise in the brick industry."

Wienerberger was advised by Salomon Smith Barney in this acquisition. Etex/Marley Group was advised by Schroder & Co. Inc.

Wienerberger Baustoffindustrie AG, The Managing Board Vienna, June 21st, 1999