Elkcorp Management and Board Engaged in Review of Strategic Alternatives

  
    
  
  
    
      ElkCorp (NYSE: ELK) announced today that its management and Board of 
      Directors are engaged in a review of the Company’s 
      strategic alternatives, which could include a possible merger or sale of 
      the Company. The Company has retained UBS Investment Bank to assist in 
      this process.
    
    
      Thomas D. Karol, Chairman and Chief Executive Officer of ElkCorp, said, “ElkCorp’s 
      strong market position, healthy balance sheet and our plan for continued 
      growth in all three of our platforms clearly position us as a leader in 
      the building products industry. That said, several third parties have 
      indicated interest in the Company, and our management and the Board 
      believe that it is prudent to evaluate all opportunities for maximizing 
      shareholder value.” Karol added, “We 
      are committed to doing what we believe is best for the Company and its 
      shareholders and have engaged financial advisors to assist us in a 
      thoughtful and comprehensive process.”
    
    
      The Company has not set a definitive timetable for completion of its 
      evaluation and further there can be no assurances that the evaluation 
      process will result in any transaction. The company does not intend to 
      disclose developments regarding its evaluation of strategic alternatives 
      unless and until its Board of Directors approves a definitive 
      transaction.
    
    
      In connection with the strategic review, ElkCorp’s 
      Board of Directors has adopted an amendment to the Company's Shareholder 
      Rights Agreement to reduce, effective today, the beneficial ownership 
      threshold at which the rights will become exercisable from 15% to 10%. 
      Any shareholder that beneficially owns 10% or more of the Company’s 
      stock as of today will not be deemed to have crossed the threshold 
      unless or until such shareholder acquires beneficial ownership of 
      additional Company stock.
    
    
      About ElkCorp
    
    
      ElkCorp, through its subsidiaries, manufactures Elk brand premium 
      roofing and building products (90% of consolidated revenue) and provides 
      technologically advanced products and services to other industries. Its 
      common stock is listed on the New York Stock Exchange (NYSE: ELK). See www.elkcorp.com 
      for more information.
    
  
ElkCorp (NYSE: ELK) announced today that its management and Board
of Directors are engaged in a review of the Company's strategic
alternatives, which could include a possible merger or sale of the
Company. The Company has retained UBS Investment Bank to assist in
this process.

   Thomas D. Karol, Chairman and Chief Executive Officer of ElkCorp,
said, "ElkCorp's strong market position, healthy balance sheet and our
plan for continued growth in all three of our platforms clearly
position us as a leader in the building products industry. That said,
several third parties have indicated interest in the Company, and our
management and the Board believe that it is prudent to evaluate all
opportunities for maximizing shareholder value." Karol added, "We are
committed to doing what we believe is best for the Company and its
shareholders and have engaged financial advisors to assist us in a
thoughtful and comprehensive process."

   The Company has not set a definitive timetable for completion of
its evaluation and further there can be no assurances that the
evaluation process will result in any transaction. The company does
not intend to disclose developments regarding its evaluation of
strategic alternatives unless and until its Board of Directors
approves a definitive transaction.

   In connection with the strategic review, ElkCorp's Board of
Directors has adopted an amendment to the Company's Shareholder Rights
Agreement to reduce, effective today, the beneficial ownership
threshold at which the rights will become exercisable from 15% to 10%.
Any shareholder that beneficially owns 10% or more of the Company's
stock as of today will not be deemed to have crossed the threshold
unless or until such shareholder acquires beneficial ownership of
additional Company stock.

   About ElkCorp

   ElkCorp, through its subsidiaries, manufactures Elk brand premium
roofing and building products (90% of consolidated revenue) and
provides technologically advanced products and services to other
industries. Its common stock is listed on the New York Stock Exchange
(NYSE: ELK). See www.elkcorp.com for more information.