/C O R R E C T I O N -- NCI Building Systems, Inc./

In the news release, NCI Building Systems (NYSE: NCS) Reports Third- Quarter Results, issued yesterday, Aug. 31, by NCI Building Systems, Inc. over PR Newswire, the following financial table has been updated, and should read as follows:










HOUSTON, Aug. 31  /PRNewswire-FirstCall/ -- NCI Building Systems, Inc. (NYSE:NCS) today announced financial results for the third quarter and nine months ended July 30, 2005.  Sales were $292.7 million for the third quarter compared with $295.8 million for the third quarter of fiscal 2004. Net income for the third quarter of fiscal 2005 was $14.7 million, or $0.70 per diluted share, up from $8.4 million, or $0.41 per diluted share, for the third quarter of fiscal 2004.  Results for the third quarter of fiscal 2004 include a charge for debt refinancing costs of $9.9 million ($5.8 million, or $0.28 per diluted share, after tax).

Sales for the first nine months of fiscal 2005 were $788.5 million compared with $765.9 million for the first nine months of fiscal 2004.  Net income increased to $36.1 million, or $1.73 per diluted share, for the latest nine-month period from $21.9 million, or $1.09 per diluted share, for the comparable period in fiscal 2004.  Net income for the first nine months of 2005 includes the effect of an after-tax benefit of $1.1 million, or $0.06 per diluted share, related to more favorable group medical claims experience than expected, which was recognized in the first quarter of fiscal 2005.

A.R. Ginn, Chairman and Chief Executive Officer of NCI, commented, "Our third-quarter results met our earnings guidance in an environment that remains challenging.  Our performance is attributable to the continued expansion of both the sales and operating profit margin of our Engineered Buildings business compared with the comparable prior-year quarter. We were also pleased that even with the seasonal increase in Buildings sales from the second quarter of 2005, our bookings for the quarter enabled us to record modest growth in our backlog of 4.3%, which ended the third quarter at $204 million. Third-quarter results for our components business and, consequently, our coatings business, continued to reflect our adherence to a disciplined pricing strategy in a period of less-than-anticipated industry demand.

"Illustrating the overall industry environment, McGraw-Hill's Dodge Report indicates that square footage of new nonresidential construction projects in our industry segments declined 8.3% for calendar 2005 through July compared with the same period in 2004. The Dodge Report notes sequential improvements in square footage for the months of June and July and anticipates that growth in square footage throughout the second half of calendar 2005 will bring total square footage for the year to a level approximating the total for 2004.  Our results remained stronger than general industry trends, although the year-to- date decline in industry square footage, as well as the improvements as the third quarter progressed, were relatively consistent with our experience.

"The profitability of our operations produced a further strengthening of our financial position during the third quarter.  Our cash flow from operations for the nine months ending July 30, 2005 was up $46.3 million to $70.2 million compared to $23.9 million for the nine months ending July 31, 2004.  Furthermore, our trailing twelve months adjusted EBITDA increased by 28.9% to 140.3 million over the same period in 2004. As a result, although we completed the third quarter with debt to total capitalization of 44.9% compared with 35.1% at October 30, 2004, our net debt (debt minus cash) to total capitalization (net debt plus shareholders' equity) has improved to 28.0% at the end of the third quarter compared with 30.9% at the end of the second quarter of fiscal 2005 and 34.2% at the end of fiscal 2004.

"Based on NCI's results of operations for the third quarter and first nine months of fiscal 2005, as well as lower expectations for industry performance during the full fiscal year, we today established our guidance for fourth- quarter net income per diluted share in a range of $0.93 to $1.03.  As a result of this guidance, we have reduced our guidance for full-year fiscal 2005 to a range of $2.60 to $2.70.  Our guidance excludes the effect of the first-quarter after-tax benefit of $1.1 million, or $0.06 per diluted share."

Mr. Ginn concluded, "We continue to expect to achieve record sales, net income and net income per share for fiscal 2005.  In spite of the weakness in the nonresidential construction industry for the first seven months of calendar 2005, combined with reduced visibility for our fiscal fourth quarter, we remain cautiously optimistic that our fourth-quarter results will improve significantly on a sequential-quarter basis over the third quarter just ended. Supporting these expectations, the strengths that underlie NCI's position of industry leadership -- the broadest line of innovative metal construction products; commitment to customer service; an integrated, nationwide network of plants and distribution centers; and state-of-the-art design and manufacturing capabilities producing the highest quality products and the lowest cost infrastructure -- have positioned us well to continue outperforming the industry."

This release contains forward-looking statements concerning NCI's business and operations and industry conditions, including among others industry trends, steel pricing, growth expectations and margin expansion. Forward- looking statements involve a number of risks and uncertainties, and NCI's actual performance may differ materially from that projected in such statements.  Among the factors that could cause actual results to differ materially are industry cyclicality and seasonality, fluctuations in demand and prices for steel, the financial condition of NCI's raw material suppliers, competitive activity and pricing pressure, ability to execute NCI's acquisition strategy and general economic conditions affecting the construction industry.  These and other factors that could affect NCI's financial position and results of operations are described in further detail in NCI's filings with the Securities and Exchange Commission. NCI expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any changes in its expectations.

NCI Building Systems, Inc. is one of North America's largest integrated manufacturers of metal products for the nonresidential building industry.  The Company operates manufacturing and distribution facilities located in 16 states and Mexico.

                         Three Months Ended        Three Months Ended
                           July 30, 2005              July 31, 2004
                                         % Tot                     % Tot
  Sales:
   Metal components     $ 151,298           52    $ 153,975           52
   Engineered building
    systems               115,018           39      113,714           38
   Metal coil coating      26,418            9       28,125           10
   Intersegment sales      59,716           20       62,604           21
   Eliminations           (59,716)         (20)     (62,604)         (21)
    Total net sales      $292,734          100     $295,814          100


  Operating income:                      % Sale                    % Sale
   Metal components       $18,945           13      $20,889           14
   Engineered building
    systems                13,572           12        8,218            7
   Metal coil coating       3,430           13        7,568           27
   Corporate               (8,915)          --       (9,166)          --
    Total operating
     income (% of sales)  $27,032            9      $27,509            9


                          Nine Months Ended         Nine Months Ended
                           July 30, 2005              July 31, 2004


% Tot                     % Tot Sales:

   Metal components    $ 413,418           52    $ 416,764           54
   Engineered building
    systems              296,932           38      259,530           34
   Metal coil coating     78,194           10       89,612           12
   Intersegment sales    159,997           20      138,045           18
   Eliminations         (159,997)         (20)    (138,045)         (18)
    Total net sales     $788,544          100     $765,906          100

  Operating income:                      % Sale                    % Sale
   Metal components      $54,057           13      $50,185           12
   Engineered building
    systems               29,679           10       12,735            5
   Metal coil coating     11,537           15       20,622           23
   Corporate             (28,040)          --      (25,137)          --
    Total operating
     income (% of sales) $67,233            9      $58,405            8


                          NCI BUILDING SYSTEMS, INC.
                             STATEMENTS OF INCOME
                                 (Unaudited)
                    (In thousands, except per share data)

                                 For the Three          For the Nine
                                 Months Ended           Months Ended
                               July 30,   July 31,   July 30,   July 31,
                                 2005       2004       2005       2004

   Sales                       $292,734   $295,814   $788,544   $765,906
   Cost of sales                221,572    227,578    597,113    589,835
   Gross profit                  71,162     68,236    191,431    176,071
                                   24.3%      23.1%      24.3%      23.0%
   Selling, general and
    administrative
      expenses                   44,130     40,727    124,198    117,666
   Income from operations        27,032     27,509     67,233     58,405
   Interest expense              (3,993)    (3,736)   (10,712)   (12,618)
   Loss on debt refinancing          --     (9,879)        --     (9,879)
   Other income, net              1,737      1,184      4,191      1,939

   Income before income taxes    24,776     15,078     60,712     37,847
   Provision for income taxes    10,087      6,683     24,569     15,991
                                   40.7%      44.3%      40.5%      42.3%

   Net income                   $14,689     $8,395    $36,143    $21,856

   Net income per share:
      Basic                       $0.71      $0.42      $1.76      $1.11
      Diluted                     $0.70      $0.41      $1.73      $1.09

   Average shares outstanding:
      Basic                      20,738     19,937     20,565     19,589
      Diluted                    21,012     20,236     20,919     19,863

   Increase (decrease) in sales    -1.0%                  3.0%

   Increase in diluted earnings
    per share                      70.7%                 58.7%

   Gross profit percentage         24.3%      23.1%      24.3%      23.0%

   Selling, general and
    administrative
      expenses percentage          15.1%      13.8%      15.8%      15.4%

   Income from operations
    percentage                      9.2%       9.3%       8.5%       7.6%



                          NCI BUILDING SYSTEMS, INC.
        COMPUTATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
           AMORTIZATION AND OTHER NONCASH ITEMS ("ADJUSTED EBITDA")
                                 (Unaudited)
                                (In thousands)

                                           Trailing 12 Months
                                        July 30,       July 31,
                                          2005           2004
  Net income                            $59,177         $31,968
  Add:
       Provision for income taxes        38,345          22,143
       Interest expense, net of
        interest income and
          amortization on deferred
           financing costs               13,220          17,697
       Depreciation and amortization     23,838          23,110
       401(k) noncash contributions       5,754           3,723
       Loss on debt refinancing              --           9,879 (1)
       Non-cash real estate                  --             391

       Adjusted EBITDA (2)             $140,334        $108,911

  (1)  The loss on debt refinancing was treated as extraordinary per the
       provisions of SFAS No. 4, "Reporting Gains and Losses from
       Extinguishment of Debt," which were applicable during fiscal year
       2002.

  (2)  The Company discloses adjusted EBITDA, which is a non-GAAP measure,
       because it is a widely accepted financial indicator in the metal
       construction industry of a company's profitability, ability to
       finance its operations, and meet its growth plans.  This measure is
       also used by NCI internally to make acquisition and investment
       decisions.  Adjusted EBITDA is calculated based on the terms
       contained in the Company's credit agreement.  Adjusted EBITDA should
       not be considered in isolation or as a substitute for net income
       determined in accordance with generally accepted accounting
       principles in the United States.


  RECONCILIATION OF ADJUSTED NET INCOME AND NET INCOME PER DILUTED SHARE
               TO NET INCOME AND NET INCOME PER DILUTED SHARE
                                 (Unaudited)
                               (In thousands)

                                                For the Nine Months Ended
                                                 July 30,          July 31,
                                                  2005              2004
  Net income                                     $36,143           $21,856

       Add loss on debt refinancing                    -             5,769
       Subtract gain on group medical
        claims experience                         (1,114)                -
       Adjusted net income                       $35,029           $27,625

       Net income per diluted share                $1.73             $1.09
       Adjusted net income per diluted
        share                                      $1.67             $1.39

       Diluted shares outstanding                 20,919            19,863


  Adjusted net earnings and adjusted earnings per diluted share (the
  "adjusted items") are non-GAAP financial measures.  The Company excludes
  the loss on debt refinancing and the gain on group medical claims
  experience to improve the comparability of the results and because both
  management and most industry analysts rely on the adjusted items as a
  primary measure to review and assess the ongoing operating performance of
  the Company. The Company believes it is useful to investors to provide
  disclosures of its operating results on the same basis as that used by
  management and most industry analysts.  The adjusted items should not be
  considered in isolation or as a substitute for net earnings or earnings
  per diluted share determined in accordance with generally
  accepted accounting principles in the United States.




                         NCI BUILDING SYSTEMS, INC.
                          CONDENSED BALANCE SHEETS
                               (In thousands)

                                            July 30,        October 30,
                                              2005              2004
                                          (Unaudited)
   ASSETS
       Cash                                 $195,085           $8,222
       Accounts receivable, net               96,062          108,869
       Inventories                           110,753          138,363
       Deferred taxes                         13,352           12,873
       Prepaids                                3,744            6,491
           Total current assets              418,996          274,818

       Property, net                         186,997          185,687
       Excess of cash over fair value
        of acquired net assets               337,244          318,247
       Other assets                           21,417            4,105
           Total assets                     $964,654         $782,857

   LIABILITIES AND SHAREHOLDERS' EQUITY
       Current portion of long-term
        debt                                  $2,000           $2,000
       Accounts payable                       40,374           57,569
       Accrued expenses                       68,606           88,012
           Total current liabilities         110,980          147,581

       Long-term debt, noncurrent
        portion                              371,500          214,700
       Deferred income taxes                  23,942           19,399

       Equity                                458,232          401,177
           Total Liabilities and
            Shareholders' Equity            $964,654         $782,857



                         NCI BUILDING SYSTEMS, INC.
                     CONDENSED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                               (In thousands)

                                            For the Nine Months Ended
                                         July 30, 2005     July 31, 2004

  Net income                                 $36,143           $21,856
  Adjustments to reconcile net income
   to net cash provided by
     operating activities:
        Loss on debt refinancing                                 9,879
        Depreciation and amortization         18,115            17,209
        Loss on sale of fixed assets             135               156
        Provision for doubtful accounts           27             2,026
        Deferred income tax benefit               --              (170)
        (Increase)/decrease in current
         assets                               54,082           (73,210)
        Increase/(decrease) in current
         liabilities                         (38,324)           46,128

  Net cash provided by operating
   activities                                 70,178            23,874

  Cash flows from investing activities:
        Acquisitions                         (27,145)               --
        Capital expenditures                 (14,555)           (6,715)
        Proceeds from sale of fixed
         assets                                1,580               558
        Other                                   (162)            1,729

  Net cash used in investing activities      (40,282)           (4,428)

  Cash flows from financing activities:
        Proceeds from stock option
         exercises                             4,957            15,988
        Issuance of convertible debt         180,000                --
        Net borrowings/(payments) on
         revolving lines of credit           (16,700)           10,600
        Borrowing of long-term debt               --           200,000
        Payments on long-term debt            (6,500)         (243,750)
        Payment of refinancing costs          (4,790)           (8,060)

  Net cash provided by (used in)
   financing activities                      156,967           (25,222)

  Net increase (decrease) in cash            186,863            (5,776)

  Cash at beginning of period                  8,222            14,204

  Cash at end of period                     $195,085            $8,428


DATASOURCE: NCI Building Systems, Inc.



CONTACT:  Norman C. Chambers, President & Chief Operating Officer,

[phone]

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