Wienerberger continues growth in facing brick business

Wien (OTS) -
- USA: investments of roughly Euro 34.4 million to strengthen
position on the largest facing brick market in the world
- Eastern Europe: planned expansion of facing brick production in
Poland

The facing brick product segment contributes an important amount
to Wienerberger’s success with a 38% share of revenues. The Group is
now undertaking the next expansion steps in this area in order to
further grow its position on facing brick markets in Europe and the
USA.

Profitable growth in the USA

General Shale, the wholly owned US subsidiary of Wienerberger AG,
is continuing the profitable growth course set by its parent company.
The acquisition of Wittichen Lime & Cement Co., Inc. - a building
materials merchant with six locations in Tennessee, Mississippi and
Arkansas - was finalized on November 30, 2004. In Brickhaven, a plant
in North Carolina, construction will start this year to expand
production capacity. "Residential construction is currently
undergoing a change in America. The demands of homeowners and
builders for durability and long-term stability in housing are
increasing," explained Hans Tschuden, CFO of Wienerberger AG and
responsible board member for the US market. "This shift in attitude
is making bricks more important as a building material for facades.
The expansion of Brickhaven combined with our sales network will
allow us to meet this rising demand in an optimal manner and further
strengthen our market position in the USA, the largest facing brick
market in the world."

Expansion of capacity in Brickhaven

Brickhaven - one of three General Shale plants in North Carolina -
is optimally suited for the expansion of capacity because of its
plant structure, large clay reserves and strong local demand for
bricks. A third kiln line will increase production by 90 million SBEs
(standard format for facing bricks) to 270 million SBEs. A total
investment of Euro 13 million is planned for this project.
Construction is scheduled to start in December 2004, and the plant
will reach full capacity during the fourth quarter of 2005.
Extensive sales network strengthens US market position
The acquisition of the Wittichen Group (this building materials
merchant operates five outlet centers and one showroom) will
strengthen the General Shale sales network in the economically
interesting South-East and Mid-West regions. This represents a key
competitive advantage because direct sales can better safeguard the
company's market position, and the sale of merchandise will generate
added revenues. The Wittichen acquisition is the third transaction
that General Shale has completed in 2004 to strengthen its direct
sales network. The retailers Carolina Brick & Block (South Carolina)
and Colonial Brick (Michigan) were acquired this spring, and
successfully integrated. A total of Euro 21.4 million has been
invested in the expansion of the sales network this year.

Expansion in Poland

In Europe Wienerberger was able to significantly strengthen its
position on the facing brick market during the first three quarters
of 2004 with the acquisition of the Wewers plants in Denmark, the
expansion of capacity in Belgium and the purchase of the third
largest brick producer in Great Britain. As its next growth step, the
company is planning to expand its facing brick activities in Poland.
Under evaluation is the expansion of capacity at the Torun plant or
the construction of a new plant at a location already secured by the
company in southeast Poland. "Strong pent-up demand for residential
construction and the rising share of bricks on the market lead us to
expect long-term growth opportunities for our company in Poland,"
commented Johann Windisch, member of the Managing Board of
Wienerberger AG for Central-East Europe, on the reasons for this
investment.

Rückfragehinweis:
Thomas Melzer, Public and Investor Relations
Tel.: +43(1)60192-463
e-Mail: [email protected]

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