2007-11-12 22:05:04 -

- HEADWATERS INCORPORATED (NYSE:HW), As part of the continuing effort to recognize synergies within its building products companies, Headwaters today announced changes associated with additional integration of its building products segment.

Jack Lawless, President of the Headwaters Building Products segment that includes Tapco, Eldorado Stone and Southwest Concrete Products, announced the changes designed to positively impact sales and cost

structure while keeping the company's well-developed, powerful brands intact.

"Headwaters is making steady, deliberate progress in further integrating its building products companies to take advantage of unique opportunities in brand recognition, maximization of the company's multi-channel distribution systems and new product development," said Lawless. "Even during the most severe building products market downturn in the past 20 years, the integration efforts we've undertaken have led to improved sales, improved operating efficiency, reduced waste and significant margin recovery."

Lawless also announced that Eldorado Stone President Mike Lewis is leaving the Company. "Mike was instrumental in guiding Eldorado Stone through an extraordinary growth period and was responsible for transforming the company into the leading manufacturer of architectural stone veneer. We appreciate Mike's efforts over the years and wish nothing but the best for him," said Lawless. Two senior Eldorado executives will have new reporting relationships. Dave Schaefer, who currently oversees operations, finance and administration, and Randy Stits, currently the top sales and marketing executive, will now report through Headwaters Building Products to further facilitate the sensible integration of these brand-driven entities.

About Headwaters Incorporated

Headwaters Incorporated is a world leader in creating value through innovative advancements in the utilization of natural resources. Headwaters is a diversified growth company providing products, technologies and services to the energy, construction and home improvement industries. Through its alternative energy, coal combustion products, and building materials businesses, the Company earns a growing revenue stream that provides the capital needed to expand and acquire synergistic new business opportunities.

Forward-Looking Statements

Certain statements contained in this report are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe-harbor created thereby. Forward-looking statements include Headwaters' expectations as to the managing and marketing of coal combustion products, the production and marketing of building materials and products, the licensing of technology and chemical sales to alternative fuel facilities, the receipt of product sales, license fees and royalty revenues, which are subject to tax credit phase out risks, the development, commercialization, and financing of new technologies and other strategic business opportunities and acquisitions, and other information about Headwaters. Such statements that are not purely historical by nature, including those statements regarding Headwaters' future business plans, the operation of facilities, the availability of tax credits in an environment of high oil prices and potential tax credit phase out, the availability of feedstocks, and the marketability of the coal combustion products, building products, and synthetic fuel, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Actual results may vary materially from such expectations. Words such as "expects," "anticipates," "targets," "goals," "projects," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking. In addition to matters affecting the coal combustion product, alternative fuel, and building products industries or the economy generally, factors which could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the captions entitled "Forward-looking Statements" and "Risk Factors" in Item 7 in Headwaters' Annual Report on Form 10-K for the fiscal year ended September 30, 2006, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses.

Although Headwaters believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors. Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Our internet address is www.headwaters.com. There we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our reports can be accessed through the investor relations section of our web site.

Headwaters Incorporated
Sharon Madden, 801-984-9400
or
Financial Relations Board
Tricia Ross, 310-854-8300 (Analyst)