NEWS BULLETIN
RE: Headwaters Incorporated
FROM: 10653 South River Front Parkway, Suite 300
FINANCIAL South Jordan, UT 84095
RELATIONS BOARD (801) 984-9400
NASDAQ: HDWR
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FOR FURTHER INFORMATION
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Sharon Madden Tricia Ross
Director of Investor Relations Analyst Contact
(801) 984-9400 (310) 407-6540
FOR IMMEDIATE RELEASE:
FEBRUARY 11, 2005
HEADWATERS INCORPORATED ANNOUNCES VERDICT IN TRIAL WITH
AJG FINANCIAL SERVICES, INC.
SOUTH JORDAN, UTAH, FEBRUARY 11, 2005 - HEADWATERS INCORPORATED (NASDAQ: HDWR),
today announced that the jury has reached a verdict on three claims in the trial
against AJG Financial Services, Inc. First, the jury determined that AJG
violated its license agreement with Headwaters by failing to pay royalties from
four alternative fuel lines located in South Carolina. The jury found that AJG
should pay Headwaters $175,294,532 for the breach of contract through 2004.
Second, the jury found that Headwaters violated an agreement with AJG by not
paying royalties in connection with a financing agreement and indicated that
Headwaters should pay AJG $270,734 for the breach. Third, the jury rejected
AJG's negligent misrepresentation claim against Headwaters.
The court has not yet ruled on Headwaters' claim for declaratory relief
concerning AJG's future obligation to pay royalties for production from the four
alternative fuel lines. Further, the court has not yet entered judgment on the
verdict. Once entered, the parties may seek relief from the judgment by motion
to the trial court and by appeal from the final judgment. It is anticipated that
this case will be the subject of post-verdict motions and appeals. No revenue
will be recognized until these post-verdict motions and appeals are resolved and
collection is assured.
"Over the past four years, the litigation has been a distraction. We are pleased
that the jury agreed with our position," said Kirk A. Benson, Chief Executive
Officer. "But it will still require time and expense to bring this litigation to
its final conclusion and collect the money owed to Headwaters."
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 products 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.
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Headwaters Incorporated
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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, 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,
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, 2004, 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.