NATIONAL GYPSUM ENTERS JOINT VENTURE
TO PRODUCE CEMENT BOARD IN MEXICO

National Gypsum announced today it has entered a joint venture with Panel Rey S.A. to produce PermaBase^®cement board in Mexico. The new joint venture company will be PermaBase de Américas.

The joint venture plans to open its first plant in Monterrey, Mexico, during the fourth quarter of 2008. The product, used as exterior sheathing and as an underlayment for tile, will be sold in Central and South America as well as Mexico. For the past seven years, Panel Rey has sold PermaBase to over 300 distributors throughout Mexico and Latin America under an agreement with National Gypsum.

“Sales have grown consistently, and we are ready to take our partnership with Panel Rey to the next level,” said Craig Robertson, general manager for National Gypsum’s PermaBase business. “The new plant in Mexico will allow us to streamline the supply chain by reducing freight and eliminating customs fees and duties.”

“The use of PermaBase cement board for exterior facades has grown dramatically,” said Panel Rey CEO Nicholas Alverde. “With the expanding economy in Mexico and Latin America, this product is ideally suited to meet our country’s needs for renovation, rebuilding, and new construction.”

PermaBase features patented EdgeTech^® technology which provides a superior product and a competitive advantage. The strong, rounded edges prevent cracking and crumbling during installation. These edges also protect the board during transit and handling at the jobsite.

The joint venture will also produce PermaBase Flex, the only product of its kind in the industry. It is a ½-inch lightweight cement board that bends without time-consuming water saturation or scoring. The product is easy to handle, cut and install, which results in reduced skilled labor costs.

National Gypsum has four PermaBase plants – one in Bromont, Quebec and three in the United States in Jacksonville, FL; Clinton, IN, and Dallas, TX.

Panel Rey, headquartered in Monterrey, produces and distributes gypsum wallboard, metal studs, and joint treatment products to the Mexican and Central and South American markets. More information about Panel Rey is available on its website: www.panelrey.com.

About National Gypsum
Based in Charlotte, NC, National Gypsum is a leading supplier of wallboard, interior finishing products, and cement board to the construction industry. It has a network of nearly 50 facilities in North America, including its own paper mills and gypsum mines and quarries.

February 20, 2008

Nancy Spurlock
Director, Corporate Communications
704/365-7556
nhspurlock@nationalgypsum.com