Coal

Headwaters Inc. completes first shipment of fly ash to Puerto Rico

SOUTH JORDAN, Utah, Sept. 19, 2003 — Headwaters Inc. announced that it has successfully completed its first shipment of fly ash to Puerto Rico.

The fly ash was produced at a Louisiana power plant and shipped out of the Natchitoches, La., port facilities. Ecoloigical Carmelo purchased the fly ash from Headwaters.

Ecoloigica Carmelo is part of Grupo Carmelo, Puerto Rico’s largest producer of construction aggregates and a producer of concrete construction materials. Grupo Carmelo has invested capital to provide for storage and handling of the fly ash in Puerto Rico.

“We are pleased with our relationship with Grupo Carmelo and the opportunity to provide fly ash into the Puerto Rico market,” said Bill Gehrmann, senior vice president of ISG, Headwaters’ coal combustion products unit. “The first shipment consisted of 12,000 tons and is the beginning of a long-term relationship. Puerto Rico will benefit from receiving some excellent fly ash for its concrete construction industry.”

The fly ash shipments also provide economic benefits to Louisiana, creating jobs and utilization of valuable coal combustion products. Raul Deju, president of ISG, said, “We have been working with local officials in Louisiana to make this partnership work and bring value to the local economy. Local officials have been very responsive and helpful to us.”

About Headwaters Incorporated

Headwaters Incorporated is providing technology and services that maximize the value of fossil fuels. The company is focused on providing services to energy companies, conversion of fossil fuels into alternative energy products, and generally adding value to energy. Headwaters generates revenue from managing coal combustion products (CCPs) and from licensing its innovative chemical technology to produce an alternative fuel. Through its CCP business and its solid alternative fuels business, the company earns a growing revenue stream that provides the capital needed to expand and acquire synergistic new business opportunities.