(CHICAGO--(BUSINESS WIRE)--Aug. 8, 2006--USG Corporation (NYSE:USG) announced today that its gypsum recycling program partner, Gypsum Recycling America, LLC (GRA), has begun collecting new gypsum wallboard scrap, which will be recycled and reused in USG's wallboard manufacturing operations. USG also announced that it will collect and recycle customers' used ceiling panels as part of the company's new USG Ceiling Panel Recycling Program.

"With these two programs, we're helping to divert thousands of tons of waste from landfills and reusing it for wallboard and ceiling panel production, while also helping our customers and others lower their waste disposal fees," said David Wonnell, director, Environmental and Manufacturing Services at USG Corporation.

First Wallboard Manufacturer to Partner with GRA

USG was the first wallboard manufacturer to contract with GRA's parent company, Gypsum Recycling International, to purchase reprocessed gypsum for the production of new wallboard.

GRA's first facility, located in Cambridge, Mass., started collecting new-construction wallboard scrap in March. This fall, the scrap will be processed by a patented new mobile recycling machine. The machine then converts the material into a gypsum powder that USG's plant in Charlestown, Mass., the state's only wallboard manufacturer, will reuse in making new wallboard.

GRA's Cambridge recycling facility can process a permitted capacity of 60,000 tons of recycled gypsum a year. As GRA expands in the Northeast, USG's plants in Stony Point, N.Y., and Baltimore, Md., will also purchase the reprocessed gypsum. Massachusetts was chosen as GRA's first site because of the state's strong interest in gypsum recycling.

USG has a long history of innovation and environmental excellence in its gypsum panel products. Its SHEETROCK(R) brand gypsum wallboard has been made using 100-percent recycled paper for more than 35 years and the company is the U.S.'s largest user of recaptured or synthetic gypsum, a byproduct of coal-fired utility plants' pollution control processes.

Ceiling Panel Recycling Program Reflects Leadership

USG customers can now recycle pre-approved ceiling panels made by USG or other manufacturers and, once customers have a full truckload, USG will pay the way.

"Recycling of ceiling panels won't happen if it adds to the time and cost of a renovation. That's why we've designed our program to be fast, easy and economical," said J. Mark Kemerling, USG's product marketing manager, Ceiling Panels. "In the same time it takes to haul small loads of panels to a Dumpster, workers can stack panels as they are removed, avoid landfill disposal costs and support a project's ability to earn U.S. Green Building Council LEED credits."

USG's Ceiling Panel Recycling Program accepts panels from the continental U.S. and areas of Canada, and is as simple as stacking, wrapping and calling for a ride. USG will reuse the recycled panels to manufacture new ceiling products. The company already recycles and reuses ceiling panels that are damaged during manufacturing. Many of USG's ceiling panels also use recycled paper and contain mineral wool made of slag, a byproduct of steel production.

But recycling and reusing materials is just one component that supports sustainable building design. Indoor air quality is equally important. USG's ceiling panel product line includes panels that are the highest-performing in the industry, meeting some of the strictest standards for indoor air quality.

Customers interested in recycling ceiling panels should contact their local sales representative. New England-area businesses interested in recycling new gypsum wallboard scrap should contact USG's Sandy Mulkern, smulkern@usg.com, manager, New Business Development, Gypsum Recycling; or Jack Walsh, jw@gypsumrecycling.us, GRA general manager.

USG Corporation is a Fortune 500 company with subsidiaries that are market leaders in their key product groups: gypsum wallboard, joint compound and related gypsum products; cement board; gypsum fiber panels; ceiling panels and grid; and building products distribution. For additional information, visit the USG Web site at www.usg.com.

Gypsum Recycling America LLC is privately owned by Gypsum Recycling International A/S, a Danish firm that is the world leader in Gypsum Recycling Systems. Established in 2001, the company operates in Denmark, Sweden, Norway, Holland, the United Kingdom, Ireland and now the U.S.A. For more information about Gypsum Recycling International, visit www.gypsumrecycling.biz.

Copyright Business Wire 2006

USG Corporation

USG Corporation

USG Corporation is a Fortune 500 manufacturer and distributor of high-performance building systems through its United States Gypsum Company, USG Interiors, Inc. and L&W Supply Corporation subsidiaries. Headquartered in Chicago, USG serves the residential and non-residential construction markets, repair and remodel construction markets, and industrial processes. USG's wall, ceiling, flooring and roofing products provide leading-edge building solutions for customers, while L&W Supply center locations efficiently stock and deliver building materials nationwide. For additional information, visit the USG Web site at www.usg.com.

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