The Texas Industries, Inc. Board of Directors has approved a plan to spin off its wholly-owned steel business.

Tommy Valenta, Executive Vice President in charge of TXI's steel operations, will be the new steel company’s CEO. Additional details regarding the spin-off, which is expected to take the form of a tax-free stock dividend to TXI shareholders, have not yet been finalized.

The Board of Directors believes the separation will better facilitate the strategic objectives of TXI's cement, aggregate and concrete segment and its steel operations. "This action will result in the creation of two businesses with leading positions in their respective markets," states Mel Brekhus, CEO of TXI. "TXI's cement, aggregate and concrete operations have strong competitive positions in the Texas and California building materials markets. The steel business, with operations in Texas and Virginia, is the second-largest supplier of structural steel throughout North America."

The separation is expected to permit the companies to more efficiently obtain and allocate resources for distinct businesses and also allow the management of each segment to focus on the opportunities and challenges specific to their particular business.

The transaction is subject to confirmation that the distribution will be tax-free, continued favorable market conditions, and satisfaction of U.S. Securities and Exchange Commission requirements and other customary conditions. It is expected that the distribution will be completed in summer 2005.

TXI is a leading supplier of building materials, primarily cement and structural steel. Cement operations serve Texas and California, the two largest cement markets in the nation. Structural steel products are distributed throughout North America.