N E W S B U L L E T I N FROM: …

 N E W S             B U L L E T I N
                       FROM:
                                                     RE:   Headwaters Incorporated
                                                           10653 South River Front Parkway, Suite 300
                                                           South Jordan, UT 84095
                                                           (801) 984-9400
                                                           NYSE: HW

FOR FURTHER INFORMATION

     AT THE COMPANY:                                  AT FINANCIAL RELATIONS BOARD:
     Sharon Madden                                    Tricia Ross
     Vice President of Investor Relations             Analyst Contact
     (801) 984-9400                                   (213) 486-6544

     FOR IMMEDIATE RELEASE:
     March 3, 2008

         HEADWATERS INCORPORATED COMMENTS ON SIXTH
              ANNUAL ANALYST DAY CONFERENCE

     SOUTH JORDAN, UTAH ­ Headwaters Incorporated (NYSE:HW), announced that it
     conducted its sixth annual analyst day conference Friday, February 29 at The Grand America
     Hotel in downtown Salt Lake City. During the half-day meeting, presentations were given by
     Headwaters' senior management team addressing Headwaters Energy Services division,
     Headwaters Building Products division, Headwaters Resources division, as well as an overview
     on the Company's proprietary HCATTM heavy oil catalyst technology. Steven Stewart,
     Headwaters' Chief Financial Officer, reviewed the Company's financial status, and Kirk Benson,
     Headwaters' Chief Executive Officer, presented a general overview. Highlights of the
     conference are included in this press release.

     Coal Cleaning

     At the end of calendar year 2007, Headwaters Energy Services ("HES") was operating three coal
     cleaning facilities, and had two additional facilities in the start up phase of operations. In
     February, a sixth facility was acquired in West Virginia to focus on the production of met coal.
     Combined with the four facilities currently under construction, HES expects to have ten
     operating facilities by the end of calendar 2008. For 2009, HES is evaluating additional sites,
     and has more than five sites under detailed review. We have rights to between 350 and 550
     million tons of waste coal and anticipate sales of five to seven million tons of coal annually by
     2010.

     We are continuing to improve our operational performance at the three facilities currently in full
     operation. We have had operations at levels approaching 90%% of expected capacity, and
     expect near term average operations to be in the range of 75% of capacity. We have had
     consistent improvement over time in operations as we develop a better understanding of cleaning
     processes.
Over the last six months, HES has signed agreements with ten utility customers to sell an
anticipated 1.4 million tons of coal on an annual basis. In the December quarter, we sold 85,000
tons of coal. In January and through February 15th, 2008, we sold 100,000 tons, and expect to
sell more than 200,000 tons in the March quarter as we ramp up sales. We now have staffed our
coal marketing effort and continue to conduct test burns with prospective utility customers. We
have eight prospects reviewing offers to purchase 11 million tons total between the fall of 2008
and 2011.

HCAT

Headwaters believes that industry projections of limited future crude oil supplies and refining
capacity provide economic tail winds for HCAT's commercialization. HCAT is a new resid
hydrocracking catalyst technology that Headwaters anticipates may be used as an additive or
replacement technology for traditional processes used for upgrading residual heavy oil.

We have anticipated running HCAT in an additional refinery, and the HCAT catalyst was
introduced into an ebullated bed residue hydrocracking unit at a third refinery in mid-February.
After the trial commenced, there arose a technical constraint in the unit and the refinery
temporarily suspended the demonstration eight days into the test.

During the eight day trial period, we saw the same positive results previously demonstrated.
Specifically, the heat exchanger fouling was greatly reduced and sediment levels in the
unconverted residue dropped by over 50 percent. It is another confirmation of HCAT's positive
contribution to ebullated bed technology. We look forward to the reintroduction of HCAT and
the conclusion of the testing period.

The Company has successfully completed three previous commercial demonstrations of HCAT
with positive results. The first demonstration was in a European refinery that has purchased the
HCAT conditioning system and further implementation efforts are expected during calendar
2008. The second refinery ran two separate tests and recently purchased the HCAT conditioning
system. Headwaters expects further implementation activities with this refinery in calendar
2008.

There are multiple effects from HCAT that we anticipate will add value in a refinery operation.
The Company believes that increased conversion, improved product quality, reaction gain, and
utilization through lower sediment levels and fouling are some of the benefits from HCAT.
Increased costs incurred by a refinery for use of the HCAT technology include the cost of the
catalyst and hydrogen.

Building Products

Weak demand in single family housing has resulted in fewer starts and high levels of inventory
of new and existing homes. The Company anticipates that excess housing inventory will be
reduced as a result of lower production and increased affordability. But, we believe recovery in
new construction will not occur until 2009 at the earliest. Headwaters projects good opportunities
in the remodel market in the latter part of 2008 and the beginning of 2009, while in the interim,
commercial and institutional sales continue to be strong. The Company feels its core products are
well positioned to benefit from the future recovery in new construction. Long-term, Headwaters
believes that household formation in the United States will lead to strong demand for new
construction, positively impacted by immigration and population growth.

Certain new products and brands, such as Inspire Roofing, Foundry Specialty Siding, and
functional shutters grew organically over 20% last year. The compounded average growth rate
in new products and brands between fiscal 2004 and 2007 exceeded 70%. A key element of the
Company's strategy is to introduce new products and brands into our distribution system. For
example, we introduced a new colored trim board cellular PVC product at the national builders
show in February.

Resources

The December 2007 quarter proved to be another record quarter for Headwaters Resources.
Demand for coal combustion products, and particularly fly ash, remains strong. Headwaters
Resources continues to focus on increasing its supply of high quality fly ash by increasing its
storage and distribution capabilities, innovative technology advancements and blending
techniques. We have also been awarded several new contracts that will increase our available
supply of high value coal combustion products by over 5%.

Green building is one of the reasons the demand for fly ash should continue to increase. Utilizing
fly ash in construction projects reduces CO2 emissions produced when making portland cement.
The U.S. Green Building Council's LEED (Leadership in Energy & Environmental Design)
projects are growing roughly 74% per year, and using fly ash contributes toward LEED
certification.

The fly ash industry does, however, have an issue that it may need to address. Over the next
several years, some state regulators are implementing rules to control mercury emissions at coal
fired power plants. Powdered activated carbon (PAC) can be used to reduce mercury emissions,
but the addition of carbon into power plant exhaust streams may have an impact on the quality of
fly ash produced. Headwaters Resources has an initiative under way to reduce the potential
impact of PAC, and it believes that the impact can be successfully mitigated.

Capital Structure

Headwaters successfully completed a $160 million convertible debt offering in FY2007, with a
call spread that raises the conversion premium to $35 per share. The Company reduced its senior
secured credit facility during fiscal 2007 by more than $200 million with the proceeds from the
convertible debt offering and cash flow from operations. Due to early repayments, no senior debt
principal payments are due until 2011. Cash flow from operations in 2008 is expected to exceed
$125 million.

Additional information about Headwaters is available in its Annual Report, on Form 10-K and
other periodic and special reports filed by the Company. Our website, www.headwaters.com,
has links to all of our SEC reports. Stockholders may receive a hard copy of the Company's
complete audited financial statements and SEC reports free of charge upon request to Sharon
Madden, Vice President of Investor Relations.
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 materials 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 press release 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. 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 production and marketing of cleaned coal, the production and marketing of
hydrogen peroxide, the licensing of resid hydrocracking technology and catalyst sales to oil refineries, the availability of refined
coal tax credits, 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
feedstocks, and the marketability of the coal combustion products, building products, cleaned coal, hydrogen peroxide, catalysts,
and the availability of tax credits, 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," "plans," variations of such words and similar expressions, are intended to help 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 products, building products, and alternative energy industries or the economy generally,
factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the
factors described in the caption entitled "Risk Factors" in Item 1A in Headwaters' Annual Report on Form 10-K for the fiscal
year ended September 30, 2007, 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.