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Concrete Tailgate Talk

Updated: July 8th, 2008 05:26 PM GMT-05:00

U.S. Concrete Announces Formation of Joint Venture in Michigan

via PRNewswire

Mr. Harlan added, "The joint venture complements our stated strategies of achieving a leading ready-mixed supplier position in our markets, while securing a long-term commitment for cost-effective aggregates supply and furthering in-market vertical integration through access to a cement terminal."

For financial reporting purposes, U.S. Concrete is expected to consolidate the joint venture. The Company expects results from operations from the joint venture to be slightly accretive to its 2007 forecasted earnings per share. The joint venture will also establish its own credit facility apart from U.S. Concrete's current revolving credit facility for working capital needs and general corporate purposes.

U.S. Concrete services the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and concrete-related products; and western precast concrete. Excluding the ready-mix concrete assets to be contributed to the joint venture by the Edw. C. Levy Co., the Company has 138 fixed and seven portable ready-mixed concrete plants, 10 pre-cast concrete plants, three concrete block plants and eight aggregates facilities. During 2006, these facilities produced approximately8.7 million cubic yards of ready-mixed concrete, 4.0 million eight-inch equivalent block units and 4.6 million tons of aggregates. For more information on U.S. Concrete, please visit http://www.us-concrete.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains various forward-looking statements and information that are based on management's belief, as well as assumptions made by and information currently available to management. These forward-looking statements speak only as of the date of this press release. The Company disclaims any obligation to update these statements and cautions you not to rely unduly on them. Forward-looking information includes, but is not limited to, statements regarding the satisfaction of conditions to closing the joint venture, the entry into of a long-term aggregates supply agreement, the establishment of a separate credit facility for the joint venture, the integration and anticipated synergies of the Levy and U.S. Concrete operations in Michigan, the expected enhancement of growth initiatives, the timing for closing, the expected accounting treatment for financial reporting purposes and the impact on 2007 forecasted earnings per share. Although U.S. Concrete believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions; the level of activity in the construction industry; the ability of the joint venture to integrate the operations of the Levy and U.S. Concrete companies in Michigan effectively; the ability of the joint venture to enter into its own credit facility; development of adequate management infrastructure; departure of key personnel; access to labor; union disruption; competitive factors; government regulations; exposure to environmental and other liabilities; the cyclical and seasonal nature of the joint venture's business; adverse weather conditions; the availability and pricing of raw materials; and general risks related to the industry and markets in which U.S. Concrete operates. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. Most of these risks, as well as others, are discussed in greater detail in U.S. Concrete's filings with the Securities and Exchange Commission, including U.S. Concrete's Annual Report on Form 10-K for the year ended December 31, 2006 .

SOURCE U.S. Concrete, Inc.


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