X0202 4 2006-12-15 0001350593 Mueller Water Products, Inc. MWA 0001306321 HYLAND GREGORY E 1200 ABERNATHY ROAD ATLANTA GA 30328 1 1 0 0 Chairman, President and CEO Series A Common Stock 2006-12-15 4 A 0 0 0 A 515119 D Stock Option (right to buy) 0 2006-12-15 4 A 0 0 0 A Series A Common Stock 0 88300 D In connection with the Company's spin-off from Walter Industries, Inc. ("WLT"), the Compensation Committee of the Board of Directors of the Company (the Committee) approved a formula for the grant of restricted stock units (RSUs) and stock options to the Reporting Person and others on December 15, 2006, substantively replacing RSUs and stock options for WLT common stock held by the grantees prior to the spin-off on December 14, 2006. The RSUs and options will be granted under the Company's 2006 Stock Incentive Plan. The number of replacement RSUs, and the number and exercise prices of replacement stock options are based upon a formula designed to provide grantees with equity grants of comparable value based on the relative fair market values of Walter Industries common stock and of Mueller Water Products Series A common stock at the time of the spin-off, and have not yet been calculated. Such amounts will be provided in an amendment to this Form 4. Reflects Reporting Person's holdings without giving effect to the grants reported hereby. MaryLiz A. Geffert, Attorney-In-Fact for Gregory E. Hyland 2006-12-19