Kenneth R. Allen  Vice President-Finance and Chief Financial Officer 972.647.6730 Email: kallen@txi.com

TXI REPORTS FIRST QUARTER RESULTS

Dallas, TX - September 25, 2008 - Texas Industries, Inc. (NYSE-TXI) today reported financial results for the quarter ended August 31, 2008. Net income was $10.7 million ($.38 per share) and included after-tax income of $2.9 million ($.10 per share) related to oil and gas lease bonus payments received during the quarter. Net income for the quarter ended August 31, 2007 was $17.9 million ($.64 per share).

General Comments

“TXI is experiencing a tale of two markets,” stated Mel Brekhus, Chief Executive Officer. “In Texas, which accounts for approximately 80% of TXI’s sales, cement consumption continues to significantly exceed cement production capacity. Construction activity in California, on the other hand, has continued to decline, resulting in a level of cement consumption we believe is below production capacity in the state.”

TXI continues to make progress toward adding both 1.4 million tons of additional cement production capacity at its Central Texas plant by late calendar 2009 or early 2010 and an estimated 500,000 tons of additional cement production through planned efficiency efforts at its North Texas plant. Both projects are in addition to the new cement plant in California that was placed into service during the fourth quarter of the prior fiscal year. “We are pleased with the new California plant’s capabilities but market conditions are not allowing us to operate the plant at capacity,” Brekhus added. “After we complete these projects, we will have almost 8 million tons of cement capacity in the two largest cement consuming states in the nation.”

TXI obtained $300 million of debt financing during the quarter which was used in part to pay off $179.5 million in bank debt, with the remainder to be used towards the financing of the Central Texas cement expansion. “This financing is important because it places us in a strong position to weather the current economic conditions and continue our strategic cement growth initiatives,” stated Brekhus. “When the general economy recovers, we plan to be in position to take full advantage of it.”

A teleconference will be held today, September 25, 2008 at 1:00 P.M. Central Daylight Time to further discuss quarter results. A real-time webcast of the conference is available by logging on to TXI’s website at www.txi.com.

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The following is a summary of operating results for our business segments and certain other operating information related to our principal products.

Cement Operations

	Three months ended August 31,
In thousands except per unit	2008			2007
Operating Results
Total cement sales	$	111,404		$	123,423
Total other sales and delivery fees		9,959			7,712
Total segment sales		121,363			131,135
Cost of products sold		104,557			109,107
Gross profit		16,806			22,028
Selling, general and administrative		(4,704	)		(5,011	)
Other income		5,203			824
Operating Profit	$	17,305		$	17,841
Cement
Shipments (tons)		1,218			1,290
Prices ($/ton)	$	91.43		$	95.69
Cost of sales ($/ton)	$	79.26		$	79.37

Through the cement segment we produce and sell gray portland cement as our principal product, as well as specialty cements.

Operating profit for the three-month period ended August 31, 2008 was $17.3 million, a decrease of $.5 million from the prior year period.

Total cement sales for the three-month period ended August 31, 2008 decreased $12.0 million from the prior year period on 4% lower average prices and 6% lower shipments. Our Texas market area accounted for approximately 69% of total cement sales in the current period compared to 62% of total cement sales in the prior year period. Average cement prices in our Texas market area increased 1% from the prior year. The decline in construction activity in our California market area resulted in a decrease in bulk and package cement prices and shipments of 8% and 12%, respectively from the prior year period.

Cost of sales for the three-month period ended August 31, 2008 decreased $4.6 million from the prior year period primarily due to lower shipments. Cement unit costs were comparable to the prior year period. Higher energy costs at all our plants were offset by lower maintenance costs related to the timing of scheduled maintenance.

Selling, general and administrative expense for the three-month period ended August 31, 2008 decreased $.3 million from the prior year period primarily due to lower incentive compensation expense.

Other income for the three-month period ended August 31, 2008 increased $4.4 million from the prior year period. Other income in the current period includes a lease bonus payment of $2.8 million received upon the execution of an oil and gas lease on property we own in north Texas. In addition, other income in the current period includes a gain of $1.7 million from the sale of emission credits associated with our California cement operations.

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Aggregate Operations

	Three months ended August 31,
In thousands except per unit	2008			2007
Operating Results
Total stone, sand and gravel sales	$	40,679		$	39,804
Total other sales and delivery fees		31,118			30,421
Total segment sales		71,797			70,225
Cost of products sold		59,445			55,042
Gross profit		12,352			15,183
Selling, general and administrative		(3,823	)		(4,147	)
Other income		407			406
Operating Profit	$	8,936		$	11,442
Stone, sand and gravel
Shipments (tons)		5,201			5,551
Prices ($/ton)	$	7.82		$	7.17
Cost of sales ($/ton)	$	6.28		$	5.05

Through the aggregates segment we produce and sell stone, sand and gravel as our principal products, as well as expanded shale and clay lightweight aggregates.

Operating profit for the three-month period ended August 31, 2008 was $8.9 million, a decrease of $2.5 million from the prior year period.

Total segment sales for the three-month period ended August 31, 2008 increased $1.6 million from the prior year period as total stone, sand and gravel sales were up $.9 million on 9% higher average prices and 6% lower shipments.

Cost of sales for the three-month period ended August 31, 2008 increased $4.4 million from the prior year period. Stone, sand and gravel costs increased primarily due to higher production and higher fuel and transportation costs. Our cost of diesel fuel per gallon in the current period increased approximately 73% from the prior year period.

Selling, general and administrative expense for the three-month period ended August 31, 2008 decreased $.3 million from the prior year period primarily due to lower incentive expense.

Other income for the three-month period ended August 31, 2008 was comparable to the prior year period.

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Consumer Products Operations

	Three months ended August 31,
In thousands except per unit	2008			2007
Operating Results
Total ready-mix concrete sales	$	78,894		$	79,990
Total other sales and delivery fees		16,330			14,536
Total segment sales		95,224			94,526
Cost of products sold		91,744			85,720
Gross profit		3,480			8,806
Selling, general and administrative		(4,315	)		(4,905	)
Other income		385			176
Operating Profit (Loss)	$	(450	)	$	4,077
Ready-mix concrete
Shipments (cubic yards)		947			998
Prices ($/cubic yard)	$	83.30		$	80.17
Cost of sales ($/cubic yard)	$	81.15		$	73.90

Through the consumer products segment we produce and sell ready-mix concrete as our principal product, as well as packaged concrete mix, mortar, sand and related products.

Operating loss for the three-month period ended August 31, 2008 was $.5 million, a decrease in profit of $4.5 million from the prior year period.

Total ready-mix concrete sales for the three-month period ended August 31, 2008 decreased $1.1 million on 4% higher average prices and 5% lower volume.

Cost of sales for the three-month period ended August 31, 2008 increased $6.0 million from the prior year period. Overall ready-mix concrete unit costs increased 10% from the prior year period primarily due to higher raw material costs, as well as higher distribution and transportation costs. Our raw material unit costs in the current period increased approximately 9% from the prior year period. Our cost of diesel fuel per gallon in the current period increased approximately 85% from the prior year period.

Selling, general and administrative expense for the three-month period ended August 31, 2008 decreased $.6 million from the prior year period primarily due to lower incentive compensation expense.

Other income for the three-month period ended August 31, 2008 increased $.2 million from the prior year period. Other income in the current period includes lease bonus payments of $.2 million received upon the execution of oil and gas lease agreements on property we own in north Texas.

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Unallocated Overhead and Other Income

	Three months ended August 31,
In thousands	2008			2007
Other income	$	61		$	172
Selling, general and administrative		(2,546	)		(2,311	)
	$	(2,485	)	$	(2,139	)

Unallocated overhead and other income relate primarily to certain environmental, engineering and other administrative operating activities not attributable to a specific segment.

Corporate

	Three months ended August 31,
In thousands	2008			2007
Other income	$	2,185		$	675
Selling, general and administrative		(1,950	)		(5,809	)
	$	235		$	(5,134	)

Other income for the three-month period ended August 31, 2008 includes a bonus payment of $1.6 million received upon the execution of an oil and gas lease agreement on property we own in north Texas that is not associated with any business segment.

Selling, general and administrative expense for the three-month period ended August 31, 2008 decreased $3.9 million from the prior year period. The decrease was primarily the result of $2.4 million lower incentive compensation expense and $2.3 million lower stock-based compensation, offset in part by an increase in other expenses. Our incentive plans are based on financial performance. Our stock-based compensation includes awards expected to be settled in cash, the expense for which is based on the average stock price at the end of each period until the awards are paid. The impact of changes in our stock price reduced stock-based compensation $5.1 million and $3.0 million during three-month periods ended August 31, 2008 and August 31, 2007, respectively.

Interest

Interest expense incurred for the three-month period ended August 31, 2008 was $9.0 million, of which $1.8 million was capitalized in connection with our Hunter, Texas cement plant expansion project and $7.2 million was expensed. Interest expense incurred for the three-month period ended August 31, 2007 was $6.1 million, all of which was capitalized in connection with our Oro Grande, California cement plant expansion project. Interest expense incurred increased $2.9 million due to higher average outstanding debt and borrowings on life insurance contracts. An additional $26.3 million in interest expense is currently estimated to be capitalized in connection with our Hunter expansion project. We expect to begin the startup and commissioning process during the winter of fiscal year 2010.

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Loss on Debt Retirements

On August 18, 2008, we sold $300 million aggregate principal amount of additional 7.25% senior notes due in 2013 at an offering price of $93.25. The net proceeds were used to repay our $150 million senior term loan and borrowings outstanding under our senior revolving credit facility in the amount of $29.5 million. We recognized a loss on debt retirement of $.9 million representing a write-off of debt issuance costs associated with the mandatory prepayment of the term loan.

Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Potential risks and uncertainties include, but are not limited to, the impact of competitive pressures and changing economic and financial conditions on the Company’s business, construction activity in the Company’s markets, abnormal periods of inclement weather, unexpected periods of equipment downtime, changes in costs of raw materials, fuel and energy, the impact of environmental laws, regulations and claims and risks and uncertainties described in the Company’s reports on SEC Forms 10-K, 10-Q and 8-K.

TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregate, ready-mix concrete and concrete products.

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(Unaudited)

CONSOLIDATED STATEMENTS OF OPERATIONS

TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Three months ended August 31,
In thousands except per share	2008			2007
NET SALES	$	256,392		$	263,454
Cost of products sold		223,754			217,437
GROSS PROFIT		32,638			46,017
Selling, general and administrative		17,338			22,183
Interest		7,245			--
Loss on debt retirements		907			--
Other income		(8,241	)		(2,253	)
		17,249			19,930
INCOME BEFORE INCOME TAXES		15,389			26,087
Income taxes		4,731			8,173
NET INCOME	$	10,658		$	17,914
Net income per share
Basic	$	.39		$	.66
Diluted	$	.38		$	.64
Average shares outstanding
Basic		27,506			27,333
Diluted		27,831			27,896
Cash dividends per share	$	.075		$	.075

CONSOLIDATED BALANCE SHEETS

TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Unaudited August 31,			May 31,
In thousands	2008			2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	118,548		$	39,527
Receivables - net		140,703			155,676
Inventories		142,695			130,181
Deferred income taxes and prepaid expenses		28,449			30,398
TOTAL CURRENT ASSETS		430,395			355,782
OTHER ASSETS
Goodwill		60,110			60,110
Real estate and investments		34,720			59,971
Deferred charges and other		13,907			11,332
		108,737			131,413
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements		154,669			139,544
Buildings		57,026			56,976
Machinery and equipment		1,226,005			1,208,905
Construction in progress		187,049			137,083
		1,624,749			1,542,508
Less depreciation and depletion		527,243			514,744
		1,097,506			1,027,764
	$	1,636,638		$	1,514,959
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	123,221		$	128,497
Accrued interest, wages and other		33,881			47,846
Current portion of long-term debt		229			7,725
TOTAL CURRENT LIABILITIES		157,331			184,068
LONG-TERM DEBT		539,195			401,880
DEFERRED INCOME TAXES AND OTHER CREDITS		111,187			112,498
SHAREHOLDERS’ EQUITY
Common stock, $1 par value		27,538			27,493
Additional paid-in capital		463,559			459,877
Retained earnings		344,872			336,279
Accumulated other comprehensive loss		(7,044	)		(7,136	)
		828,925			816,513
	$	1,636,638		$	1,514,959

(Unaudited)

CONSOLIDATED STATEMENTS OF CASH FLOWS

TEXAS INDUSTRIES, INC. AND SUBSIDIARIES

	Three months ended August 31,
In thousands	2008			2007
OPERATING ACTIVITIES
Net income	$	10,658		$	17,914
Adjustments to reconcile net income to cash provided by operating activities
Depreciation, depletion and amortization		16,865			13,318
Gains on asset disposals		(280	)		(455	)
Deferred income taxes		2,543			513
Stock-based compensation expense (credit)		(4,060	)		(1,717	)
Excess tax benefits from stock-based compensation		(1,212	)		(3,287	)
Loss on debt retirements		907			--
Other - net		(1,006	)		(142	)
Changes in operating assets and liabilities
Receivables - net		14,269			(17,458	)
Inventories		(12,515	)		8,950
Prepaid expenses		1,366			1,735
Accounts payable and accrued liabilities		(16,920	)		(5,319	)
Net cash provided by operating activities		10,615			14,052
INVESTING ACTIVITIES
Capital expenditures - expansions		(48,037	)		(86,133	)
Capital expenditures - other		(40,699	)		(17,459	)
Cash designated for property acquisitions		26,958			--
Proceeds from asset disposals		512			1,288
Investments in life insurance contracts		1,464			(415	)
Other - net		192			(24	)
Net cash used by investing activities		(59,610	)		(102,743	)
FINANCING ACTIVITIES
Long-term borrowings		327,250			124,000
Debt retirements		(197,555	)		(46,173	)
Debt issuance costs		(2,306	)		(944	)
Stock option exercises		1,480			599
Excess tax benefits from stock-based compensation		1,212			3,287
Common dividends paid		(2,065	)		(2,051	)
Net cash provided by financing activities		128,016			78,718
Increase (decrease) in cash and cash equivalents		79,021			(9,973	)
Cash and cash equivalents at beginning of period		39,527			15,138
Cash and cash equivalents at end of period	$	118,548		$	5,165

Texas Industries, Inc.

Consolidated Statements of Operations

In $ Thousands

	FY2003			FY2004			FY2005			FY2006			FY2007			FY2008															FY2009
																Q1			Q2			Q3			Q4			Total			Q1			Q2		Q3		Q4		Total
Shipments
Cement (Thousands of Tons)		4,900			5,298			5,394			5,136			5,074			1,290			1,319			1,142			1,284			5,035			1,218
Aggregates (Thousands of Tons)		19,003			22,282			23,616			25,246			22,114			5,551			5,863			5,010			5,427			21,851			5,201
Ready-mix (Thousands of Cubic Yards)		3,513			3,562			3,678			3,830			3,665			998			1,050			857			939			3,844			947
Price
Cement ($ per Ton)		68.90			68.48			75.05			87.14			95.06			95.69			92.88			91.01			92.49			93.07			91.43
Aggregates ($ per Ton)		5.55			5.43			5.68			6.08			7.03			7.17			7.39			7.52			7.69			7.44			7.82
Ready-mix ($ per Cubic Yard)		57.88			57.94			60.54			69.25			75.87			80.17			80.19			81.26			81.71			80.83			83.30
Net Sales		-
Cement		337,624			362,824			404,823			447,594			482,379			123,423			122,586			103,891			118,773			468,673			111,404
Aggregates		105,521			120,997			134,220			153,480			155,562			39,804			43,324			37,699			41,755			162,582			40,679
Ready-mix		203,349			206,394			222,680			265,254			278,067			79,990			84,233			69,699			76,730			310,652			78,894
Other		117,810			116,108			104,847			118,555			119,798			32,175			31,375			30,155			38,901			132,606			32,275
Interplant		(100,478	)		(98,353	)		(105,576	)		(121,127	)		(118,406	)		(32,432	)		(34,750	)		(30,488	)		(32,791	)		(130,461	)		(31,992	)
Delivery Fees		54,292			59,209			73,809			80,166			78,850			20,494			21,705			19,579			23,024			84,802			25,132
Net Sales		718,118			767,179			834,803			943,922			996,250			263,454			268,473			230,535			266,392			1,028,854			256,392
Costs and Expenses (Income)
Cost of Products Sold		596,737			637,347			692,414			766,941			760,160			217,437			208,271			190,980			218,331			835,019			223,754
Selling, General and Administrative		70,666			74,814			78,434			88,663			108,106			22,183			21,064			20,717			32,256			96,220			17,338
Interest		14,827			24,102			23,533			31,155			14,074			-			-			-			2,505			2,505			7,245
Loss on Debt Retirements and Spin-off Charges					12,302			894			113,247			48			-			-			-						-			907
Other Income		(4,762	)		(40,482	)		(22,727	)		(47,270	)		(36,629	)		(2,253	)		(3,442	)		(2,086	)		(23,782	)		(31,563	)		(8,241	)
		677,468			708,083			772,548			952,736			845,759			237,367			225,893			209,611			229,310			902,181			241,003			-		-		-		-
Income from Continuing Operations Before Income Taxes		40,650			59,096			62,255			(8,814	)		150,491			26,087			42,580			20,924			37,082			126,673			15,389			-		-		-		-
Income Taxes		13,485			16,819			16,811			(8,225	)		49,584			8,173			13,265			6,300			11,521			39,259			4,731
Income from Continuing Operations		27,165			42,277			45,444			(589	)		100,907			17,914			29,315			14,624			25,561			87,414			10,658			-		-		-		-
Income (Loss) from Discontinued Operations - net of Income Taxes		(51,362	)		(4,378	)		79,079			8,691			-															-												-
Income (Loss) before Accounting Change		(24,197	)		37,899			124,523			8,102			100,907			17,914			29,315			14,624			25,561			87,414			10,658			-		-		-		-
Cumulative Effect of Accounting Change - net of Income Taxes		-			(1,551	)		-			-			-			-			-			-			-			-			-			-		-		-		-
Net Income		(24,197	)		36,348			124,523			8,102			100,907			17,914			29,315			14,624			25,561			87,414			10,658			-		-		-		-

Texas Industries, Inc.

Consolidated Balance Sheets

In $ Thousands

	5/31/04		5/31/05		5/31/06		5/31/07		8/31/07		11/30/07		2/29/08		5/31/08		8/31/08		11/30/08		2/28/09		5/31/09
Cash		133,053		251,600		84,139		15,138		5,165		26,216		9,632		39,527		118,548
Short-term Investments		-		-		50,606		-		-		-
Accounts Receivable		108,364		117,363		132,849		142,610		160,079		163,990		151,708		155,676		140,703
Inventories		89,373		83,291		102,052		121,467		112,517		112,824		123,735		130,181		142,695
Deferred Income Taxes and Prepaid Expenses		31,553		28,754		33,599		17,621		13,047		19,785		22,482		30,398		28,449
Total Current Assets		362,343		481,008		403,245		296,836		290,808		322,815		307,557		355,782		430,395		-		-		-
Goodwill		61,307		61,307		58,395		58,395		58,395		60,110		60,110		60,110		60,110
Real Estate and Investments		42,430		100,200		125,913		111,414		112,217		48,037		23,834		59,971		34,720
Deferred Income Taxes, Intangibles and Other Charges		39,259		27,571		22,706		11,369		12,031		12,097		11,376		11,332		13,907
Net Assets of Discontinued Operations		798,353		836,100		-		-		-		-		-		-
		941,349		1,025,178		207,014		181,178		182,643		120,244		95,320		131,413		108,737		-		-		-
Property, Plant and Equipment		865,133		882,816		953,474		1,289,654		1,366,431		1,442,445		1,484,417		1,542,508		1,624,749
Accumulated Depreciation		452,324		470,163		483,163		505,432		510,881		517,557		525,274		514,744		527,243
Net Property, Plant and Equipment		412,809		412,653		470,311		784,222		855,550		924,888		959,143		1,027,764		1,097,506		-		-		-
Total Assets		1,716,501		1,918,839		1,080,570		1,262,236		1,329,001		1,367,947		1,362,020		1,514,959		1,636,638		-		-		-
Accounts Payable		53,497		58,022		63,581		109,749		94,516		115,408		89,895		128,497		123,221
Accrued Interest, Wages and Other Items		38,833		49,449		55,059		57,891		41,710		50,568		42,754		47,846		33,881
Current Portion of Long Term Debt		699		688		681		1,340		213		217		221		7,725		229
Total Current Liabilities		93,029		108,159		119,321		168,980		136,439		166,193		132,870		184,068		157,331		-		-		-
Long Term Debt		598,412		603,126		251,505		274,416		353,585		334,517		344,438		401,880		539,195
Convertible Subordinated Debentures		199,937		199,937		159,725		-		-		-		-		-		-		-		-		-
Deferred Income Taxes and Other Credits		63,139		80,050		76,955		90,358		89,400		89,014		90,274		112,498		111,187
Shareholders Equity		761,984		927,567		473,064		728,482		749,577		778,223		794,438		816,513		828,925
Total Liabilities and Shareholders Equity		1,716,501		1,918,839		1,080,570		1,262,236		1,329,001		1,367,947		1,362,020		1,514,959		1,636,638		-		-		-

Texas Industries, Inc.

Consolidated Statements of Cash Flows

In $ Thousands

	FY2003			FY2004			FY2005			FY2006			FY2007			FY2008															FY2009
																Q1			Q2			Q3			Q4			Total			Q1			Q2		Q3		Q4		Total
CONTINUING OPERATIONS
Operating Activities
Income from Continuing Operations		27,165			42,277			45,444			(589	)		100,907			17,914			29,315			14,624			25,561			87,414			10,658			-		-		-
Adjustments to Reconcile Income from Continuing Operations to Cash Provided (Used) by Continuing Operating Activities
Loss on Debt Retirements		-			12,302			-			107,006			48			-												-			-									-
Loss (Gain) on Asset Disposals		687			(37,997	)		(6,582	)		(34,768	)		(2,917	)		(455	)		(462	)		(279	)		(18,214	)		(19,410	)		(280	)
Depreciation, Depletion and Amortization		49,196			47,409			46,474			44,955			46,356			13,318			13,846			13,816			14,597			55,577			16,865
Deferred Income Taxes (Benefit)		(27,726	)		319			33,811			6,581			11,354			513			614			3,527			14,913			19,567			2,543
Other - Net		6,000			5,391			8,889			7,570			15,406			(5,146	)		(507	)		753			6,471			1,571			(5,371	)
Changes in Operating Assets and Liabilities											-			-															-
Receivables Sold		(7,321	)		(72,032	)		-			-			-			-												-
Accounts Receivable - Net		(1,258	)		1,052			(8,873	)		(5,060	)		846			(17,458	)		(3,899	)		12,312			(20,462	)		(29,507	)		14,269
Inventories		(1,635	)		1,664			6,082			(18,761	)		(18,975	)		8,950			(307	)		(10,911	)		(6,446	)		(8,714	)		(12,515	)
Prepaid Expenses		2,099			(5,744	)		(1,680	)		63			1,392			1,735			185			286			(4,239	)		(2,033	)		1,366
Accounts Payable and Accrued Liabilities		3,889			(3,011	)		17,017			(12,155	)		31,541			(5,319	)		7,639			(18,287	)		13,057			(2,910	)		(16,920	)
Other Credits		2,819			7,375			3,838			2,527			-			-												-			-									-
Cash Provided (Used) by Continuing Operations		53,915			(995	)		144,420			97,369			185,958			14,052			46,424			15,841			25,238			101,555			10,615			-		-		-		-
Investing Activities
Capital Expenditures		(32,327	)		(15,887	)		(46,178	)		(110,245	)		(317,658	)		(103,592	)		(71,496	)		(66,592	)		(70,845	)		(312,525	)		(88,736	)
Proceeds from Asset Disposals		11,258			47,243			7,136			23,107			5,552			1,288			1,078			1,562			30,994			34,922			512
Purchases of Short-term Investments - net											(50,500	)		50,500			-						-						-
Investments in Insurance Contracts		(713	)		(1,162	)		(58,798	)		(4,366	)		(6,061	)		(415	)		65,944			22,611			11,063			99,203			1,464
Other - Net		2,961			(2,875	)		(677	)		612			(336	)		(24	)		79			163			(28,850	)		(28,632	)		27,150
Cash Provided (Used) by Investing Activities		(18,821	)		27,319			(98,517	)		(141,392	)		(268,003	)		(102,743	)		(4,395	)		(42,256	)		(57,638	)		(207,032	)		(59,610	)		-		-		-		-
Financing Activities
Long Term Borrowings		366,640			718,097			-			250,000			38,000			124,000			65,000			24,000			153,000			366,000			327,250
Debt Retirements		(371,344	)		(592,398	)		(699	)		(600,700	)		(25,521	)		(46,173	)		(84,064	)		(14,076	)		(88,053	)		(232,366	)		(197,555	)
Debt Issuance Costs		(1,458	)		(16,378	)		(39	)		(7,363	)		-			(944	)		(89	)		(119	)		(1,008	)		(2,160	)		(2,306	)
Debt Retirement Costs					(8,605	)		-			(96,029	)		(6	)		-												-
Interest Rate Swap Terminations					8,358			(6,315	)		-			-			-												-
Stock Option Exercises		512			2,541			41,399			7,510			6,394			599			131			1,948			637			3,315			1,480
Common Dividends Paid		(6,315	)		(6,336	)		(6,643	)		(6,908	)		(7,517	)		(2,051	)		(2,052	)		(2,058	)		(2,061	)		(8,222	)		(2,065	)
Other - Net		(1,961	)		(26	)		-			-			1,694			3,287			96			136			(220	)		3,299			1,212
Cash Provided (Used) by Financing Activities		(13,926	)		105,253			27,703			(453,490	)		13,044			78,718			(20,978	)		9,831			62,295			129,866			128,016			-		-		-		-
Net Cash Provided (Used) by Continuing Operations		21,168			131,577			73,606			(497,513	)		(69,001	)		(9,973	)		21,051			(16,584	)		29,895			24,389			79,021			-		-		-		-
DISCONTINUED OPERATIONS
Cash Provided (Used) by Discontinued Operating Activities		(5,797	)		12,668			73,104			(7,778	)		-															-												-
Cash Used by Discontinued Investing Activities		(23,265	)		(14,068	)		(28,163	)		(2,757	)		-															-												-
Cash Used by Discontinued Financing Activities		(2,117	)		-			-			340,587			-															-												-
Net Cash Provided (Used) by Discontinued Operations		(31,179	)		(1,400	)		44,941			330,052			-			-			-			-			-			-			-			-		-		-		-
Increase (Decrease) in Cash and Cash Equivalents		(10,011	)		130,177			118,547			(167,461	)		(69,001	)		(9,973	)		21,051			(16,584	)		29,895			24,389			79,021			-		-		-		-
Beginning Cash and Cash Equivalents		12,887			2,876			133,053			251,600			84,139			15,138			5,165			26,216			9,632			15,138
Ending Cash and Cash Equivalents		2,876			133,053			251,600			84,139			15,138			5,165			26,216			9,632			39,527			39,527			79,021			-		-		-		-

Texas Industries, Inc.

Reconciliation of EBITDA to Net Income and Cash Provided (Used) by Continuing Operations

In $ Thousands

	FY2003			FY2004			FY2005			FY2006			FY2007			FY2008															FY2009
																Q1			Q2			Q3			Q4			Total			Q1			Q2		Q3		Q4		Total
EBITDA Defined
Net Income (Loss) from Continuing Operations		27,165			42,277			45,444			(589	)		100,907			17,914			29,315			14,624			25,561			87,414			10,658			-		-		-		-
Plus (minus):
Interest		14,827			24,102			23,533			31,155			14,074			-			-			-			2,505			2,505			7,245			-		-		-		-
Income Taxes (Benefit)		13,485			16,819			16,811			(8,225	)		49,584			8,173			13,265			6,300			11,521			39,259			4,731			-		-		-		-
Depreciation, Depletion & Amortization		49,196			47,409			46,474			44,955			46,356			13,318			13,846			13,816			14,597			55,577			16,865			-		-		-		-
Loss on Early Retirement of Debt and Spin-off Charges		-			12,302			894			113,247			48			-			-			-			-			-			907			-		-		-		-
EBITDA		104,673			142,909			133,156			180,543			210,969			39,405			56,426			34,740			54,184			184,755			40,406			-		-		-		-
EBITDA represents income from continuing operations before interest, income taxes, depreciation and amortization, and loss on early retirement of debt EBITDA is presented because we believe it is a useful indicator of our performance and our ability to meet debt service and capital expenditure requirements. It is not, however, intended as an alternative measure of operating results or cash flow from operations as determined in accordance with generally accepted accounting principles. EBITDA is not necessarily comparable to similarly titled measures used by other companies.
EBITDA Reconciliation
Cash from Continuing Operating Activities		53,915			(995	)		144,420			97,369			185,958			14,052			46,424			15,841			25,238			101,555			10,615			-		-		-		-
Plus (minus):
Changes in Operating Assets and Liabilities		1,407			70,696			(16,384	)		33,386			(14,804	)		12,092			(3,618	)		16,600			18,090			43,164			13,800			-		-		-		-
Deferred Taxes (Benefit)		27,726			(319	)		(33,811	)		(6,581	)		(11,354	)		(513	)		(614	)		(3,527	)		(14,913	)		(19,567	)		(2,543	)		-		-		-		-
Income Taxes (Benefit)		13,485			16,819			16,811			(8,225	)		49,584			8,173			13,265			6,300			11,521			39,259			4,731			-		-		-		-
Loss (Gain) on Disposal of Assets		(687	)		37,997			6,582			34,768			2,917			455			462			279			18,214			19,410			280			-		-		-		-
Interest		14,827			24,102			23,533			31,155			14,074			-			-			-			2,505			2,505			7,245			-		-		-		-
Spin-off Charges		-			-			894			6,241			-			-			-			-			-			-			907			-		-		-		-
Other - net		(6,000	)		(5,391	)		(8,889	)		(7,570	)		(15,406	)		5,146			507			(753	)		(6,471	)		(1,571	)		5,371			-		-		-		-
EBITDA		104,673			142,909			133,156			180,543			210,969			39,405			56,426			34,740			54,184			184,755			40,406			-		-		-		-

Texas Industries, Inc.

Business Segment Summary

$Thousands

	FY2004			FY2005			FY2006			FY2007			FY2008															FY2009
													Q1			Q2			Q3			Q4			Total			Q1			Q2		Q3		Q4		Total
Segment Net Sales (Including Delivery Fees)
Cement		383,623			431,895			471,482			504,923			129,497			129,234			110,797			126,457			495,985			121,363
Aggregates		206,970			225,972			256,109			273,958			71,863			75,958			68,166			78,110			294,097			71,797
Consumer Products		274,939			282,512			337,458			335,775			94,526			98,031			82,060			94,616			369,233			95,224
Eliminations		(98,353	)		(105,576	)		(121,127	)		(118,406	)		(32,432	)		(34,750	)		(30,488	)		(32,791	)		(130,461	)		(31,992	)
Total Net Sales		767,179			834,803			943,922			996,250			263,454			268,473			230,535			266,392			1,028,854			256,392			-		-		-		-
Operating Profit
Cement		66,069			82,719			110,953			172,331			17,218			33,950			24,299			26,031			101,498			17,305
Aggregtates		19,047			29,902			48,339			31,251			11,660			11,085			5,304			28,043			56,092			8,936
Consumer Products		11,013			5,259			10,349			9,846			4,077			4,607			(481	)		3,380			11,583			(450	)
Unallocated Overhead and Other Income-Net		26,680			(4,307	)		(10,181	)		(11,728	)		(1,734	)		(1,746	)		(2,624	)		(3,863	)		(9,967	)		(2,485	)
Total Operating Profit		122,809			113,573			159,460			201,700			31,221			47,896			26,498			53,591			159,206			23,306			-		-		-		-
Corporate
Selling, General and Administrative		(28,658	)		(33,272	)		(39,110	)		(45,194	)		(5,809	)		(7,379	)		(6,119	)		(14,585	)		(33,892	)		(1,950	)
Interest		(24,102	)		(23,533	)		(31,155	)		(14,074	)		-									(2,505	)		(2,505	)		(7,245	)
Loss on Debt Retirements and Spin-off Charges		(12,302	)		(894	)		(113,247	)		(48	)		-												-			(907	)
Other Income		1,349			6,381			15,238			8,107			675			2,063			545			581			3,864			2,185
Income (loss) from Continuing Operations		59,096			62,255			(8,814	)		150,491			26,087			42,580			20,924			37,082			126,673			15,389			-		-		-		-
before Income Taxes
Major Gains (Losses) in Other Income
Unallocated Overhead - Sale of Brick Assets		34,710			-			-			-			-			-			-			-			-			-			-		-		-		-
Aggregates - Sale of Emissions Credits		-			6,225			-			-			-			-			-			-			-												-
Aggregates - Sale of Real Estate		-			-			23,987			-			-			-			-			5,146			5,146												-
Cement - Cement Antidumping Settlement		-			-			-			19,803			-			-			-			-			-												-
Sale of Southern Louisiana Aggregates Operation																							10,093			10,093												-
Cement - Sale of Emissions Credits																							3,879			3,879												-
Corporate - Oil and Gas Bonus Payment																													1,636
Cement - Oil and Gas Bonus Payment																													2,781
Please note: Starting with the quarter ending August 2008, we report cement treated material operations and transportation overhead activities, both of which are not significant to operating profit, in our cement segment. Cement treated material operations were previously reported in our aggregate segment. Our transportation overhead activities were previously reported as a part of unallocated overhead and other income-net. The historical quarterly financial data above has not been altered to reflect these reclassifications pending the reclassification for all quarters of FY 2008. The data below is consistent with the reclassification implemented August 2008.
Segment Net Sales (Including Delivery Fees) as Reclassified August 2008
Cement														131,135															121,363
Aggregates														70,225															71,797
Operating Profit as Reclassified August 2008
Cement														17,841															17,305
Aggregates														11,442															8,936
Unallocated Overhead and Other Income-Net														(2,139	)														(2,485	)