Headwaters Technology Innovation (HTI) and Axens Join Efforts on Ebullated Bed Technology for Heavy Oil Upgrading

  Headwaters Technology Innovation (HTI) and Axens Join Efforts on Ebullated
  Bed Technology for Heavy Oil Upgrading

Business Wire

SOUTH JORDAN, Utah -- May 15, 2013

HEADWATERS INCORPORATED (NYSE: HW) announced today that HTI, a subsidiary of
Headwaters, has entered into a technology alliance with Axens. Axens is
recognized as one of the world’s leading providers of technologies, catalysts
and services for oil refineries. The purpose of the alliance is to promote the
combined use of Axens’ and HTI’s technologies to produce clean liquid fuels
from residual (“bottom-of-the-barrel”) heavy oil.

The alliance enables the companies to offer HTI’s proprietary HCAT^®
Hydrocracking Technology in conjunction with Axens’ H-Oil^® ebullated bed
hydrocracking process for residue upgrading. Ebullated bed hydrocracking
reactors are currently in use at 12 refineries around the world, with several
new H-Oil Units in development. While all ebullated bed systems are designed
to attain relatively high levels of residual oil conversion, the combination
of the H-Oil and HCAT Technologies, through the addition of HTI’s proprietary
liquid catalyst precursor, enables even higher performance levels, either
through enabling higher conversion levels than were previously possible, or by
allowing refiners to utilize poorer-quality, lower cost crude oil feedstocks.

Christian Dupraz, Axens’ Senior Executive Vice President for Process
Licensing, stated, “This strategic alliance with HTI will allow refineries
around the world and Axens H-Oil operators to benefit from the integration of
our two complementary technologies. Axens, a global leader in Residue
Hydrocracking technologies, will now be able to offer the most advanced and
commercially proven residual oil upgrading process, thanks in part to the
addition of HTI’s HCAT dispersed-catalyst technology.”

Stephanie Black, President of Headwaters’ subsidiary HTI, made the observation
that “We are very excited to have formed this alliance with Axens. The
combination of Axens’ H-Oil technology with HTI’s HCAT technology should make
the utilization of ebullated bed hydrocracking technology very attractive to
refiners globally.”

About Headwaters Incorporated

Headwaters Incorporated is improving lives through innovative advancements in
construction materials through application, design, and purpose. Headwaters is
a diversified growth company providing products, technologies and services to
the heavy construction materials, light building products, and energy
technology industries. Through its coal combustion products, building
products, and energy businesses, the Company has been able to improve
sustainability by transforming underutilized resources into valuable products.

About Axens

Axens, www.axens.net, is an international provider of advanced technologies,
catalysts, adsorbents and services, with a global reputation for basic
engineering design excellence. The main scope of Axens' business is focused on
the conversion of oil, coal, natural gas and biomass to clean fuels, as well
as production and purification of major petrochemical intermediates. Axens'
global offer is based on: highly trained human resources, modern production
facilities and extensive commercial feedback from plants using our processes
and catalysts all around the world.

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 licensing of residue
hydrocracking technology and catalyst sales to oil refineries, results from
the sale of coal cleaning assets, the development, commercialization, and
financing of new products and 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, anticipated benefits from the sale
of coal cleaning assets, and the marketability of the coal combustion
products, building products and catalysts, 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. In some cases, words such
as “may,” “should,” “intends,” “plans,” “expects,” “anticipates,” “targets,”
“goals,” “projects,” “believes,” “seeks,” “estimates,” “forecasts,” or
variations of such words and similar expressions, or the negative of such
terms, may help to identify such forward-looking statements. In addition, 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 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, 2012, 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 press release. 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.


Headwaters Incorporated
Sharon Madden
Vice President of Investor Relations
Financial Profiles
Tricia Ross, 916-939-7285
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