Eagle Materials Inc (EXP)

[Democritus_of_Abdera]

Wallboard Operating Margins....

In the Conference Call of Feb 1, 2007, Paul Newton, a private investor, asked Steven Rowley to identify the most important dynamic that sets EXP apart from the competition.

Mr. Rowley’s response was: “Being a low cost producer allows us to have margins throughout all of the cycle and then when the cycle gets difficult it really allows us to separate ourselves and have a lot of staying power with our production capacity.”

As stated in Form 10-Q filed 2/7/07...

Wallboard production costs for the 9 months ending Dec 31, 2006 was $85.20/MSF (the average net sales price for wallboard was $168.03 and the operating margin was $82.93)

During the same period of 2005 the wallboard production cost was $82.62/MSF.

Transportation and energy costs represent significant portions of the variable costs of the wallboard segment.