Walter Industries, Inc. (fka WLTGQ)

[The GidDy uP Kid]

The Company also announced that JWH Holding Company has entered into a definitive agreement to merge with Hanover Capital Mortgage Holdings, Inc. (Amex: HCM - News; "Hanover"), a New Jersey-based real estate investment trust ("REIT"). The merger will occur immediately following the spin-off and the combined company will continue to operate as a publicly traded REIT following the merger. The new company will be named Walter Investment Management Corporation ("Walter Investment Management").

"Today marks a momentous step in our strategy to transform Walter Industries into a pure-play natural resources and energy company," said Company Chairman Michael T. Tokarz. "The spin-off of the Financing business will preserve the significant value of its portfolio for our shareholders and will allow for the efficient distribution of its earnings through dividends following the merger of JWH Holding Company and Hanover."