Walter Industries, Inc. Announces 400,000 Ton Per Year Expansion of Surface Mining...

Walter Industries, Inc. Announces 400,000 Ton Per Year Expansion of Surface
Mining Operations and Doubles Quarterly Dividend to $0.10 Per Share

TAMPA, Fla., July 31 /PRNewswire-FirstCall/ -- Walter Industries, Inc.
(NYSE: WLT), a leading producer and exporter of U.S. metallurgical coal for
the global steel industry, announced today that its Board of Directors has
approved a plan to expand the Company's United Land subsidiary's surface
mining operations by opening a new coal mine with 0.4 million tons of annual
capacity.
The Board also approved a 100 percent increase to its regular quarterly
dividend rate - to $0.10 per common share.
"The decision to develop United Land's new mine illustrates our commitment
to reinvest our strong cash flow into organic opportunities to grow our
business," said Company Chairman Michael T. Tokarz. "At the same time, the
increase in our dividend rate reflects our confidence in the continued
strength of the cash flows from Walter Industries' core Natural Resources
businesses. Both of these initiatives reward our shareholders for their
confidence in us."
Surface Mining Expansion
United Land's new mine - to be known as Flat Top Mine - is a 600-acre
surface coal mine with reserves of approximately 2.3 million tons of steam and
industrial coal on land owned by the Company. Development of the mine will
begin immediately and, because permits are already in place, coal is expected
to be available for sale by May 2009 and is expected to be accretive to
earnings in its first year of operation. United Land will invest approximately
$30 million to develop the mine, which will employ approximately 50 people,
and will be located in Jefferson County, Ala., 11 miles northwest of
Birmingham.
Dividend Payment
The dividend increase is Walter Industries' second such increase in the
last 18 months. The Company last announced a dividend increase on Feb. 7,
2007, when it increased the dividend from $0.04 to $0.05 per common share. The
$0.10 per share dividend is payable on Sept. 12, 2008 to shareholders of
record at the close of business on Aug. 8, 2008.
About Walter Industries
Walter Industries, Inc., based in Tampa, Fla., is a leading producer and
exporter of metallurgical coal for the global steel industry and also produces
steam coal, coal bed methane gas, furnace and foundry coke and other related
products. The Company also operates a mortgage financing and affordable
homebuilding business. The Company has annual revenues of approximately $1.2
billion and employs approximately 2,500 people. For more information about
Walter Industries, please visit the Company Web site at www.walterind.com .
Safe Harbor Statement
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements, including expressions such as "believe," "anticipate," "expect,"
"estimate," "intend," "may," "will," and similar expressions involve known and
unknown risks, uncertainties, and other factors that may cause the Company's
actual results in future periods to differ materially from the expectations
expressed or implied by such forward-looking statements. These factors
include, among others, the following: the market demand for the Company's
products as well as changes in costs and the availability of raw material,
labor, equipment and transportation; changes in weather and geologic
conditions; changes in extraction costs, pricing and our assumptions and
projections concerning our reserves in the Company's mining operations;
changes in customer orders; pricing actions by the Company's competitors,
customers, suppliers and contractors; changes in governmental policies and
laws; changes in the mortgage-backed capital markets; changes in general
economic conditions; and the successful implementation and anticipated timing
of any strategic actions and objectives that may be pursued, including our
announced separation of the Financing and Homebuilding business from the
Company. Forward-looking statements made by the Company in this release, or
elsewhere, speak only as of the date on which the statements were made. Any
forward-looking statements should be considered in context with the various
disclosures made by us about our businesses, including the Risk Factors
described in our 2007 Annual Report on Form 10-K and our other filings with
the Securities and Exchange Commission. The Company disclaims any duty to
update its forward-looking statements as of any future date.
SOURCE Walter Industries, Inc.

Investors: Mark H. Tubb, Vice President - Investor Relations, +1-813-871-4027,
mtubb@walterind.com, Media: Michael A. Monahan, Director - Corporate
Communications, +1-813-871-4132, mmonahan@walterind.com