Ply Gem Reports Fourth Quarter 2008 Results

CARY, N.C.--(Business Wire)--
Ply Gem Holdings, Inc. ("Ply Gem" or the "Company"), a leading manufacturer of
residential exterior building products in North America, today announced fourth
quarter 2008 net sales of $234.5 million, a 26.2% decrease from the $317.9
million for the same period in 2007. For the full year of 2008, net sales were
$1,175.0 million or 13.8% lower than the $1,363.5 million of net sales for the
full year of 2007.

Adjusted EBITDA for the fourth quarter of 2008 was $5.7 million compared to
$32.3 million for the fourth quarter of 2007. For the full year of 2008,
Adjusted EBITDA was $92.5 million compared to $172.5 million for the full year
of 2007.

Our net loss before unusual items for the fourth quarter was $27.9 million as
compared to a net loss of $10.0 million for the fourth quarter of 2007. For the
full year of 2008, our net loss before unusual items was $55.5 million as
compared to net income of $7.5 million for the full year of 2007.

Gary E. Robinette, President and CEO, said "Ply Gem's fourth quarter and full
year sales and EBITDA results reflect the challenging market conditions that
continue to exist in the current economic environment. We continue to pursue the
initiatives that are helping us compete effectively in this historic housing
slump. We continue to realign our cost structure for current and future market
demand. At the same time, we are focused on maximizing cash flow and
outperforming the market place in all business units, allowing us to emerge
stronger when the economy recovers."

Shawn K. Poe, Vice President and Chief Financial Officer, said "On March 25,
2009, Ply Gem announced that it would incur a fourth quarter non-cash goodwill
impairment charge of approximately $250.0 million in addition to the $200.0
million non-cash goodwill impairment charge recorded in the Company`s third
quarter financial results. These non-cash impairment charges are a result of the
depressed market conditions that currently exist in residential new construction
and remodeling markets. These goodwill impairment charges did not affect Ply
Gem`s cash position, cash flow from operating activities, revolver availability
or liquidity position and does not have any affect on current or future
operations of the Company."

Ply Gem Industries, Inc. is a leading manufacturer of residential exterior
building products. The company sells a broad range of vinyl siding, vinyl,
aluminum, wood and clad windows, aluminum trim coil, aluminum siding and
accessories, and vinyl and composite fence and railing products. Ply Gem is a
wholly-owned subsidiary of Ply Gem Holdings, Inc. For more information, please
visit the Company`s website at www.plygem.com.

Ply Gem management will host a conference call on March 30, 2009 at 11:00 a.m.
EDT to report fourth quarter results. To participate please call 866-314-5050
and use call confirmation number 43670819.

Note: As used herein, the term "Ply Gem" refers to Ply Gem Holdings, Inc. and all its subsidiaries, including Ply Gem Industries, Inc., unless the context indicates otherwise.
This term is used for convenience only and is not intended as a precise description of any of the separate corporations.

This document and oral statements made from time to time by our representatives
may contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based on the
Company`s current plans and expectations and involve risks and uncertainties
that could cause actual future activities and results of operations to be
materially different from those set forth in the forward-looking statements.
Important factors impacting such forward-looking statements include the
availability and cost of raw materials and purchased components, the level of
construction and remodeling activity, changes in general economic conditions,
the rate of sales growth, and product liability claims. The Company undertakes
no obligation to update publicly any forward-looking statements, whether as a
result of new information, future events, or otherwise. For further information,
please refer to the reports and filings of the Company with the Securities and
Exchange Commission.

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months ended
December 31, 2008 December 31, 2007
Revised (1)
(Amounts in thousands)

Net sales $ 234,541 $ 317,902
Costs and expenses:
Cost of products sold 201,772 260,752
Selling, general and administrative expenses 38,081 42,728
Amortization of intangible assets 4,911 4,406
Goodwill impairment 250,000 -
Intangible asset impairment - 4,150
Total costs and expenses 494,764 312,036
Operating earnings (loss) (260,223 ) 5,866
Foreign currency gain (loss) (356 ) 45
Interest expense (33,576 ) (24,244 )
Interest income 131 433
Loss before benefit for income taxes (294,024 ) (17,900 )
Benefit for income taxes (27,716 ) (5,330 )
Net loss $ (266,308 ) $ (12,570 )
Goodwill impairment, net of taxes 238,387 -
Intangible asset impairment, net of taxes - 2,532
Net loss before unusual items $ (27,921 ) $ (10,039 )

For the twelve months ended
December 31, 2008 December 31, 2007
Revised (1)
(Amounts in thousands)

Net sales $ 1,175,019 $ 1,363,546
Costs and expenses:
Cost of products sold 972,546 1,076,507
Selling, general and administrative expenses 162,940 162,609
Amortization of intangible assets 19,650 17,631
Goodwill impairment 450,000 -
Intangible asset impairment - 4,150
Total costs and expenses 1,605,136 1,260,897
Operating earnings (loss) (430,117 ) 102,649
Foreign currency gain (loss) (911 ) 3,961
Interest expense (138,015 ) (99,698 )
Interest income 617 1,704
Income (loss) before provision (benefit) for income taxes (568,426 ) 8,616
Provision (benefit) for income taxes (69,951 ) 3,634
Net income (loss) $ (498,475 ) $ 4,982
Goodwill impairment, net of taxes 425,096 -
Intangible asset impairment, net of taxes - 2,532
Financing costs, net of taxes 17,916 -
Net income (loss) before unusual items $ (55,463 ) $ 7,514

(1) Certain amounts in the prior fiscal year have been reclassified to conform to the presentation adopted in the current fiscal year.

The accompanying notes are an integral part of this unaudited condensed
consolidated statement of operations.

1. The accompanying condensed consolidated statements of operations of Ply Gem
Holdings, Inc. (the "Company") do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included.

The selected balance sheet data for the periods presented in Note 4 has been
derived from the December 31, 2008 and 2007 consolidated financial statements of
Ply Gem Holdings, Inc. and does not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements.

The Company`s fiscal quarters are based on periods ending on the last Saturday
of the last week in the quarter. Therefore the financial results of certain
fiscal quarters will not be exactly comparable to the prior and subsequent
fiscal quarters.

The accompanying statements of operations include the consolidated results of
operations for the periods from January 1, 2008 to December 31, 2008 and January
1, 2007 to December 31, 2007, of Ply Gem Holdings, Inc. and its subsidiaries.

2. Adjusted EBITDA means net income (loss) plus interest expense (net of
interest income), provision (benefit) for income taxes, depreciation and
amortization, non-cash foreign currency gain/(loss), amortization of non-cash
write-off of the portion of excess purchase price from acquisitions allocated to
inventories, goodwill impairment charges, and restructuring and integration
costs associated with acquisitions. Other companies may define Adjusted EBITDA
differently and, as a result, our measure of Adjusted EBITDA may not be directly
comparable to Adjusted EBITDA of other companies. Management believes that the
presentation of Adjusted EBITDA included in this press release provides useful
information to investors regarding our results of operations because it assists
both investors and management in analyzing and benchmarking the performance and
value of our business. Although we use Adjusted EBITDA as a financial measure to
assess the performance of our business, the use of Adjusted EBITDA is limited
because it does not include certain material costs, such as interest and taxes,
necessary to operate our business. Adjusted EBITDA included in this press
release should be considered in addition to, and not as a substitute for, net
earnings in accordance with GAAP as a measure of performance in accordance with
GAAP. You are cautioned not to place undue reliance on Adjusted EBITDA.

Ply Gem Holdings, Inc.
(Amounts in thousands)
For the three months ended
December 31, 2008 December 31, 2007
Revised (1)
Net loss $ (266,308 ) $ (12,570 )
Interest expense, net 33,445 23,811
Benefit for income taxes (27,716 ) (5,330 )
Depreciation and amortization 14,530 14,812
Goodwill impairment 250,000 -
Intangible asset impairment - 4,150
Non cash (gain)/loss on currency transaction 356 (45 )
Non cash charge of purchase price
allocated to inventories 19 1,289
Restructuring/integration expense 1,413 6,140
Adjusted EBITDA $ 5,739 $ 32,257

Ply Gem Holdings, Inc.
(Amounts in thousands)
For the twelve months ended
December 31, 2008 December 31, 2007
Revised (1)
Net income (loss) $ (498,475 ) $ 4,982
Interest expense, net 137,398 97,994
Provision (benefit) for income taxes (69,951 ) 3,634
Depreciation and amortization 61,765 54,067
Goodwill impairment 450,000 -
Intangible asset impairment - 4,150
Non cash (gain)/loss on currency transaction 911 (3,961 )
Non cash charge of purchase price
allocated to inventories 19 1,289
Restructuring/integration expense 10,859 10,356
Adjusted EBITDA $ 92,526 $ 172,511

3. Long-term debt amounts in the selected balance sheets at December, 2008 and
December 31, 2007 consisted of the following:

December 31, 2008 December 31, 2007
(Amounts in thousands)

Senior term loan facility $ - $ 677,910
ABL facility 60,000 -
Senior subordinated notes due 2012, net of unamortized premium of $146 and $186 360,146 360,186
Senior secured notes due 2013, net of unamortized discount of $5,960 694,040 -
1,114,186 1,038,096
Less current maturities - 6,873
$ 1,114,186 $ 1,031,223

4. The following is a summary of selected balance sheet amounts at December,
2008 and December 31, 2007:

December 31, 2008 December 31, 2007
Revised (1)
(Amounts in thousands)

Cash and cash equivalents $ 58,289 $ 52,053
Accounts receivable, less allowances 90,527 111,653
Inventories 123,412 131,982
Prepaid expenses and other current assets 19,985 16,462
Property and equipment, net 170,011 198,996
Intangible assets, net 193,604 213,257
Goodwill 390,779 835,820
Accounts payable 59,603 83,102
Current maturities of long-term debt - 6,873
Long-term debt, less current maturities 1,114,186 1,031,223
Stockholder's equity (deficit) (242,628 ) 241,787

Ply Gem Holdings, Inc.
Shawn Poe, CFO, 919-677-4019

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