CEMEX Lyons Plant Agrees to Settlement with State - CEMEX Lyons Plant Agrees to Settlement with State - CEMEX USA

Lyons, Colorado - December 22, 2006

Points to Major Changes & Community Cooperation as Commitment Going Forward

Stressing the major, ongoing positive changes that have occurred at the facility, the CEMEX cement manufacturing plant in Lyons today closed a major chapter in its history by agreeing to a settlement with state regulators for primarily data monitoring issues, according to Steve Goodrich, the plant manager. The company stressed that the alleged violations neither imposed nor caused any threats to public health or the environment.

CEMEX and the state Air Pollution Control Division of the Colorado Department of Public Health and Environment (CDPHE) have agreed that CEMEX will do the following:

• Invest $500,000 toward a Supplemental Environmental Project;
• Pay $450,000 to StEPP Foundation, a non-profit organization;
• Pay $350,000 to the state's general fund;
• Spend $200,000 for air monitoring at the plant site.

The company also agreed to a 12-month moratorium on the burning of tires as fuel for the kiln at the plant - a major source of concern by local residents.

The plant is required to monitor temperature, which is a surrogate for dioxin and furan. When excess temperature recordings were discovered, the company immediately commenced an extensive investigation and corrected the issues surrounding the temperature monitoring.

CEMEX subsequently conducted testing, supervised and approved by CDPHE, which clearly showed that, at the temperatures the plant operates under, there were no exceedances of dioxin or furan.

"Reaching a settlement with our state regulators is a positive way for us to continue our momentum, building on the improvements at our plant and in our communications with our neighbors and all levels of government," said Goodrich, who took the helm of the facility in May 2006.

Goodrich said the specific improvements already implemented at the plant (or in process) have focused on three general areas: reducing dust, reducing noise and improving environmental sustainability.

Controlling Dust

• A reduced footprint at the plant that significantly lessens the distance the raw materials must travel at the site, reducing dust on and around the facility.
• Paving of internal roads to reduce the dust produced by vehicles.
• Automating the truck wash and installing permanent curbing to channel all cement trucks through the wash.
• Redesigning and installing new dust collectors.
• Using technology to reduce dust coming from raw material conveyor belts on the site.

Reducing Noise

• Using much quieter high pressure air canisters to eliminate debris in plant's spray tower instead of dynamite.
• Have and will continue to conduct scientific noise surveys to determine levels in the area. Future noise surveys will be conducted in part to evaluate actions taken to reduce our noise level at the fence line.

Improving Environmental Sustainability

• Reclamation and re-vegetation of previously disturbed areas with native species grass.
• Extending green areas of the facility.
• Implementing a recyclable waste collection center.
• Planting additional trees on site.

CEMEX also has expanded its staff of environmental professionals who are charged with the day-to-day oversight of the plant's compliance and environmental standards.

The plant has been engaged in an aggressive community outreach effort that includes working with the Citizens Advisory Panel (CAP) that meets monthly, the publishing of a community newsletter sent to homes throughout Lyons and an open house held this summer that drew more than 300 neighbors.

CEMEX is a growing global building solutions company that provides high quality products and reliable service to customers and communities in more than 50 countries throughout the world. Commemorating its 100th anniversary in 2006, the company has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. For more information, visit www.cemexusa.com.

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