US glass fiber demand to reach nearly 7 billion pounds in 2007.

Glass fiber demand in the US is projected to grow two percent annually to 6.9 billion pounds in 2007, valued at $6.9 billion. Textile glass fibers will exhibit the better growth prospects due to opportunities in reinforced plastics. Steady advances in glass fiber use will result from continued

material and technology improvements. Slower increases are anticipated for glass wool insulation due to its strong reliance on construction markets and a marked deceleration in residential building construction activity over the forecast period. These and other trends are presented in Glass Fibers, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Glass wool (fiberglass) insulation demand is expected to rise 1.7 percent annually to 4.1 billion pounds in 2007, paralleling the pace set between 1997 and 2002. Fiberglass advances will be stimulated by growing residential aftermarket demand and a rebounding nonresidential building construction segment. Further increases will be constrained by slow residential construction activity and declines in single-unit housing starts, since the residential construction market accounts for more than 70 percent of overall fiberglass insulation value.

Textile glass fiber demand will grow 2.5 percent yearly to 2.8 billion pounds in 2007. Advances will reflect opportunities in reinforced plastic applications brought about by needs for higher performing and more cost effective materials in construction and electrical/electronic equipment areas. Limited growth in motor vehicles, the second largest reinforced plastic use, will be attributable to slow production advances and the lack of significant new applications. Glass fibers are the leading reinforcement fiber in plastic products due to their low cost and good performance.

Glass Fibers (published 05/2003, 293 pages) is available for $3,900 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniaqroup.com.

A limited license to use or reprint information from this news release is granted to you provided attribution for the same--including, if possible, the price of the report--is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.

GLASS FIBER DEMAND
(million pounds)

                                                   % Annual Growth

Item                         1997   2002   2007    02/97     07/02

Glass Fiber Demand           5680   6260   6910     2.0       2.0
  Glass Wool                 3500   3800   4130     1.7       1.7
  Textile Glass              2180   2460   2780     2.4       2.5
    Reinforced Plastics       985   1070   1220     1.7       2.7
    Other Reinforced Uses     963   1129   1265     3.2       2.3
    Nonreinforced             232    261    295     2.4       2.5

[c] 2003 by The Freedonia Group, Inc.

Contact: Corrine Gangloff

Media Relations

phone: 440.684.9600

fax: 440.646.0484

pr@freedoniagroup.com