ELK Elkcorp

Lerach Coughlin Stoia Geller Rudman & Robbins LLP announced a Dallas County Court today granted an Order temporarily enjoining ElkCorp (NYSE:ELK) from implementing its shareholder rights agreement, or poison pill, and certain provisions of the Merger Agreement between ElkCorp and The Carlyle Group, including the $29 million termination fee. The Order will be in place until February 5, 2007, when the Court will hold a hearing to determine whether further injunctive relief is appropriate. The enjoined provisions are part of a Merger Agreement between ElkCorp and The Carlyle Group signed in December 2006 and amended as recently as January 22, 2007. The Carlyle Group is attempting to acquire ElkCorp for $42.00 per share via a tender offer which will expire on February 14, 2007. In order to facilitate The Carlyle Group�s acquisition of ElkCorp, ElkCorp agreed to waive its poison pill as part of the Merger Agreement. Another suitor, Building Materials Corp. of America (�BMCA�), has initiated a competing tender offer for ElkCorp, also offering $42.00 per share. The offer from BMCA, which has repeatedly outbid The Carlyle Group, is contingent on ElkCorp waiving its shareholder rights agreement (poison pill), which absent such a waiver, would prevent BMCA from accepting shares that might be tendered. Pursuant to the Order signed by Judge King Fifer, pending a hearing scheduled for February 5, 2007 on whether a preliminary injunction should be issued, ElkCorp is temporarily restrained from: (i) implementing its poison pill in response to any competing unsolicited offer to acquire the Company, including the outstanding offer from BMCA; (ii) paying a termination fee of $29 million to The Carlyle Group; and (iii) granting The Carlyle Group the option to purchase additional shares from ElkCorp in connection with its tender offer that would allow it to reach a 90% ownership threshold needed to effectuate a short-form merger. The Order was granted by Judge Fifer in the action styled Wetzel v. Karol, Case No. CC-06-18562-B, a derivative and class action pending in Dallas County Court which alleges breach of fiduciary duty in connection with ElkCorp�s proposed sale to The Carlyle Group. The Order also requires ElkCorp to produce documents relevant to the sales process and to make available certain defendants and third parties for deposition prior to the hearing. Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.