INDIANAPOLIS (November 8, 2005) -- Irving Materials, Inc. (IMI) deposited $2 million into an escrow account on November 7 to provide funding toward any settlement that it may enter into with the State of Indiana related to the company?s price-fixing of ready-mixed concrete on state, local government and school projects between July 2000 and May 2004.

IMI also agreed to several terms, one of which ensures that the four principals who pled guilty to price-fixing will no longer be corporate officers or directors of IMI or any of its subsidiaries or have senior management responsibility over IMI?s ready-mixed concrete business or its wholly-owned subsidiary, E&B Paving. While not involved in the federal price-fixing case, E&B Paving is a major road contractor in Indiana.

In June 2005, IMI pled guilty in U.S. District Court to fixing prices on ready-mixed concrete in central Indiana. The plea agreement with federal prosecutors provides that four of the company?s top executives, Fred R. ?Pete? Irving, Price Irving, Daniel C. Butler and John Huggins pay fines and serve time in federal prison for their roles in the scheme.

IMI has agreed not to issue any dividends to these four individuals for a period of three years, and it has committed to meet the state?s demand to appoint an independent director to the board of E&B Paving.

?IMI has a new president and management team. The agreement ensures that the state and private parties aren?t doing business with companies led by individuals who?ve pled guilty to price-fixing,? said Steve Schultz, chief legal counsel to Governor Mitch Daniels. ?The federal government pursued punishment for this crime. Our role is to pursue restitution for Hoosier taxpayers. Additionally, we are mindful of keeping IMI an independent and Indiana-owned company.?

As part of the agreement, the Indiana Department of Transportation (INDOT) will release 10 construction contracts where E&B Paving is the low bidder. Awarding these contracts to E&B Paving instead of the next lowest bidder will save the state approximately $1.9 million.

The Attorney General?s office, on behalf of the State of Indiana, will be working with local municipalities and other government agencies as part of an ongoing effort to determine the amount of ready-mixed concrete delivered from IMI during the period that price fixing is supposed to have occurred.

Office of the Governor media contact: Jane Jankowski, 317/232-1622

Indiana Department of Transportation media contact: Gary Abell, 317/233-4675

Office of the Attorney General media contact: Staci Schneider, 317/232-6351