Walter Industries Subsidiary, Jim Walter Resources, Announces Higher Priced Coal Contracts

- Higher Natural Gas Prices also Contributing to Stronger Revenue -



Apr 16, 2001, 01:00 ET from Walter Industries, Inc.

    TAMPA, Fla., April 16 /PRNewswire/ -- Walter Industries, Inc. (NYSE:   WLT)
 announced today that its subsidiary, Jim Walter Resources ("JWR"), has
 negotiated a number of new and existing coal contracts with price increases up
 to 35% over last year's business.  JWR is Alabama's largest coal producer,
 shipping metallurgical and steam coal worldwide.  "JWR is well positioned to
 benefit from these higher market prices as new contracts come online between
 May and July 2001," said George Richmond, JWR's President and Chief Operating
 Officer.
     JWR has annual production capacity of over six million tons of coal from
 Alabama's Blue Creek Seam.  "There is an extremely strong demand for our high-
 quality coal in both the domestic and export markets.  Globally, coal is in
 short supply due to an unusually cold winter and soaring natural gas prices.
 Years of scaled-back production combined with increased demand and falling
 prices have also led to low coal inventories," added Richmond.
     JWR also operates Black Warrior Methane Corporation, a joint venture which
 produces nearly a billion cubic feet of natural gas per month.  Tight supplies
 and higher usage of gas have contributed to significant price increases
 compared to last year.  JWR has already locked in half of its calendar year
 2001 natural gas production at selling prices 60% greater than 2000's price.
 JWR has also accelerated plans to drill additional gas wells to take advantage
 of this pricing environment.
     Jim Walter Resources, Inc., which employs 1,397 in Brookwood, Alabama,
 operates three underground mines and an extensive natural gas extraction
 program.  JWR is a wholly owned subsidiary of Walter Industries, Inc., a
 diversified company with annual revenues of $2.0 billion.  The company is a
 leader in homebuilding and home financing; water transmission products; energy
 services; and specialty aluminum products.  Based in Tampa, Florida, Walter
 Industries employs approximately 7,000.
     For additional news on the company, or investor information, please
 contact Walter Industries Senior Vice President and Treasurer, Joseph Troy at
 (813) 871-4404 or visit the corporate Web site at www.walterind.com.
 
     Except for historical information contained herein, the statements in this
 release are forward-looking and made pursuant to the safe harbor provisions of
 the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements involve known and unknown risks and uncertainties which may cause
 the company's actual results in future periods to differ materially from
 forecasted results.  Those risks include, among others, changes in customers'
 demand for the company's products, changes in raw material and equipment costs
 and availability, changes in customer orders, pricing actions by the company's
 competitors, and general changes in economic conditions.  Those and other
 risks are more fully described in the company's filings with the Securities
 and Exchange Commission.
 
 

SOURCE Walter Industries, Inc.
    TAMPA, Fla., April 16 /PRNewswire/ -- Walter Industries, Inc. (NYSE:   WLT)
 announced today that its subsidiary, Jim Walter Resources ("JWR"), has
 negotiated a number of new and existing coal contracts with price increases up
 to 35% over last year's business.  JWR is Alabama's largest coal producer,
 shipping metallurgical and steam coal worldwide.  "JWR is well positioned to
 benefit from these higher market prices as new contracts come online between
 May and July 2001," said George Richmond, JWR's President and Chief Operating
 Officer.
     JWR has annual production capacity of over six million tons of coal from
 Alabama's Blue Creek Seam.  "There is an extremely strong demand for our high-
 quality coal in both the domestic and export markets.  Globally, coal is in
 short supply due to an unusually cold winter and soaring natural gas prices.
 Years of scaled-back production combined with increased demand and falling
 prices have also led to low coal inventories," added Richmond.
     JWR also operates Black Warrior Methane Corporation, a joint venture which
 produces nearly a billion cubic feet of natural gas per month.  Tight supplies
 and higher usage of gas have contributed to significant price increases
 compared to last year.  JWR has already locked in half of its calendar year
 2001 natural gas production at selling prices 60% greater than 2000's price.
 JWR has also accelerated plans to drill additional gas wells to take advantage
 of this pricing environment.
     Jim Walter Resources, Inc., which employs 1,397 in Brookwood, Alabama,
 operates three underground mines and an extensive natural gas extraction
 program.  JWR is a wholly owned subsidiary of Walter Industries, Inc., a
 diversified company with annual revenues of $2.0 billion.  The company is a
 leader in homebuilding and home financing; water transmission products; energy
 services; and specialty aluminum products.  Based in Tampa, Florida, Walter
 Industries employs approximately 7,000.
     For additional news on the company, or investor information, please
 contact Walter Industries Senior Vice President and Treasurer, Joseph Troy at
 (813) 871-4404 or visit the corporate Web site at www.walterind.com.
 
     Except for historical information contained herein, the statements in this
 release are forward-looking and made pursuant to the safe harbor provisions of
 the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements involve known and unknown risks and uncertainties which may cause
 the company's actual results in future periods to differ materially from
 forecasted results.  Those risks include, among others, changes in customers'
 demand for the company's products, changes in raw material and equipment costs
 and availability, changes in customer orders, pricing actions by the company's
 competitors, and general changes in economic conditions.  Those and other
 risks are more fully described in the company's filings with the Securities
 and Exchange Commission.
 
 SOURCE  Walter Industries, Inc.