USG Corporation Announces Underwritten Public Offering of Unsecured Senior Notes



    CHICAGO, September 25 /CNW/ - USG Corporation (NYSE:  USG) announced today
that it has agreed to sell $500,000,000 of its unsecured senior notes due 2018
in an underwritten public offering pursuant to an effective shelf registration
statement that it filed on September 24, 2007 with the Securities and Exchange
Commission. The senior notes were priced at a slight discount with a coupon of
7.750 percent to yield 7.788 percent. The offering is expected to close on
September 27, 2007, subject to customary closing conditions.

    USG intends to add the net proceeds from the sale of the senior notes to
its general funds and use those proceeds, together with cash on hand, to repay
the approximately $500,000,000 balance outstanding under the term loan
facility of its credit agreement.

    Banc of America Securities LLC and JPMorgan are acting as joint
book-running managers in the offering.

    Any offering of the senior notes shall be made only by means of a
prospectus. This press release does not constitute an offer to sell or the
solicitation of an offer to buy senior notes nor shall there be any sale of
such securities in any state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. Copies of the prospectus
supplement and accompanying prospectus relating to the offering can be
obtained from Banc of America Securities LLC at 100 West 33rd Street, 3rd
Floor, New York, New York 10001, Attention: Capital Markets (Prospectus
Fulfillment) or via phone at 646-733-4166 or JPMorgan at 270 Park Avenue, New
York, New York 10017, Attention: Investment Grade Syndicate Desk or via phone
at 212-834-4533.

    USG Corporation is a Fortune 500 manufacturer and distributor of
high-performance building systems through its United States Gypsum Company,
USG Interiors, Inc. and L&W Supply Corporation subsidiaries. Headquartered in
Chicago, USG serves the residential and non-residential construction markets,
repair and remodel construction markets, and industrial processes. USG's wall,
ceiling, flooring and roofing products provide leading-edge building solutions
for customers, while L&W Supply center locations efficiently stock and deliver
building materials nationwide.

    This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that reflect
management's current views with respect to future events, based on what we
believe are reasonable assumptions. No assurance can be given, however, that
these events will occur, including the closing of the above mentioned
offering. These statements are subject to risks and uncertainties that could
cause actual results to differ materially, including: economic conditions;
capital markets conditions; changes in laws or regulations; and the effects of
acts of terrorism or war upon domestic and international economies and
financial markets. We assume no obligation to update any forward-looking
information contained in this press release.




For further information:

For further information: USG Corporation Media Inquires: Robert
Williams, 312-436-4356 or Investor Relations: Jim Bencomo, 312-436-4125

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USG CORPORATION

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