Press Release

MINNEAPOLIS, MN (July 31, 2000) – Apogee Enterprises, Inc. (Nasdaq: APOG) today announced that formation of PPG Auto Glass L.L.C. is expected to have a neutral impact on its FY2001 earnings and a positive impact on its FY2002 earnings. The joint venture combining the U.S. automotive replacement glass distribution businesses of PPG Industries of Pittsburgh and Apogee began operations today. (See related news release on the closing and new management team issued earlier today.)

“The new PPG Auto Glass brings efficiencies to the wholesale auto replacement glass distribution business that should contribute to our earnings long-term,” said Russell Huffer, chairman and chief executive officer. “This venture brings together two market leaders, creating an enterprise with unmatched geographic coverage and operational expertise. We are encouraged by the spirit and progress of the joint venture during the integration phase.”

He explained that during the third quarter, Apogee will absorb its ownership portion of the new venture’s rationalization charges. “These costs should be absorbed by the ongoing operations of the venture, making the financial impact to Apogee neutral for this fiscal year,” said Huffer. “Moving ahead to FY2002, we expect the new venture to have a net positive impact for the year of 10 to 15 cents per diluted share for Apogee.” Apogee owns 34 percent of the auto replacement glass distribution venture.

The new venture does not include Apogee’s auto replacement glass manufacturing and retail installation operations.

Apogee (www.apog.com) is a world leader in technologies involving the design and development of value-added glass products, services and systems. The company is organized into two business segments; the Glass Technologies businesses are leaders primarily in architectural glass and high-end glass coatings for electronics, while the Glass Services businesses are leaders in replacement auto glass and building glass services. Apogee’s annual sales are nearly $1 billion.

CAUTIONARY STATEMENT

The discussion above contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current expectations or beliefs. There can be no assurances that PPG Auto Glass, Apogee’s automotive replacement glass distribution joint venture with PPG Industries, will achieve favorable short-term or long-term operating results. In addition, in recent years there has been excess capacity at the distribution level of the automotive replacement glass industry and margins have narrowed. There is no assurance PPG Auto Glass will realize/achieve any anticipated efficiencies or be able to improve or maintain margins. Also there can be no assurances given that the reorganization and realignment of Auto Glass’ businesses will lead to successful operating results for those companies now or in the future. The Company cautions readers that actual future results could differ materially from those described in the forward-looking statements depending upon the outcome of certain factors, including the risks and uncertainties identified in Exhibit 99 to the Company’s Report on Form 10-K for the fiscal year ended February 26, 2000.

Contact:
Mary Ann Jackson
952-830-0674
mjackson@apog.com