Item 2.05 Costs Associated with Exit or Disposal Activities.

As a further step in the Registrant's ongoing adjustment of its operations, programs and staffing to adapt to changing market conditions, the Registrant's subsidiary, United States Gypsum Company, is temporarily closing its paper mill in Clark, New Jersey, effective August 1, 2009.

The Registrant will record charges of approximately $7.0 million in the current and future fiscal quarters related to closure of the paper mill. These charges include approximately $2.8 million for termination benefits, $3.3 million for associated costs, principally equipment lease terminations and cleanup costs, and $0.9 million for inventory write-offs. The Registrant estimates that it will incur cash expenditures of approximately $6.1 million in the current and future fiscal quarters in connection with the closure.

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