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FCL News Foundation Coal Updates Third Quarter Expectations

LINTHICUM HEIGHTS, Md.--(BUSINESS WIRE)--Foundation Coal Holdings, Inc. (NYSE:FCL) today announced that third quarter earnings will be reduced by approximately $0.17 per diluted share as a result of a non-cash charge related to the company’s secured senior debt refinancing, which occurred in July 2006.

Scheduled miners’ vacations at the company’s eastern operations and a planned longwall move at the Cumberland Mine also impacted third quarter results. The combined impact of those items reduced adjusted EBITDA by approximately $18 million to $22 million compared to the second quarter of 2006.

Strong operational performance at the company’s Wyoming and Pennsylvania affiliates partly compensated for the impact of the longwall move and miners’ vacations. However, operational challenges at its Illinois and West Virginia operations offset the gains in Wyoming and Pennsylvania.

“Foundation Coal remains focused on strategies to improve operational performance and reduce costs,” said chairman and chief executive officer, James F. Roberts. “Looking ahead, our marketing strategy has positioned us well for 2007, and to take advantage of strong long term industry market fundamentals.”

The company will hold a conference call on November 7, 2006 at 10:00 AM EST to discuss the results of the quarter.

Foundation Coal Holdings, Inc., through its affiliates, is a major U.S. coal producer with 14 coal mines and related facilities in Pennsylvania, West Virginia, Illinois, and Wyoming. Through its subsidiaries Foundation Coal employs approximately 3,000 people and produces approximately 70 million tons annually, largely for utilities generating electricity. Foundation’s corporate offices are in Linthicum Heights, MD.

Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company’s Form 10-K for the fiscal year ended December 31, 2005 filed with the Securities and Exchange Commission, copies of which are available from the Company.