Linthicum Heights, MD, July 16 – Foundation Coal Holdings, Inc. announced today that it has completed an asset exchange with various subsidiaries of Massey Energy Company. In the transaction which was designed to optimize the reserve bases of both companies, Foundation has created a contiguous reserve in the Harts Creek/Atenville area through the acquisition of approximately 19 million tons, increasing the total reserve block to more than 120 million tons of high quality steam and metallurgical grade coal. In exchange, Foundation conveyed to Massey approximately 23 million tons of coal reserves and the operating assets of the idled Laurel Creek Mining Complex in Mingo County, WV, including a coal processing plant, a permitted impoundment, permitted surface reserves, idled underground mines, and related mining equipment.

"We are pleased to announce this transaction, which improves the reserve position of both companies and provides Foundation enhanced growth potential in Central Appalachia," said James F. Roberts, Chairman and Chief Executive Officer. "Harts Creek represents one of the largest contiguous, undeveloped reserves in the region and will provide a significant growth opportunity for the company following the completion of our pending merger with Alpha Natural Resources."