Foundation Coal Holdings, Inc. Prices Initial Public Offering of Common Stock

Linthicum Heights, MD, December 8, 2004 — Foundation Coal Holdings, Inc. announced today that it has priced its initial public offering of 23,610,000 shares of common stock at $22.00 per share. The common stock will begin trading tomorrow on the New York Stock Exchange under the symbol “FCL”.

Morgan Stanley & Co. Incorporated and Citigroup Global Markets Inc. are serving as joint book-running managers of the offering. UBS Securities LLC, Bear, Stearns & Co. Inc., Credit Suisse First Boston LLC, Lehman Brothers Inc., ABN AMRO Rothschild LLC and Natexis Bleichroeder Inc. are co-managers of the offering. Foundation Coal Holdings, Inc. has granted the underwriters an option to purchase up to an additional 3,541,500 shares at the public offering price.

The public offering is being made by means of a prospectus, copies of which may be obtained from Morgan Stanley & Co. Incorporated, Prospectus Department,1585 Broadway, New York, NY 10036 (Tel. 212-761-4000) or Citigroup Global Markets Inc., Brooklyn Army Terminal, 8th Floor, 140 58th Street, Brooklyn, New York 11220 (Tel: 718-765-6732).

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these 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.

Foundation Coal Holdings, Inc. is the fourth largest coal producer in the United States, with operations in the four major coal producing regions in the United States: the Powder River Basin, Northern Appalachia, Central Appalachia and the Illinois Basin. Its primary business is to produce, process and sell steam coal, which it sells to producers of electric power, the majority of whom are large U.S.-based utilities with an investment grade credit rating. Foundation Coal Holdings, Inc. also produces and processes metallurgical coal for use in the manufacture of steel.

Media Contact:
Alan Katz
Cubitt Jacobs & Prosek for First Reserve Corp.
212-279-3115 ext. 211
alan@cjpcom.com