"We make a living by what we get, we make a life by what we give." Winston Churchill

Letter from the President

Mac Badgett, Senior Vice President, Construction Materials, East presented the annual State of the Company address to 94 people at VEDA's first evening event. The packed house included 10 guests from other divisions and 24 retirees, including ex CEO, Herb Sklenar and the son of one of Vulcan's founding fathers, Bill Ireland. Interjecting dry humor with hard facts, Mr. Badgett delivered a compelling summary of Vulcan's financial standing in an increasingly competitive market, as well as some challenging hurdles facing the company. In the spirit of ongoing recognition of Vulcan’s

50th anniversary as a publicly traded company, he also discussed Vulcan's unprecedented growth and financial stability over the past half century. (Cont. Page 3)

MEMBER SPOTLIGHT

After 39 years with Vulcan Materials, Vice President of Risk Management, Bennie Bumpers will retire next spring. Mr. Bumpers joined VEDA his first year at Vulcan when it was still known as the Management Club.

Bennie serves on the Shelby County Personnel board and has been active in his Alma Mater, Samford University’s Alumni association (class of '63), including serving two years as President. He also enjoys bush hogging and maintaining a farm he owns in his hometown, Jackson, Alabama. In addition to farming, Bennie plans to spend his retirement years enjoying numerous other interests including, basketball, golf, tennis, traveling, and spending time with his first grandchild, Nathanial.

September 2006

News  &  Views  State of the Company

Dear Fellow VEDA Members,

The 2006-2007 VEDA season kicked off with a successful membership breakfast scramble—139 members attended and 12 new members joined during the drive period. Thanks to the effort of officers and committee members, the prizes awarded exceeded expectations. I hope all of the winners enjoy them in the spirit they were intended.

Events planned for this year will provide unique opportunities for members. Scheduled speakers include a Heisman trophy winner, the president of one of our largest customers, and several Vulcan employees. The guest night at Barber’s Motor Sports museum and the Spring Fling at the Georgia Aquarium should be educational.

Changes have been made to community relations, which is an area of intense focus this year. Members have assisted with Movie Nights at Children’s Hospital. Opportunities to help with Habitat for Humanity, Ruffner Mountain, and the Juvenile Diabetes fundraiser are available. If you have suggestions please contact our VP of Activities, Michelle Meacham. I sincerely hope each member will find an event that will motivate them to get involved.

This year's group of officers and committee members has worked hard to provide educational and developmental opportunities for all members. However, because of the rising cost of hosting events, VEDA has seen a financial strain. To ensure members continue to receive quality programs, we have considered several options, one of which is asking

members to consider a $2.00 increase per month for membership dues. With your contribution and the matching company funds, VEDA will be able to continue providing fresh and rewarding programs. Your feedback on this proposal will be requested in coming weeks. If members approve, we would expect to put this increase in place by January 2007.

Thank you for allowing me to serve as President during an exciting and challenging time in our organization. Feel free to contact me or the appropriate officer with any recommendations or ideas for improving VEDA.              

                                                       Robby  Stanley

News  &  Views                                                                                                                                                                                                                                                                                                                                    ~  2  ~    

VEDA announced new officers for the upcoming year at the annual appreciation luncheon in June. The VEDA Org Chart is available on Vnet.

Robby Stanley will take over the President’s role from Becky Landry, who will continue as Chairperson for the Board of Directors. Congrats to Becky for outstanding commitment to VEDA and winning the Leadership award. Robby served as Vice President-Development

VEDA Introduces New Officers

The 2006-2007 VEDA events schedule has a wide variety of meetings that focus on entertaining, enlightening, and educating members. The final lunch and dinner schedules are available on Vnet. On October 10th, our evening dinner will host political analyst, Sid McAnally, and on the 24th, Dr. Paul Blanchard will enlighten us on the Vulcan Materials Center for Environmental Stewardship

Event Highlights, 2006-2007

In keeping with Vulcan’s long-standing tradition of philanthropy and charity, VEDA maintains a strong presence in the community by offering worthy volunteers. This year, VEDA will again make a difference in Birmingham. New this year is Movie Nights at Children’s Hospital. Throughout September, members can

VEDA Lends A Helping Hand

last year and won the Outstanding Service award for his tireless efforts. Melondy Snider will lead the development committee after serving as VEDA Secretary last year.

Michelle Meacham has agreed to head up the Activities committee and is already busy handling the legwork for some great events. Thanks to Michelle for her work on the Facilities Committee last year. Bethany Herrington is the new secretary. She co-chaired the

yearbook committee last year along with Becky Chilcoat. Longtime VEDA member and volunteer, Steve Gedgoudas returns to his Parliamentarian chair, and Darlene Williams will resume her duties as Historian.

Stacy Whittington will provide her financial expertise as Treasurer. In between winning door prizes, Stacy served with distinction last year on the Member Relations Committee and was voted Member of the Year for her efforts.

Please take a moment to thank your VEDA officers for their time and effort.

and Education located at Samford University at the first Professional Development Luncheon. In November, you can get a first-hand perspective from one of Vulcan's customers when Craig Fleming, President of Dunn Construction visits us for lunch on the 14th. On December 14th, Frank Phillips will be teaching us about current and future trends in digital video and photography. Fitness and nutrition expert,

Forest Walden, who was the featured speaker at the Health Fair, last year, returns for the January 11th luncheon, and on the 23rd a special guest night is planned at Barber Motor Sports Museum. In addition to hosting a world-class racecourse, the Barber Museum is home to the largest collection of vintage motorcycles in the world. Hiesman trophy winner, Pat Sullivan, will speak for the evening event on February 23d. (Cont. Next Page)

help treat children and their families to a night of movies and popcorn. The Juvenile Diabetes Research Foundation's Walk to Cure Diabetes happens on October 28th. Members are asked to try and raise $100 to meet this year's goal of $90 million. Habitat for humanity was founded in 1976 and has since built over 150,000 homes. VEDA is

proud to provide willing people to support this humanitarian tradition. Bring your tools in November and April and help needy families. Ruffner Mountain Nature Preserve covers 1,011-acres of unspoiled wilderness and has 11 miles of hiking trails. Vulcan supports Ruffner every year with donations and volunteers. (Cont. Next Page)

Beluga Whale at the Georgia

Aquarium, Destination for this

Year's Spring Fling

VEDA Officers Host 2006

Breakfast Scramble

Abandoned Crusher

at Ruffner Mountain

Nature Preserve

News  &  Views                                                                                                                                                                                                                                                                                                                                    ~  3  ~    

Event Highlights (Cont.) Sullivan is now offensive coordinator for the UAB Blazer football team. You don't want to miss the Calera Quarry tour In March, hosted by Paul Ryan and Ken Caldwell. Last year's trip to the Helena Quarry was a huge success. On April 24th, Alabama Supreme Court Chief Justice, Drayton Neighbors, will speak at the evening leadership dinner. Tom Nelson, manager of economic analysis for Vulcan, will provide construction industry updates for the May luncheon. Vulcan Senior Vice President, General Counsel and Secretary, Bill Denson, will be the speaker for the season-ending awards dinner on June 19th. This Year's Spring Fling is a road trip to the Georgia Aquarium, which is the largest aquarium in the world and is home to more than 100,000 animals representing 500 species from around the globe. Truly a world class exhibit, the aquarium has hosted over 3 million visitors in less than a year. Helping Hand (Cont.) This year, you can help with the Eco-Art competition in December, or the Environmental Education event in March, which includes Eco Awareness, Botany, and Fossil Finds. The Toys-for-Tots drive starts in December, as well as the Christmas Card campaign for families of Armed Services members serving overseas. You can help out the soldiers again in February by putting together care packages for them. This year's drive is requesting media and periodical items, like books, newspapers, magazines, CDS, movies etc. Look for more details on VEDA Community Affairs events soon.

"It is when you give of yourself that you truly give." -- Kahil Gibran

State of The Company (Cont.) Mr. Badgett praised Vulcan's sales force for maintaining strong, double-digit product increases, sometimes twice a year. First quarter stock prices for 06 were up but weather conditions and a general decline in home building, contributed to slight decreases in the second quarter. Even though these trends created decreases in some areas, Georgia and South Carolina markets grew 14 and 15 percent respectively. In spite of consistently rising energy, materials, and transportation costs, combined with aggressive competition, Vulcan has maintained the top position of aggregate producers in the U.S. with a current value of 7.5 billion dollars. Mr. Badgett pointed out obstacles facing the company such as hiring and retaining a qualified work force when many workers are taking valuable “institutional knowledge” into retirement, reauthorization of the nation’s highway bill in an economy that has seen 50-70 percent increases in materials, regulatory issues and silicosis litigation, increased difficulty with zoning and permits, controlling fines and spec charges, and transportation costs. Although he is concerned about these issues, Mac Badgett envisions continued growth for Vulcan over the next 10-25 years. By targeting huge market potential in areas like Florida and California, investing in larger facilities, growing the fleet of Panamax class, deep-water ships, leveraging and continuing our position as a leading player in the ongoing efforts to improve the nations ¼ trillion dollar infrastructure, and consistently maintaining premium prices that surpass our competitors, Vulcan will see continued growth and stability. Mr. Badgett is proud of the company’s impeccable record as a good corporate citizen. He cited the genuine love that Vulcan employees have of lending a helping hand to 170 adopted schools, all located within 2 miles of plants. He praised ongoing environmental awareness campaigns that have resulted in 35 certified wildlife habitat sites, and described how the Vulcan Foundation currently has 3.3 million dollars to spend—1.3 million on education, .218 million on the environment, and 1.8 million for health and human services and arts and culture. Mr. Badgett has served Vulcan Materials for 36 years and has been a key contributor to the company’s phenomenal growth. Originally part of the sales force, he has seen the company post record earnings and has been on the frontlines when things were shaky. He listed staggering growth percentages of 350% in the 70s, 550% in the 80s, 350%, and 160% halfway through the current decade. According to Mac Badgett, Vulcan is “not a job or a paycheck, it is a way of life.” He ensured everyone that it was in our hands to envision and live this proven philosophy that clearly separates us from other aggregate companies

~New Members~ Jane Clements

Betty Cook Angie Daw

Timothy Frizzell Marty Gates

Caleb Hopkins Ceasear Walker Jr.

Teddy Wendell Shane Buchanan Kevin Vaughan

Myron Kirby Mike Junkerman