EXCO Increases Capital Budget

The Board of Directors of EXCO Resources, Inc. has approved an increase of $175 million in its 2008 capital spending budget, of which $150 million is allocated to the exploitation of its Marcellus Shale position in Appalachia and $25 million is for additional Appalachian shallow drilling related to its recently acquired shallow natural gas properties. This increase brings the total 2008 capital budget to $800 million.

The $150 million earmarked for the Marcellus Shale area in Appalachia is to fund leasing of additional acreage beyond the current company Marcellus Shale holdings (which exceed 360,000 net acres), drilling of both horizontal and vertical wells, and development of infrastructure to support future growth of this major resource opportunity. The company plans to begin drilling Marcellus Shale wells in the second quarter. This revised 2008 capital spending budget of $800 million is expected to be fully funded through cash flow from operations.