Armstrong Announces Flooring Price Changes

Lancaster, PA., July 26, 2006 – Armstrong today announced that it will initiate an average five percent price increase on its residential and commercial resilient sheet and tile (VCT), ceramic, and laminate (limited skus) flooring products, and will initiate an energy surcharge on select Armstrong products, effective with shipments on September 1, 2006. Persistently high oil and natural gas prices combined with escalating transportation costs and increasing global demand, have resulted in unprecedented price escalation for key PVC based materials. The prices of oil-based raw materials and energy sources have reached new and sustained high levels. “In recent months we have absorbed cost increases through continuing productivity improvements and manufacturing efficiencies, and have held pricing as long as we could. We cannot offset the full cost impact of these increases, making this price increase and energy surcharge necessary,” says Paul Murfin, vice president, sales, Armstrong Floor Products. “This situation is not indigenous to the flooring industry, and hardsurface flooring continues to be a great value within the category. “We do anticipate that hard surface flooring will continue to gain market share. As a company, we will continue to focus on driving productivity and quality initiatives, and we remain dedicated to developing products that are both innovative and cost-effective.”