Armstrong Changes to Pension Plan

Lancaster, PA, January 13, 2006--Armstrong World Industries, Inc., today announced changes to its U.S. defined-benefit pension plan. The changes, effective March 1, 2006, are part of a broad strategy to enhance Armstrong's competitiveness, while offering its employees a competitive benefit package. The changes will affect current non-production salaried employees only. The changes include: * Benefits under the Retirement Income Plan (RIP) will continue to accrue only for employees who meet a criterion based on age and years of service. * Benefits for all other employees will be frozen effective February 28, 2006. However, all of these participants will be eligible for an enhanced company match under the company's defined contribution, or 401(k), plan. * The RIP is being modified to provide lower benefits to people who retire before age 65. Approximately 730 employees will cease accruing future benefits under the RIP and will become eligible for the enhanced company match. The 940 employees continuing in the RIP will be subject to the early retirement changes. Armstrong will record a pre-tax charge of approximately $17 million in the fourth quarter of 2005, because the changes are considered a curtailment under SFAS 88 "Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits." The changes are expected to reduce Armstrong's retirement-related expenses by approximately $13 million in 2006 and $15 million in 2007, based on pension assumptions for 2006. As of the end of 2005, Armstrong's RIP had approximately 28,500 participants, $2 billion in assets and was funded in excess of its projected benefit obligation. No funding contribution was made to the U.S. plan in 2005.


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