Armstrong Comments on Employee Strike in The Nethe

Lancaster, PA, October 1--Armstrong Holdings, Inc. indicated that certain of its employees at its plant in Hoogezand, The Netherlands, have not returned to work following a nationwide planned 2-day work stoppage last week. In January 2004, Armstrong announced its intention to cease production at the facility in early 2005, subject to positive advice from the Works Council, in order to eliminate excess capacity serving the European markets. The plant supplies less than 10% of Armstrong's unit volume ceiling products sales to the European and Asian markets. At this time, Armstrong is unsure of the timing of a resolution and the actual impact of this event on operations, which could have a material impact on financial results. Armstrong continues to operate the facility at minimal staffing levels and is shipping products to meet customer requirements. Armstrong is evaluating alternative sourcing to mitigate the impact of a continuing work stoppage while discussions with representative unions proceed.