Armstrong Decides To Continue in Current Structure

Lancaster, PA, February 29, 2008--Armstrong World Industries Inc. said it will remain a public company and continue to operate under its current structure.

The company said it made the decision after completing a strategic review of its alternatives, which including selling parts or all of the company.

Armstrong announced early last year that it was looking at possible alternatives.

"Armstrong's board of directors thoroughly explored a comprehensive range of alternatives, weighing the interests of our shareholders, customers and employees," said Armstrong Chairman and CEO Michael D. Lockhart.

"We believe that Armstrong can continue to create shareholder value by outperforming our markets with innovative products and services that deliver value and performance."

Armstrong also announced that the Armstrong World Industries Asbestos Personal Injury Trust said that it "supports the Board's decision to conclude the strategic review and pay a special dividend."

The also said that it "currently expects to have sufficient liquidity to pay claims the foreseeable future and has no present plans to dispose of Company common stock."

Armstrong also reported fourth quarter 2007 net sales of $852.4 million, up 4 percent, from $817.3 million in the same period for 2006.

The sales increase includes a $29 million, or 3 percent, benefit from foreign exchange rates.

Reported operating income from continuing operations grew to $51.1 million from $16.5 million in the fourth quarter of 2006. Adjusted operating income from continuing operations of $48.1 million increased 2 percent compared to $47.3 million in the prior year quarter on the same basis.