Armstrong Emerges From Chapter 11 - Continued

-- Continued AWI has a new, nine member Board of Directors. Mr. Lockhart will continue to serve as Chairman and CEO of AWI, and no senior management changes are expected. In addition to Mr. Lockhart, Judith R. Haberkorn and John J. Roberts, both of whom had served on the Board of AHI, will serve on the new AWI Board. The six additional members of the new AWI Board are: - James J. Gaffney - Chairman of Imperial Sugar Company; former Chairman and CEO of General Aquatics, Inc; - Robert C. Garland - CEO of AFR Holdco, Inc., American Fiber Resources and Great Lakes Pulp Company; - Scott D. Miller - President and CEO of the Six Sigma Academy; former Vice Chairman and President of Hyatt Hotels Corporation; - Russell F. Peppet - Special Advisor to Park Avenue Equity Partners, a private equity firm; formerly Vice Chairman of Peat, Marwick, Mitchell & Co., now KPMG; - Arthur J. Pergament - Founder and CEO of Pergament Advisors, LLC, a New York based asset manager serving the institutional and high net worth communities; and - Hon. Alexander M. Sanders, Jr. - former President of Charleston College and Chief Judge on the South Carolina Court of Appeals. AWI will adopt fresh-start financial reporting as of its emergence from Chapter 11. Fresh start accounting requires the Company to mark-to-market its entire balance sheet, similar to purchase accounting. This includes revaluing assets and liabilities to current estimated fair value, setting shareholders' equity at an amount to be determined by a third party valuation, and recording any portion of the equity value that cannot be attributed to specific tangible or intangible assets as goodwill. The adoption of fresh start accounting will have a material effect on AWI's financial statements, primarily due to additional non-cash expenses related to higher asset values. As a result of the application of fresh start reporting as of October 2, 2006, AWI's financial statements in future periods will not be comparable with prior financial statements. AWI currently expects to report its third quarter earnings at the end of October. At that time, AWI also expects to provide an outlook for the remainder of 2006. In addition, AWI is preparing to hold meetings with investors during the month of November.