Armstrong Negotiating Sale of European Carpet, Spo

Lancaster, PA, January 11, 2007--Armstrong World Industries and NPM Capital N.V. are negotiating on the possible sale of Tapijtfabriek H. Desseaux N.V. and its subsidiaries, the principal operating companies in Armstrong's European Textile and Sports Flooring business segment, to NPM Capital N.V. The negotiations have reached the stage where it is expected that the parties will enter into an agreement. Tapijtfabriek H. Desseaux N.V. and its subsidiaries manufacture and market carpet tiles and broadloom carpet for commercial and residential use in Europe under brand names including Desso and Bergoss, and artificial turf for sports applications in Europe and the United States under the brand names of Desso DLW Sports Systems and GrassMaster. The Desseaux business recorded sales of approximately euro 200 million (approximately U.S. $262 million) in 2005. Desseaux has approximately 1,000 employees and manufacturing plants in Waasmunster, Belgium; Dendermonde, Belgium; and Waalwijk, Netherlands, where it also has its headquarters. "The sale of the majority of Armstrong's Textile and Sports Flooring business in Europe would allow us to focus on our core European resilient flooring business," said Michael D. Lockhart, Armstrong chairman and CEO. "Tapijtfabriek H. Desseaux N.V. is a company with a lot of know-how and great products," said Stef Kranendijk, prospective CEO of Desseaux. "It has the potential to further strengthen its European markets, build on its excellent reputation and well-known brand names, and expand its leading position in the textile and sports flooring segments." Armstrong acquired Tapijtfabriek H. Desseaux N.V. in 1998 as part of the purchase of Deutsche Linoleum Werke A.G. (DLW A.G.), a manufacturer and marketer of resilient flooring products headquartered in Bietigheim-Bissingen, Germany. Armstrong plans to retain ownership of certain Desseaux businesses including automotive carpeting and linoleum-based indoor sports flooring. Armstrong's continuing flooring manufacturing operations in Europe include linoleum production in Delmenhorst, Germany; resilient vinyl flooring in Teesside, England and Holmsund, Sweden; and resilient vinyl flooring and automotive carpeting in Bietigheim-Bissingen, Germany.