Armstrong Receives $180M Tax Refund

Lancaster, PA, October 8, 2007--Armstrong World Industries said it has received the majority of approximately $180 million in refunds for federal income taxes paid over the last 10 years.

The refunds result from the carry back of a portion of tax net operating losses created by funding of the Asbestos Trust under AWI's Plan of Reorganization in October 2006.

These refunds are in addition to approximately $50 million of 2006 taxes refunded earlier in this year. Approximately $830 million of tax losses remain available to carry forward from December 31, 2006.

AWI is evaluating how the cash proceeds will be used.