Congoleum Files Revised Reorganization Plan

New York, NY, Oct. 29, 2009--Congoleum Corporation has filed a revised plan of reorganization in its chapter 11 case with the U.S. District Court.

The court has scheduled a hearing for Nov. 19 to consider the adequacy of the Disclosure Statement for the Second Amended Joint Plan.

If the court confirms the plan and it becomes effective, Congoleum would exit its chapter 11 case free of liability for existing and future asbestos claims.

Under the proposed terms, a trust would be created that would assume the liability for Congoleum's current and future asbestos claims.

The trust would receive the proceeds of various settlements Congoleum has reached with a number of insurance carriers and would be assigned Congoleum's rights under its remaining insurance policies covering asbestos product liability.  The trust also would receive 50.1% of the newly issued common stock of reorganized Congoleum.

Existing shares of Class A and Class B common stock of Congoleum would be cancelled and holders of those shares, including American Biltrite, would not receive anything on account of their cancelled shares.

Holders of Congoleum's $100 million in 8.625% Senior Notes due in August 2008 would receive on a pro rata basis $33 million in new 9% senior secured notes  maturing Dec. 31, 2017.