Congoleum Reaches $40 Million Settlement

Mercerville, NJ, April 23, 2010--Congoleum said it has reached an insurance litigation settlement with the Chartis Companies.

Under the terms of the agreement, the Chartis Companies have agreed to pay $40 million over a period of six years in exchange for a buyback of certain subject insurance policies. The $40 million will be paid into the trust formed by Congoleum's plan of reorganization for distribution to asbestos claimants. The settlement is subject to court approval and other conditions.

"With this latest settlement, we have now resolved all our insurance litigation and moved one step closer to completing our reorganization," said Roger S. Marcus, Chairman of the Board, in a news release.

"I look forward to the confirmation hearing on our plan that is scheduled for June and believe we can emerge from bankruptcy shortly thereafter."