Congoleum Reaches Insurance Settlement

Mercerville, NJ, Feb. 1, 2010--Congoleum Corporation said it has reached a settlement with nine insurance groups and the New Jersey insurance guaranty associations.

Under the terms of the agreements, the insurance companies and the guaranty associations will pay $100 million to settle certain policies issued to Congoleum. The settlement is subject to court approval and other conditions.

"I am absolutely thrilled to have finally resolved our disputes with the principal insurance companies that have been opposing our reorganization efforts," said Roger S. Marcus, boad chairman.

"Their opposition has been far and away the greatest obstacle in getting a plan confirmed. With the conclusion of this substantial insurance settlement and the support for the plan that we have from all creditor committees, we expect a much smoother road ahead."