Congoleum Reports Fourth Quarter Results

Mercerville, NJ, March 12, 2008--Congoleum Corporation reported a net loss of $2.4 million or $0.29 per share for the fourth quarter, more than double the $1 million or $0.12 per share in the same quarter a year ago.

Sales for the quarter were $43.8 million, down from $46.0 million in the same quarter of 2006, a decrease of 4.8 percent. Results in the fourth quarter of 2006 included a $1.3 million gain related to replacement of a major production line component required as a result of an explosion in August 2006.

Sales for the year ended December 31, 2007 were $204.3 million, compared with sales of $219.5 million in 2006. The net loss for the year was $0.7 million, or $0.08 per share, versus net income of $0.7 million, or $0.08 per share, in 2006.

Excluding special charges and credits, Congoleum's net income in 2007 would have been $1.4 million compared with net income of $0.7 million in 2006, which included the $1.3 million gain on the production line replacement.

"We experienced very weak demand in all our end markets during 2007,” said Roger S. Marcus, Chairman of the Board.

“Sales for new residential construction have dropped sharply with the entire housing industry. Production of manufactured homes also declined from 2006 to 2007 with a commensurate reduction in demand for our products. Finally, sales of flooring for remodel and replacement applications is reported to be down anywhere from 5 percent to 20 percent depending on who you ask.”