Congoleum to Submit Compliance Plan to Amex

Mercerville, NJ, August 27, 2007--Congoleum Corporation could be delisted from the American Stock Exchange if it does not file an adequate compliance plan with the exchange by Sept. 5.

The company said it was notified by the exchange that it was in non compliance because it did not submit its quarterly report on time. Congoleum said it did not file the report because the Securities and Exchange Commission is reviewing its accounting procedures regarding its asbestos liabilities and insurance settlements.

Roger S. Marcus, chairman of the board, said, "We discussed the SEC review process and the potential 10-Q filing delay with the Amex prior to the filing deadline and were aware a "compliance plan" would be needed. While the accounting issues raised by our asbestos situation are complex, we are responding to the SEC's inquiries and expect they will complete their review within a reasonable period of time. Once their review is completed, we will complete and file our 10-Q accordingly."

Congoleum filed for Chapter 11 bankruptcy in 2003 to protect itself from asbestos claims.