Mercerville, NJ, February 5, 2007--Congoleum Corp. reported today that the judge overseeing its reorganization has issued a ruling on motions filed by insurers seeking to prevent confirmation of its most recent reorganization plan. In her opinion, the judge found that certain aspects of Congoleum's plan must be modified to comply with the requirements of the U.S. Bankruptcy Code. Roger S. Marcus, Chairman of the Board, commented, "Although I was disappointed by the ruling, we now have clear direction from the court on what aspects of our plan need to be changed. With this guidance I believe we can craft a plan that should satisfy the court. It is better that these issues were surfaced now, before we incurred the time and expense of soliciting another plan, than if they had arisen at the confirmation hearing. Our goal is to have a plan confirmed, and knowing exactly what the court expects moves us a step closer to achieving that." Mr. Marcus continued, "As far as timing and cost, we are hopeful that all parties involved in negotiating our next plan will share our sense of urgency as they did at the mediation last summer. I think it is possible we could have a plan ready for confirmation by late in the third quarter of 2007. While this delay will add somewhat to the cost, we believe the $22 million cash on hand at the end of 2006, together with the cash the business continues to generate, should enable us to meet our obligations for a reasonable level of fees and expenses through the end of the year." On December 31, 2003, Congoleum Corporation filed a voluntary petition with the United States Bankruptcy Court for the District of New Jersey (Case No. 03-51524) seeking relief under Chapter 11 of the United States Bankruptcy Code as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago.
