Court Reverses Congoleum Dismissal

Mercerville, NJ, Aug. 24, 2009--Congoleum said it received a decision from the U.S. District Court on its appeal of two orders from the U.S. Bankruptcy Court.

Congoleum had appealed Bankruptcy Court orders finding its latest plan of reorganization unconfirmable and dismissing its Chapter 11 case.

The District Court decision reversed the dismissal order.

The District Court ruled that a settlement with certain asbestos claimants was reasonable and not an impediment to confirmation while another issue would require a minor modification to the plan.

"We are extremely pleased with the ruling from the District Court," said Roger S. Marcus, Chairman of the Board.

"It removes the threat of dismissal and provides all parties with the clear guidance needed to achieve a confirmable plan. This result was precisely what we had hoped for, and believe it puts us on track for confirmation of a plan."