Denial of Armstrong’s Reorganization Plan Upheld b

Lancaster, PA, January 3, 2006--Armstrong Holding announced that on December 29, 2005, the United States Court of Appeals for the Third Circuit filed its decision upholding the U.S. District Court's denial of confirmation of Armstrong World Industries' ("AWI") Plan of Reorganization ("POR"). The decisions of both courts are available at http://www.armstrongplan.com. AWI had appealed the District Court's determination that, under the facts of this case, the distribution of warrants to current Armstrong stockholders under the POR was not permissible. AWI is considering its next steps. AWI has been investigating other options to resolve this Chapter 11 case with the representatives of its creditor groups. AWI is unable to predict when it will emerge from Chapter 11, what payouts its major classes of creditors will receive, or whether Armstrong's existing shareholders will receive any recovery from the case. As previously disclosed, AWI continues to monitor proposed reform legislation in Congress addressing asbestos personal injury claims, which could substantially effect AWI's liabilities, if enacted.