Manufactured Housing Weakness Hits Congoleum

Mercerville, NJ, May 15, 2009--Congoleum Corporation reported a net loss for the quarter of $4.1 million, compared with net income of $1.7 million in the first quarter of 2008.

Net loss per share was $.50 in the first quarter of 2009 compared with net income of $.20 per share in the first quarter of 2008.

Sales for the three months ended March 31 were $30.1 million, compared with sales of $47.7 million reported in the first quarter of 2008, a decrease of 37%.

"While we had anticipated considerable sales weakness going into the first quarter, actual demand was even worse than we expected," said Roger S. Marcus, Chairman of the Board.

"Softness in the manufactured housing industry, normally a significant portion of our business, was particularly acute, with first quarter sales falling 66% below year earlier levels. We also saw significant further reductions in our distributors' inventories, which we had felt were already at minimal levels.

Marcus said the company is assuming manufactured housing market will be weak for the rest o the year.

"While market conditions remain weak, we have seen some glimmers of improvement in residential remodel demand that provide some indication the market has at least bottomed out," Marcus said.