Estimates $800 Million in Costs over Asbestos Claims
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Published September 06, 2002

Armstrong World Industries Inc., the main operating subsidiary of 
Armstrong Holdings Inc., reports that there are 600 proofs of asbestos-
related claim, totaling about $800 million, pending against it with the 
bankruptcy court.

AWI has filed a voluntary petition for relief under Chapter 11 of the 
U.S. Bankruptcy Code in the Bankruptcy Court for the District of 
Delaware in order to use the court-supervised reorganization process to 
achieve a resolution of its asbestos liability. Also filing under 
Chapter 11 were two of Armstrong's wholly-owned subsidiaries, Nitram 
Liquidators Inc. and Desseaux Corporation of North America, Inc.

The court will conduct an initial hearing on September 26-27, 2002 to 
decide the type of scientific testing that will determine whether AWI's 
asbestos-containing resilient floor covering products give rise to 
property damage liability.

Three creditors' committees, one representing asbestos personal injury 
claimants, one representing asbestos property damage claimants, and the 
other representing other unsecured creditors, have been appointed in the
Chapter 11 case.

AWI intends to address all prepetition claims, including all asbestos- 
related claims, in a plan of reorganization in its Chapter 11 case. AWI 
has the exclusive right to file a plan of reorganization until October 
4, 2002.

COMPANY PROFILE
Armstrong Holdings Inc. (NYSE: ACK)
2500 Columbia Ave.
Lancaster, PA 17603
Phone: 717-397-0611
Fax: 888-446-8061
Website: http://www.armstrong.com

Employees                       :          16,700
Revenue                         : $ 3,135,400,000
Net Income                      : $    92,800,000
Assets                          : $ 4,034,400,000
Liabilities                     : $ 5,631,600,000
Estimated Asbestos Claims       : $   800,000,000

(For the year ended December 31, 2002)

Business Description: Armstrong World Industries Inc., the main 
operating unit of Armstrong Holdings Inc., makes interior finishing 
building materials such as floor coverings and acoustical ceiling and 
grid systems.