Congoleum Corporation Plan of Reorganization Confirmed

MERCERVILLE, NJ, Jun 08 (MARKET WIRE) --
Congoleum Corporation (PINKSHEETS: CGMCQ) today reported that the
District Court of New Jersey has entered an order confirming Congoleum's
Fourth Amended Plan of Reorganization. With the District Court's
confirmation order, Congoleum will now proceed with the steps necessary
to implement the plan.

Roger S. Marcus, Chairman of the Board, commented, "I am absolutely
elated to see Congoleum's plan confirmed at last. It has been a long,
difficult journey out of the complicated asbestos and insurance
litigation we faced nearly nine years ago. I could not be happier about
putting this chapter of our history behind us."

"Through their dedication and hard work, the employees of Congoleum have
seen this company through not only this bankruptcy but also the worst
economic downturn in a generation. This confirmation order rewards their
efforts in putting our asbestos problems behind us, reducing our other
debt, and giving the company a fresh start toward prosperity in the
future."

Mr. Marcus concluded, "Consummation of our reorganization requires
various transactions such as closing on our new financing arrangements.
While we have been working on these steps, we could not complete them
until the confirmation order was entered. We expect to complete these
remaining steps and emerge from bankruptcy shortly."

The above news release contains certain forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act of
1995, that involve risks, uncertainties and assumptions. These statements
can be identified by the use of the words such as "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "project" and other
words of similar meaning. In particular, these include statements
relating to intentions, beliefs or current expectations concerning, among
other things, future performance, results of operations, the outcome of
contingencies such as bankruptcy and other legal proceedings, and
financial conditions. These statements do not relate strictly to
historical or current facts. These forward-looking statements are based
on Congoleum's expectations, as of the date of this release, of future
events, and Congoleum undertakes no obligation to update any of these
forward-looking statements.

Although Congoleum believes that these expectations are based on
reasonable assumptions, within the bounds of its knowledge of its
business and operations, there can be no assurance that actual results
will not differ materially from its expectations. Readers are cautioned
not to place undue reliance on any forward-looking statements. Any or all
of these statements may turn out to be incorrect. By their nature,
forward-looking statements involve risks and uncertainties because they
relate to events and depend on circumstances that may or may not occur in
the future. Any forward-looking statements made in this press release
speak only as of the date of such statement. It is not possible to
predict or identify all factors that could potentially cause actual
results to differ materially from expected and historical results.
Factors that could cause actual results to differ from expectations
include: (i) the costs relating to the execution and implementation of
the plan of reorganization, (ii) timely consummation of the transactions
necessary pursuant to Congoleum's plan of reorganization, (iii)
Congoleum's ability to consummate exit financing sufficient to provide it
with funding that may be needed for its operations after emerging from
the bankruptcy process, in each case, on reasonable terms, (iv) increases
in raw material and energy prices or disruption in supply, (v) increased
competitive activity from companies in the flooring industry, some of
which have greater resources and broader distribution channels than
Congoleum, (vi) increases in the costs of environmental compliance and
remediation or the exhaustion of insurance coverage for such expenses,
(vii) unfavorable developments in the national economy or in the housing
industry in general, including developments arising from the war in Iraq
and Afghanistan and from the tightening of credit availability, (viii)
shipment delays, depletion of inventory and increased production costs
resulting from unforeseen disruptions of operations at any of Congoleum's
facilities or distributors, (ix) product warranty costs, (x) changes in
distributors of Congoleum's products, and (xi) Congoleum's interests may
not be the same as its present controlling shareholder, American Biltrite
Inc. In any event, if Congoleum is not successful in consummating the
effectiveness of its plan of reorganization, such failure would have a
material adverse effect upon its business, results of operations and
financial condition. In the event that the confirmed plan becomes
effective holders of existing common shares of Congoleum will receive
nothing on account of their interests and their shares will be cancelled.
Actual results could differ significantly as a result of these and other
factors discussed in Congoleum's annual report on Form 10-K for the year
ended December 31, 2009 and subsequent filings made by Congoleum with the
Securities and Exchange Commission.

For Further Information:

Howard N. Feist
Chief Financial Officer
(609) 584-3586

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