Congoleum Corporation announces charge for Color Tile receivable

Business Wire, Jan 25, 1996

MERCERVILLE, N.J.--(BUSINESS WIRE)--Jan. 25, 1996--Congoleum Corp. (NYSE:CGM) announced today that it will take a $2.5 million pre-tax charge to 1995 earnings related to its account receivable from Color Tile Inc.

Color Tile, a Fort Worth based floor covering retailer, filed for bankruptcy under Chapter XI yesterday. With this charge, Congoleum's receivable from Color Tile will be fully reserved. Congoleum's sales to Color Tile in the last six months of 1995 had declined to approximately half the 1994 level.

Roger S. Marcus, chairman of the board, commented, "Color Tile has been a customer for over 30 years. While this charge is disappointing, we value our long term relationship and are pleased to see them taking steps to put their financial difficulties behind them. We are hopeful these changes set the stage for returning our level of business with Color Tile to that of previous years."

Congoleum Corp. is North America's second largest manufacturer of resilient vinyl flooring, serving both commercial and residential markets with products in a wide variety of designs and colors. The company's products are used primarily by the remodeling, replacement, commercial, manufactured home and new residential markets. The Congoleum brand name has been associated with the flooring industry since 1924.

Congoleum Corp. is a 44% owned subsidiary of American Biltrite Inc. (AMEX:ABL).

CONTACT: Congoleum Corporation

Howard N. Feist, 609/584-3586

or

Dewe Rogerson Inc.

Debra Wasser/ Daniel Gray, 212/688-6840