Congoleum Corp. reports first quarter results.

MERCERVILLE, N.J.--(BUSINESS WIRE)--May 6, 1996--Congoleum Corp. (NYSE:CGM) reported Monday a net loss for the three months ended March 31, 1996 of $1.0 million, or 10 cents per share, on sales of $54.1 million.

This compares with net earnings in the first quarter of 1995 of $2.5 million, or 25 cents per share, on sales of $63.2 million.

Roger S. Marcus, chairman of the board, said, "As expected, first quarter sales were adversely affected by the general weakness in the market. In addition, purchases by Color Tile continue to decline and were significantly below first quarter 1995.

"Furthermore, a substantial proportion of our new product introductions was shipped in early April, as opposed to late March last year, delaying these revenues into the second quarter. We reduced production in the first quarter commensurate with the lower sales. This lower productivity offset the benefit of raw material cost declines."

Marcus continued, "I am optimistic about our near term results for several reasons. First, current raw material prices are now significantly below year ago levels. Secondly, we have recently been successful in increasing our position in the mass merchandiser segment.

"Third, starting in April there has been an apparent increase in retail sales activity which hopefully will continue. Finally, the second quarter will include the further benefit of the sales of our new product introductions which occurred in April. Taken together, these factors should result in improved performance for the balance of the year."

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 is a 44% owned subsidiary of American Biltrite Inc. (AMEX:ABL). -0-

                         Congoleum Corp.
                      Results of Operations

             (In thousands, except per share amounts)

                                                  (Unaudited)
                                          For the Three Months Ended
                                                   March 31,
                                               1996        1995
                                               ----        ----

Net sales                                    $54,118     $63,221

Cost of sales                                 39,770      42,928

Selling, general & administrative expenses    14,673      14,862
                                              ------      ------

Income (loss) from operations                   (325)      5,431

Interest expense, net                         (1,705)     (1,668)

Other income, net                                305         499
                                              ------      ------
Income (loss) before income taxes             (1,725)      4,262

Provision (benefit) for income taxes            (681)      1,743
                                             -------     -------

Net income (loss)                            $(1,044)    $ 2,519
                                             =======     =======

Primary earnings (loss) per common share       $(.10)       $.25
                                               =====        ====

Weighted average number of common and
 equivalent shares outstanding                10,000      10,044
                                             =======     =======

CONTACT: Congoleum Corp., Mercerville

Howard N. Feist, Sr. VP/Finance, 609/584-3586

or

Dewe Rogerson Inc., New York 

Debra Wasser or Daniel Gray, 212/688-6840