Congoleum Corporation reports third quarter results.

MERCERVILLE, N.J.--(BUSINESS WIRE)--Nov. 4, 1996--Congoleum Corp. (NYSE: CGM) reported Monday net income for the three months ended Sept. 30, 1996 of $4.4 million, or 44 cents per share, on sales of $71.9 million.

This compares with net earnings in the third quarter of 1995 of $1.7 million, or 17 cents per share, on sales of $64.8 million.

For the nine months ended Sept. 30, 1996, net income was $8.2 million, or 82 cents per share, on sales of $200.4 million. For the same period one year earlier, net income was $8.1 million, or 81 cents per share, on sales of $196.7 million.

Roger S. Marcus, chairman of the board, said, "Our sales performance in the third quarter benefited from three factors. First was sales to new customers, particularly The Home Depot. Second was growth in shipments to the manufactured housing segment. Third was an improvement in sales of residential sheet goods.

"Increased production volumes and improved manufacturing efficiencies favorably affected gross profit margins, as did moderate raw material costs."

Marcus continued, "We are encouraged by our sales growth and the success we are having with new customers. Our capital investments to improve efficiencies continued to progress during the quarter, with the completion of two significant modernization projects. With these two projects complete, we have started an even larger project, which we expect to complete in 1997."

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 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 CORPORATION
                  UNAUDITED RESULTS OF OPERATIONS
             (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


                       For the Three Months     For the Nine Months
                          Ended Sept. 30            Ended Sept. 30
                         1996       1995            1996     1995
                       --------------------     --------------------


Net sales              $71,900    $64,813       $200,398   $196,737
Cost of sales           46,931     46,596        135,552    137,061
Selling, general &
 administrative
 expenses               16,492     13,711         47,279     41,969
                      ----------  ---------     --------     -------
Income from operations   8,477      4,506         17,567     17,707
Interest expense, net   (1,547)    (1,707)        (4,940)    (5,137)
Other income, net          329        152            923      1,109
                      ----------  ---------     ---------    -------
Income before
 income taxes            7,259      2,951         13,550     13,679
Provision for
 income taxes            2,867      1,206          5,352      5,594
                      ----------  ---------     ---------    --------
Net income              $4,392     $1,745         $8,198     $8,085
Primary earnings per
 common share           $  .44     $  .17         $  .82     $  .81
                      ----------  ---------     ---------    --------
Weighted average
 number of common
 and equivalent
 shares outstanding      9,997     10,000          9,999     10,030

-0-

CONTACT: Congoleum Corp., Mercerville

Howard N. Feist, senior vice president, finance,

609/584-3586

or

Dewe Rogerson Inc.

Debra Wasser/Daniel Gray, 212/688-6840