Court Approves IHDG Disclosure Statement; Solicitation of Votes On Plan to Begin.

Business Editors

CLEVELAND--(BUSINESS WIRE)--Feb. 5, 2001

The Imperial Home Decor Group Inc. (IHDG) said today that it has received approval from the United States Bankruptcy Court for the District of Delaware of the disclosure statement for its proposed plan of reorganization. The court's approval of the disclosure statement allows IHDG to commence the solicitation of creditor votes for approval of its plan of reorganization, an important next step toward its emergence from chapter 11.

The disclosure statement, plan of reorganization and ballots to vote on the plan are to be mailed to creditors during the week of February 5, 2001. The deadline for casting ballots is March 9, 2001. The court has established March 16, 2001 as the date for the plan of reorganization confirmation hearing. If approval of the plan is obtained at that time, the company anticipates that it could emerge from chapter 11 by March 31, 2001.

The disclosure statement contains information used by creditors to evaluate the company's plan of reorganization.

"This is an important milestone toward our emergence from chapter 11," said Douglas R. Kelly, president and chief executive officer of IHDG. "Many people, including our unsecured creditors' committee and our lenders, have worked hard to get to this point. Above all, the people of IHDG have made enormous contributions to get us to this point."

Kelly noted that while in chapter 11, the company has:

-- Consolidated its worldwide printing, finishing and distribution capacities
to improve production and service;

-- Realigned operations and streamlined processes to achieve efficiencies and
cost reductions;

-- Introduced over 70 new wallcovering collections;

-- Reduced inventory levels;

-- Introduced new products including Instant Stencils, Tile Stickers and
Bedding;

-- Aligned the company's commercial business unit with LSI Wallcovering in
order to take better advantage of production and marketing opportunities;

-- Streamlined its sales and marketing organizations;

-- Revised its North American brand strategies, focusing on one Imperial brand
to be marketed across various retail channels;

-- Initiated technological innovations that will allow it to better serve its
customers and attract new consumers, including the Interactive Voice Response
order system and major internet initiatives to be launched in April 2001.

IHDG filed its chapter 11 case on January 5, 2000 in the United States Bankruptcy Court for the District of Delaware.

Imperial Home Decor Group is the world's largest designer, manufacturer and distributor of residential wallcovering products. IHDG also markets commercial wallcoverings and is a premiere supplier of vinyl for pool liners through the Vernon Plastics operating division. Headquartered in Cleveland, Ohio, IHDG supplies home centers, national chains, independent dealers, mass merchants, design showrooms and specialty shops. Product lines include the Imperial, Katzenbach & Warren, Albert Van Luit, Sterling Prints, Imperial Fine Interiors, Sunworthy and Colorfields brand names. The Company was created in 1998 through the merger of Imperial Wallcoverings and Borden Decorative Products. In 2000, Imperial Home Decor Group had net sales in excess of $363 million.

Note: This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additional information concerning important factors that could cause actual results to differ from the forward-looking information contained in this release is included in the company's filings with the Securities and Exchange Commission.