Results for the three and nine months ended September 30, 2007 include $ 2.9 million and $8.5 million respectively of interest on Congoleum's 8 5/8% Senior Notes. Under the terms of its most recent reorganization plan, Congoleum will not pay interest on the Senior Notes for the period commencing with the filing of its bankruptcy. In the fourth quarter of 2007 Congoleum reversed the post-bankruptcy interest it had previously recorded on the Senior Notes. Congoleum is no longer recording interest expense on the Senior Notes, and there was no interest expense on the Senior Notes in the three and nine-month periods ended September 30, 2008.

Roger S. Marcus, Chairman of the Board, commented, "The majority of the decrease in our sales this past quarter from the third quarter of 2007 was due to sharply lower demand from the manufactured housing and recreational vehicle industry. Sales for the balance of our business were down 6% from the third quarter of last year. While this is still a significant decline, I believe it is better than market conditions would dictate, and reflects the continued success of our Duraproduct line, which continued to post modest sales increases over comparable prior year levels despite the poor economy.

"We reduced inventories during the quarter, as did our distributors, in response to market conditions. While we have also reduced overhead spending, these lowered production levels, coupled with the continued sharp inflation in raw materials experienced during the third quarter, more than negated the effect of our own selling price increases, and gross margins were well below year earlier levels. Thanks to the cost reduction steps we have taken over the past year, our operating expenses are down $2.1 million from the third quarter of last year, which helped mitigate the decrease in gross profit.

"Market conditions in manufactured housing, new construction and remodeling activity, which were already very weak, deteriorated further during the third quarter. At the same time, raw material and energy costs spiked. While we do not expect demand to improve for the balance of this year or much of 2009, there is some good news to report. First, we have a substantial cash position, $23.8 million at the end of the most recent quarter. Second, it looks like raw material costs may have peaked for the foreseeable future, and we are seeing indications of potential reductions based on declines in global demand and oil prices. Third, we recently expanded our presence with two major retailers that we expect will provide us with incremental sales in 2009. We also received a very favorable response to the recent introduction of our new products for 2009, which we hope will help us capture more than our fair share of retail activity. Fourth, we are seeing the benefit of our cost reduction efforts, which have helped lower our breakeven point. Finally, we just received approval from the Bankruptcy Court of a litigation settlement that we believe removes what had been one of the major obstacles to confirmation of our prior reorganization plans, and are optimistic that we can finally complete the process in the first half of 2009.

"I reported last quarter that business conditions were the worst I'd ever seen, unfortunately they've gotten worse since, but we remain committed to taking whatever steps are necessary to improve cash flow and assure the business remains viable. I have the utmost confidence in the commitment and determination of our people, and appreciate how they have risen to this latest challenge."

Congoleum Corporation is a leading manufacturer of resilient flooring, serving both residential and commercial markets. Its sheet, tile and plank products are available in a wide variety of designs and colors, and are used in remodeling, manufactured housing, new construction and commercial applications. The Congoleum brand name is recognized and trusted by consumers as representing a company that has been supplying attractive and durable flooring products for over a century.

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 future cost and timing of estimated asbestos liabilities and payments, (ii) the availability of insurance coverage and reimbursement from insurance companies that underwrote the applicable insurance policies for the Company for asbestos-related claims, (iii) the costs relating to the execution and implementation of any plan of reorganization pursued by Congoleum, (iv) timely reaching agreement with other creditors, or classes of creditors, that exist or may emerge, (v) satisfaction of the conditions and obligations under Congoleum's outstanding debt instruments, (vi) the response from time to time of Congoleum's and its controlling shareholder's, American Biltrite Inc.'s, lenders, customers, suppliers and other constituencies to the ongoing process arising from Congoleum's strategy to settle its asbestos liability, (vii) Congoleum's ability to maintain debtor-in-possession financing sufficient to provide it with funding that may be needed during the pendency of its Chapter 11 case and to obtain 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, (viii) timely obtaining sufficient creditor and court approval (including the results of any relevant appeals) of any reorganization plan pursued by Congoleum, and the court overruling any objections to the plan that may be filed, (ix) compliance with the United States Bankruptcy Code, including Section 524(g), (x) costs of, developments in, and the outcome of insurance coverage litigation pending in New Jersey state court involving Congoleum and certain insurers, (xi) the possible adoption of another party's plan of reorganization which may prove to be unfeasible, (xii) increases in raw material and energy prices or disruption in supply, (xiii) increased competitive activity from companies in the flooring industry, some of which have greater resources and broader distribution channels than Congoleum, (xiv) increases in the costs of environmental compliance and remediation or the exhaustion of insurance coverage for such expenses, (xv) 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, (xvi) shipment delays, depletion of inventory and increased production costs resulting from unforeseen disruptions of operations at any of Congoleum's facilities or distributors, (xvii) product warranty costs, (xviii) changes in distributors of Congoleum's products, and (xix) Congoleum's interests may not be the same as its controlling shareholder, American Biltrite Inc. In any event, if Congoleum is not successful in obtaining sufficient creditor and court approval of a plan of reorganization, such failure would have a material adverse effect upon its business, results of operations and financial condition. 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, 2007 and subsequent filings made by Congoleum with the Securities and Exchange Commission.

                           CONGOLEUM CORPORATION
                           RESULTS OF OPERATIONS
                 (In thousands, except per share amounts)
                               (Unaudited)
                                   For the Three          For the Nine
                                    Months Ended          Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Net Sales                       $  46,085  $  53,588  $ 140,948  $ 160,444
Cost of Sales                      37,765     39,365    111,866    120,478
Selling, General &
 Administrative Expenses            7,768      9,829     26,138     29,243
Asbestos Related Charges           11,491         --     11,491         --
                                ---------  ---------  ---------  ---------
Income from Operations            (10,939)     4,394     (8,547)    10,723
Interest Income (expense),(net)         6     (2,961)     1,001     (8,765)
Other Income (expense),(net)         (377)      (213)      (791)      (247)
                                ---------  ---------  ---------  ---------
Net Income before Income Taxes    (11,310)     1,220     (8,337)     1,711
Provision for Taxes                (1,185)        20       (103)        27
                                ---------  ---------  ---------  ---------
Net Income                      $ (10,125) $   1,200  $  (8,234) $   1,684
                                =========  =========  =========  =========
Net Income Per Share, Basic     $   (1.22) $    0.15  $   (1.00) $    0.20
                                =========  =========  =========  =========
Net Income Per Share, Diluted   $   (1.22) $    0.14  $   (1.00) $    0.20
                                =========  =========  =========  =========
Weighted Average Number of
 Common Shares Outstanding -
 Basic                              8,272      8,272      8,272      8,272
                                =========  =========  =========  =========
Weighted Average Number of
 Common Shares Outstanding -
 Diluted                            8,272      8,283      8,272      8,287
                                =========  =========  =========  =========
ADDITIONAL FINANCIAL INFORMATION:
Capital Expenditures            $   1,242  $   1,190  $   2,746  $   2,263
Depreciation and Amortization   $   2,482  $   2,610  $   7,781  $   8,003
                       CONDENSED BALANCE SHEET
                (In thousands, except per share amounts)
                              (Unaudited)
                                              September 30,  December 31,
                                              -------------  -------------
                                                  2008           2007
                                              -------------  -------------
ASSETS:
  Cash and cash equivalents                   $      23,757  $      26,327
  Restricted cash                                    29,538          6,501
  Accounts & notes receivable, net                   15,971         14,162
  Inventory                                          36,730         35,182
  Other current assets                                4,490         13,138
                                              -------------  -------------
  Total current assets                              110,486         95,310
  Property, plant & equipment (net)                  57,132         61,993
  Other assets (net)                                  7,561         11,909
                                              -------------  -------------
  Total assets                                $     175,179  $     169,212
                                              =============  =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
  Accounts payable, accrued expenses &
   deferred income taxes                      $      82,688  $      70,389
  Revolving credit loan - secured debt               12,637         10,551
  Liabilities subject to compromise - current         4,997          4,997
                                              -------------  -------------
  Total current liabilities                         100,322         85,937
  Liabilities subject to compromise                 129,533        129,731
  Long term debt                                         --             --
  Other liabilities                                      --             --
                                              -------------  -------------
  Total liabilities                                 229,855        215,668
  Stockholders' equity (deficit)                    (54,676)       (46,456)
                                              -------------  -------------
  Total liabilities & stockholders' equity    $     175,179  $     169,212
                                              =============  =============
ADDITIONAL FINANCIAL INFORMATION:
  Working Capital                             $      10,164  $       9,373
  Current Ratio                                         1.1            1.1

SOURCE: Congoleum Corporation

Roger S. Marcus, Chairman of the Board, commented "Business conditions were extremely difficult in the third quarter, with raw material and energy costs continuing to escalate despite weak demand in housing and other key end markets we serve. Operating results at Congoleum and Tape suffered accordingly. The general retail climate was also poor, as reflected in K&M's lower sales in the third quarter versus year earlier levels. Fortunately, K&M's cost reduction efforts enabled it to be profitable in the third quarter even with the lower revenues. Despite the challenging environment, the Canadian division increased sales and income versus the third quarter of 2007 on improved sales of industrial products."

"While we do not anticipate that market conditions will improve any time soon, raw material prices have recently declined, which may provide some relief from the elevated costs we faced in the first nine months of 2008. Our plans also call for additional expense reductions and other steps as may be needed in response to economic conditions. At the same time, we are working to position ourselves to take advantage of competitive opportunities which may arise from these conditions."

Warning regarding forward-looking statements

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 forward-looking statements are based on American Biltrite's expectations, as of the date of this release, of future events. American Biltrite undertakes no obligation to update any of these forward-looking statements. Although American Biltrite believes that its expectations are based on reasonable assumptions, within the bounds of its knowledge of its business and experience, there can be no assurance that actual results will not differ materially from expectations. Readers are cautioned not to place undue reliance on any forward-looking statements. Actual results could differ significantly as a result of various factors. For example, the above news release may imply that the current economic conditions are a cause of American Biltrite's operating results and that American Biltrite's results will improve when economic conditions and consumer sentiment improves. However, American Biltrite's results may be driven by other factors beyond economic conditions and consumer sentiment and its results may not improve when economic conditions and consumer sentiment improve. Moreover, economic conditions may not soon improve, could deteriorate further and could continue for a prolonged period. In addition, the news release indicates that American Biltrite has taken steps to try to mitigate the effect of lower sales and higher costs. Those steps may not be sufficient to offset American Biltrite's lower sales and higher costs, and American Biltrite may not be able to sustain the actions it has taken and it may need to take further steps to address the lower sales and higher costs. Any actions taken to address American Biltrite's lower sales and higher costs may not be successful or sufficient. The news release also indicates that American Biltrite is working to position itself to take advantage of opportunities which may rise from the current economic conditions. There can be no assurances that any such opportunities will arise and that, if they did arise, that American Biltrite would be able to take advantage of such opportunities. Some additional factors that could cause actual results to differ from expectations include: (i) American Biltrite's and Congoleum's ability to comply with the covenants imposed on them under their respective credit facilities and the availability of borrowings under those facilities and their ability to generate sufficient operating cash flows to fund their respective businesses and operations, (ii) the future cost and timing of payments associated with and availability of insurance coverage for environmental and non-asbestos related product and general liability claims; (iii) increases in raw material prices and availability of raw materials; (iv) increased competitive activity from competitors, some of which have greater resources and broader distribution channels; (v) unfavorable developments in various markets for American Biltrite's or its subsidiaries' products or in the national economy in general, (vi) shipment delays, depletion of inventory and increased production costs resulting from unforeseen disruptions of operations at any of American Biltrite's or its subsidiaries' facilities or distributors; (vii) the incurrence of product warranty costs; (viii) changes in customers for American Biltrite's or its subsidiaries' products; (ix) any discontinuation of American Biltrite's intercompany arrangements with Congoleum on terms substantially consistent with those currently in effect and as would have been revised as contemplated by a recent proposed plan of reorganization for Congoleum in connection with Congoleum's Chapter 11 case, which is referred to further below; and (x) the loss of any key executives.

American Biltrite and Congoleum have significant asbestos related liabilities. On December 31, 2003, Congoleum filed a voluntary petition with the United States Bankruptcy Court for the District of New Jersey (Case No. 03-51524) seeking relief under Chapter 11 of the United States Bankruptcy Code as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago. Congoleum's Chapter 11 case is pending. Some factors which may cause American Biltrite and Congoleum to not realize their plan for resolving asbestos liabilities include: (i) the future cost and timing of estimated asbestos liabilities and payments; (ii) the availability of insurance coverage and reimbursement from insurance companies that underwrote the applicable insurance policies for asbestos-related claims, including insurance coverage and reimbursement for asbestos claimants under any plan of reorganization for Congoleum in connection with Congoleum's Chapter 11 case, which certain insurers have objected to in bankruptcy court and are litigating in New Jersey state court; (iii) the costs relating to the execution and implementation of any plan of reorganization for Congoleum; (iv) timely reaching agreement with other creditors, or classes of creditors, that exist or may emerge; (v) satisfaction of the conditions and obligations under American Biltrite's and Congoleum's outstanding debt instruments, and amendment or waiver of those outstanding debt instruments, as necessary, to permit Congoleum and American Biltrite to satisfy their obligations under Congoleum's plan of reorganization; (vi) the response from time-to-time of American Biltrite's and Congoleum's lenders, customers, suppliers, holders of Congoleum's Senior Notes and other creditors and constituencies to the Chapter 11 process and related developments arising from the strategy to resolve asbestos liability; (vii) Congoleum's ability to maintain debtor-in-possession financing sufficient to provide it with funding that may be needed during the pendency of its Chapter 11 case and to obtain 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; (viii) timely obtaining sufficient creditor and court approval (including the results of any relevant appeals) of any reorganization plan and the court overruling any objections to that reorganization plan that may be filed; (ix) developments in, costs associated with and the outcome of insurance coverage litigation pending in New Jersey state court involving Congoleum and certain insurers; (x) compliance with the United States Bankruptcy Code, including section 524(g); and (xi) the impact any adopted federal legislation addressing asbestos personal injury claims may have on American Biltrite's or Congoleum's businesses, results of operations or financial conditions. In addition, in view of American Biltrite's relationships with Congoleum, American Biltrite will be affected by Congoleum's negotiations regarding, and its pursuit of, a plan of reorganization, and there can be no assurance as to what that impact, positive or negative, might be. In any event, the failure of Congoleum to obtain confirmation and consummation of a plan of reorganization would have a material adverse effect on Congoleum's business, results of operations or financial condition and could have a material adverse effect on American Biltrite's business, results of operations or financial condition. Actual results could differ significantly as a result of these and other factors discussed in American Biltrite's Annual Report on Form 10-K for the year ended December 31, 2007, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008 and its subsequent filings with the Securities and Exchange Commission.

AMERICAN BILTRITE INC.
RESULTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2008 AND 2007
($000, except share and per share amounts)
                                                                         Three Months Ended                            Nine Months Ended
                                                                         September 30,                                 September 30,
                                                                         2008                   2007                   2008                   2007
Net sales                                                                $   97,351             $   107,403            $   294,347            $   322,992
Cost of products sold                                                        75,330                 79,240                 225,600                239,493
Selling, general & administrative expenses                                   21,269                 23,625                 67,234                 71,854
Asbestos-related reorganization charge                                       11,491                 -                      11,491                 -
(Loss) income from operations                                                (10,739    )           4,538                  (9,978     )           11,645
Interest and other expense, net                                              (1,241     )           (3,572     )           (1,110     )           (10,323    )
(Benefit from) provision for income taxes                                    (1,631     )           212                    (549       )           153
Noncontrolling interest                                                      (17        )           (79        )           50                     (104       )
(Loss) income from continuing operations                                     (10,366    )           675                    (10,489    )           1,065
Discontinued operation                                                       -                      -                      1,025                  -
Net (loss) income                                                        $   (10,366    )       $   675                $   (9,464     )       $   1,065
Basic earnings per share:
(Loss) income per common share from continuing operations                $   (3.01      )       $   0.20               $   (3.05      )       $   0.31
Discontinued operation                                                       -                      -                      .30                    -
Net (loss) income per share                                              $   (3.01      )       $   0.20               $   (2.75      )       $   0.31
Diluted earnings per share:
(Loss) income per common share from continuing operations                $   (3.01      )       $   0.20               $   (3.05      )       $   0.31
Discontinued operation                                                       -                      -                      .30                    -
Net (loss) income per share                                              $   (3.01      )       $   0.20               $   (2.75      )       $   0.31
Weighted average number of common and equivalent shares outstanding
Basic                                                                        3,441,551              3,441,551              3,441,551              3,441,551
Diluted                                                                      3,441,551              3,441,796              3,441,551              3,442,149

AMERICAN BILTRITE INC.
RESULTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2008 AND 2007
BY SEGMENT
($000)
                                            Three Months Ended                        Nine Months Ended
                                            September 30,                             September 30,
                                            2008                 2007                 2008                 2007
Revenues from external customers
Flooring products                           $   46,085           $   53,588           $   140,948          $   160,444
Tape products                                   21,835               23,901               70,320               73,823
Jewelry                                         14,587               16,025               39,043               46,758
Canadian division                               14,844               13,889               44,036               41,967
Total revenues from external customers      $   97,351           $   107,403          $   294,347          $   322,992
Segment (loss) profit before taxes
Flooring products                           $   (11,310  )       $   1,220            $   (8,337   )       $   1,711
Tape products                                   (1,875   )           (304     )           (2,106   )           (967     )
Jewelry                                         320                  487                  (1,636   )           1,023
Canadian division                               380                  (564     )           936                  (182     )
Corporate income (expense)                      505                  127                  55                   (263     )
Total (loss) profit                         $   (11,980  )       $   966              $   (11,088  )       $   1,322

SOURCE: American Biltrite Inc.

American Biltrite Inc. 
Howard N. Feist, 781-237-6655 
Chief Financial Officer