LANCASTER, PA  January 3, 2006 --  Armstrong Holdings, Inc. (OTCBB: ACKHQ) today announced that on December 29, 2005, the United States Court of Appeals for the Third Circuit filed its decision upholding the U.S. District Court’s denial of confirmation of Armstrong World Industries’ (“AWI”) Plan of Reorganization (“POR”).  The decisions of both courts are available at armstrongplan.com.  AWI had appealed the District Court’s determination that, under the facts of this case, the distribution of warrants to current Armstrong stockholders under the POR was not permissible

Hearing on Armstrong’s Chapter 11 Appeal Set for Oct. 24, 2005 - Armstrong’s lawyers will appear before a three-judge panel of the Third Circuit Court of Appeals in Philadelphia on Monday, October 24, 2005, to argue the Company’s appeal from the denial of its Chapter 11 Plan of Reorganization. Armstrong is attempting to overturn the February 2005 ruling of the U.S. District Court that Armstrong’s Plan could not be confirmed.  U.S. District Judge Eduardo Robreno held that the Plan violated the Bankruptcy Code’s “absolute priority rule” because the Plan provided for warrants to go to existing shareholders. Armstrong asserts that the Plan met all Bankruptcy Code requirements and should be approved, as the U.S. Bankruptcy Court had ruled in December 2003.  Armstrong expects the appeals court to issue a written opinion within a few months of the oral argument. 

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