CELOTEX COMPLETES SALE OF FIBERBOARD BUSINESS

The transaction included the sale of two manufacturing facilities located in Marrero, Louisiana and Sunbury, Pennsylvania. In addition, Celotex will continue to sell fiberboard products on behalf of Knight Industries for a period of time under a sales agency agreement. Celotex' fiberboard products business operations accounted for approximately twenty-five percent (25%) of the company's fiscal 2001 year-to-date revenue.

“The sale of this business operation allows the employees at the fiberboard products manufacturing plants to continue to produce and sell the same high quality fiberboard products they have become known for in the industry, now as part of Knight Industries, said John P. Borreca, Celotex President and Chief Executive Officer.

The sale of Celotex' fiberboard products business operations is part of a process that began in November 1999, when Borreca announced the Asbestos Settlement Trust, Celotex' sole shareholder, was seeking a buyer for the company. In June 2000, Celotex announced the sale of its gypsum wallboard and ceiling products business operations to BPB plc of the United Kingdom and the sale of its roofing products business operations to CertainTeed Corporation of Valley Forge, Pennsylvania.

Celotex Corporation is a manufacturer of rigid foam insulation for commercial and residential markets. In fiscal year 2001, which ends August 31, 2001, gross sales are projected to be approximately $150 million. The company employs approximately 300 personnel and operates 5 manufacturing facilities located within the United States.

For more information about Celotex or its products, visit http://www.celotex.com or call 1-800-CELOTEX.

This eUpdate posting by: Steve Joyce