James R. Orso
                                             Kenneth F. Cook
                                             314/982-1700

                                             FOR IMMEDIATE RELEASE 
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               INTERCO TO ACQUIRE THOMASVILLE FURNITURE INDUSTRIES
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               Creates Largest Residential Furniture Manufacturer
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          St. Louis, November 20, 1995 - - INTERCO INCORPORATED (NYSE: ISS)
     announced today that it has signed a definitive agreement to acquire
     Thomasville Furniture Industries, Inc., a wholly owned subsidiary of
     Armstrong World Industries,  for approximately $331 million in cash. 
     The acquisition will create the largest residential furniture
     manufacturer in the United States with combined revenues exceeding
     $1.6 billion.

          Thomasville Furniture Industries, based in Thomasville, North
     Carolina, manufactures and markets residential wood and upholstered
     furniture under the Thomasville name as well as a line of promotional
     and ready-to-assemble furniture under the Armstrong name.  For the
     year ended December 31, 1994, Thomasville reported sales and operating
     profit of approximately $527 million and $39 million, respectively. 
     INTERCO, which manufactures and markets residential furniture through
     its operating subsidiaries, Broyhill Furniture Industries and The Lane
     Company, had sales for the same period of $1,073 million and operating
     profit of $102 million (excluding depreciation and amortization
     relating to fair value adjustments).

          INTERCO has commitments from major financial institutions to
     finance the cash purchase with a combination of bank debt and
     receivables financing.  The transaction is accretive; on a pro forma
     basis to INTERCO's historical earnings per share, the transaction
     would have been accretive in the year ended December 31, 1994 and in
     the nine months ended September 30, 1995.

           Richard B. Loynd, Chairman of the Board and Chief Executive
     Officer of INTERCO, commented, "This acquisition joins three of the
     most highly recognized furniture brands, Broyhill, Lane and
     Thomasville, into the largest residential furniture manufacturing
     company in the industry.  The combination results in a company that
     has superior marketing, product development and distribution, and an
     extremely high quality group of employees.  This transaction
     represents another significant step forward in the transformation of
     INTERCO into a growing, financially strong, pure-play furniture
     manufacturer."

          "Thomasville has been INTERCO's number one acquisition candidate,
     and it will strengthen the combined company's ability to compete more
     effectively and more profitably in the $20 billion residential
     furniture marketplace.  We believe this acquisition will benefit our
     shareholders by combining the Thomasville name with INTERCO's brands,
     Broyhill and Lane, and through opportunities associated with
     increasing purchasing and distribution synergies and more efficient
     use of manufacturing capacity," Loynd added.

          Founded in 1904, Thomasville has consistently marketed its
     products under the Thomasville name, a name that is recognized as a
     symbol of quality, craftsmanship, style and value.  Thomasville's
     operating strategy is to produce a wide variety of high quality
     residential furniture that appeals to consumers' changing tastes
     while, at the same time, aggressively enhancing its retail
     distribution network and capitalizing on the brand name identification
     associated with Thomasville.

          Armstrong is a leading manufacturer and marketer in the building
     materials industry and among the best-known names in interior
     furnishings such as vinyl flooring and acoustical ceilings, and a
     variety of industrial specialty products.  The sale of Thomasville
     will enable Armstrong to concentrate its financial resources on growth
     opportunities in the company's core businesses.

          Fred Starr, President and Chief Executive Officer of Thomasville,
     commented, "We have always admired the way INTERCO conducts its
     furniture operations and its high quality products fit the market in a
     way that is very complementary to ours. The entire Thomasville
     management team welcomes the opportunity to work side by side with the
     INTERCO companies and their management teams to create the largest and
     most profitable company in the residential furniture industry."  Mr.
     Starr will continue as President and CEO of Thomasville after the
     closing of the transaction.

          The transaction is subject to customary conditions, and is
     expected to close by December 31, 1995.  Smith Barney Inc. assisted
     INTERCO in the negotiation of the transaction.