ARMSTRONG REPORTS DISCOLORATION IMPACT

LANCASTER, PA., October 3, 1996--Armstrong World Industries announced today that
its third-quarter after-tax earnings will be adversely affected by approximately
$22 million or $0.53 per share due to costs associated with the discoloration of
a limited portion of its Residential Inlaid Color Sheet Flooring product lines.
As reported earlier, in July the company's early warning processes, including
information from retailers, indicated that a discoloration was occurring in a
limited number of inlaid product lines:  Designer, Designer II, Fundamentals and
VIOS.  The source of the discoloration was identified and traced to a raw
material used in certain of our production over a nine-month period potentially
affecting less than 4 percent of total flooring unit volume produced in the
United States or approximately 4.5 million square yards.  Manufacturing
production was stopped for about ten days in August in order to replace the
problem raw material, and new product deliveries began through regular
distribution channels shortly thereafter.  The discoloration problem is visual
only and there are no health, environmental or safety concerns, nor does the
discoloration impact the performance of these products.

The costs associated with the discoloration issue include approximately $20
million, or $13 million after tax, associated with the writedown to realizable
value of inventory on hand at Armstrong or to be returned from independent
wholesalers.  Additionally, based on current and estimated future claims, the
company will establish a contingency reserve of $14 million, or $9 million after
tax, to cover the potential cost of removing and replacing discolored product
installed in consumers' homes.  Armstrong will continue to monitor claims levels
on these products and may make further adjustments in the reserve based on
experience.  Consumer claims for discoloration are being made through the
company's normal claims process.  While some insurance and other recoveries may
be available, the amount and timing of these recoveries cannot be determined at
this time.  The company's third-quarter earnings report is currently scheduled
for release on October 14.