Owens Corning Reports Record Quarterly Sales

TOLEDO, OHIO (Wednesday, November 02, 2005) - Owens Corning today reported third
quarter sales of $1.618 billion, the highest quarterly total in company
history. Sales for the period were up five percent, compared with $1.541
billion for the same quarter last year. For the first nine months of 2005,
sales totaled $4.610 billion, a 10 percent increase from the year prior.
"Demand for our products and services remained strong during the quarter,"
said Dave Brown, president and chief executive officer. "Our financial
results were mixed due to increased costs for energy, energy-related
commodities and transportation, partially offset by price increases. We
expect these cost pressures to continue."
For the third quarter, the company reported income from operations of $139
million, down nine percent, compared to $153 million in the same period of
2004. For the first nine months of 2005, the company reported a loss from
operations of $3.973 billion, including a $4.342 billion non-cash asbestos
charge in the first quarter, compared to income from operations of $281
million in the same period of 2004.
During the third quarter, the United States Third Circuit Court of Appeals
reversed the District Court's prior order that had approved substantive
consolidation in Owens Corning's Chapter 11 proceedings. As a result of such
reversal, the company has determined that certain post-petition interest and
fees under the company's pre-petition credit facilities will probably be
payable, and accordingly, it has accrued those expenses (for the five-year
period from the October 2000 petition date through the end of the third
quarter of 2005) during the quarter. That accrual resulted in a non-cash
charge of $538 million being recorded in the quarter. With the charge, the
company recorded a net loss of $267 million in the third quarter, compared to
net income of $94 million in the same period of 2004.
The demand outlook for Owens Corning products and services remains
positive for the remainder of the year. Longer term, the company is cautious
about the ability of the U.S. economy to maintain the current level of housing
demand and believes a continued rising interest rate environment could cause
the U.S. housing market to soften from recent high levels. The Energy Policy
Act of 2005 and the effect of recent hurricanes in the Southeast U.S. may
serve to mitigate this softening. The Energy Policy Act is expected to
increase demand for energy-efficient improvements in 2006 and 2007,
particularly for insulation or other systems designed to reduce heat loss. An
increase in hurricane-related demand for residential roofing and siding is
anticipated.
When communicating to its Board of Directors and employees regarding the
operating performance of the company, management excludes certain items,
including those related to the company's Chapter 11 proceedings, asbestos
liabilities and restructuring activities. In the third quarter of 2005, such
items amounted to a net charge of $7 million, compared to a net credit of $8
million during the same period of 2004. For the first nine months of 2005,
such items included a $4.342 billion non-cash asbestos charge in the first
quarter and additional net charges of $26 million, compared to a net charge of
$25 million for the same period of 2004. Excluding these items, the company's
income from operations for the third quarter 2005 increased one percent over
the same period last year, and 29 percent for the first nine months of 2005
compared to 2004. The company recognizes that excluding these items is not
necessarily a more meaningful measure of performance than is operating income
(loss) reported on a GAAP basis. In addition, such presentation is not
necessarily indicative of the results that the company would have achieved if
the company was not subject to Chapter 11 proceedings.
Owens Corning has an unconditional commitment to safety in the workplace.
As a result of that commitment, through the first nine months of the year, the
company has had a 34 percent reduction in the number of recordable employee
injuries compared to last year.
Owens Corning (OTC: OWENQ) is a world leader in building materials systems
and composites systems. Additional information is available on Owens Corning's
Web site at http://www.owenscorning.com or by calling the company's toll-free general
information line: 1-800-GET PINK.

On October 5, 2000, Owens Corning and 17 United States subsidiaries filed
voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in
the U.S. Bankruptcy Court for the District of Delaware. The Debtors are
currently operating their businesses as debtors-in-possession in accordance
with provisions of the Bankruptcy Code. The Chapter 11 cases of the Debtors
are being jointly administered under Case No. 00-3837 (JKF). The Chapter 11
cases do not include other U.S. subsidiaries of Owens Corning or any of its
foreign subsidiaries. The Debtors filed for relief under Chapter 11 to
address the growing demands on Owens Corning's cash flow resulting from the
substantial costs of asbestos personal injury liability.
On October 24, 2003, the Debtors, together with the Official Committee of
Asbestos Claimants and the Legal Representative for future asbestos personal
injury claimants, filed an amended Joint Plan of Reorganization in the U. S.
Bankruptcy Court for the District of Delaware. The Plan is subject to
confirmation by the Bankruptcy Court. It is expected that the Plan will be
significantly amended prior to confirmation.
The current Plan provides for partial payment of all unsecured creditors'
allowed claims, in the form of new common stock and notes of the reorganized
company, and cash. Additional distributions from potential insurance and other
third-party claims may also be paid to certain classes of creditors, but it is
expected that all classes of pre-petition unsecured creditors will be
impaired. Therefore, the Plan also provides that the existing common stock of
Owens Corning will be cancelled, and that current shareholders will receive no
distribution or other consideration in exchange for their shares. It is
impossible to predict at this time the terms and provisions of any plan of
reorganization that may ultimately be confirmed or the treatment of creditors
thereunder.

This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These forward-looking
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those projected in these statements. Further
information on factors that could affect the company's financial and other
results is included in the company's Forms 10-Q and 10-K, filed with the
Securities and Exchange Commission.

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