Formica Exits Chapter 11 Emerges With Strengthened Balance Sheet; Debt Reduced by $370 Million CINCINNATI, June 10 /PRNewswire/ -- Formica Corporation announced today that it has completed the necessary steps to implement its Plan of Reorganization and has successfully emerged from Chapter 11. "This achievement is attributable to the confidence that our sponsors have in our company and our future, the loyalty of our customers, the professionalism and dedication of our employees, the commitment and support of our creditor groups, and the recognition of the strength of the Formica(R) brand and its reputation for quality, durability and industry leading innovation," said Frank A. Riddick, III, President and Chief Executive Officer of Formica. "We accomplished what we set out to do at the outset of our Chapter 11 restructuring. We have substantially decreased our long-term debt, while we streamlined and improved our service and operations. With the Chapter 11 process behind us, we can now increase our focus on what continues to be our top priority -- providing our global customers with a portfolio of design coordinated, branded surfacing solutions and products," said Riddick. Formica exits Chapter 11 with a strengthened balance sheet, including consolidated debt of approximately $160 million in long term financing, down from more than $540 million in debt at the time of the filing in March 2002, lower interest expense and improved efficiencies arising from the consolidation of manufacturing and warehousing facilities. "We are grateful for the support of our lenders and the confidence they have displayed in Formica as we emerge from Chapter 11," Riddick stated. In conjunction with emergence, Formica has entered into an amended Term Loan Facility for $135 million with its existing secured lenders. General Electric Capital Corporation is the Term Loan Agent. Formica said that it had also closed on a $65 million revolving credit facility. Wells Fargo Foothill, Inc. is the Revolving Credit Agent. "This exit financing will provide the Company with sufficient liquidity to continue to meet our financial requirements and grow our business globally," said Riddick. As part of the Plan of Reorganization, a group of investors led by Cerberus Capital Management L.P. and Oaktree Capital Management LLC have purchased the common shares of the Successor Company for $175 million in cash. Substantially all of these proceeds will be used to repay existing secured lenders. Management will hold options to purchase approximately 10% of the common shares. About Formica Formica Corporation was founded in 1913, and is the preeminent worldwide manufacturer and marketer of decorative surfacing materials, including high-pressure laminate and solid surfacing materials. Formica has sales operations in approximately 100 countries. Additional information about the company is available on Formica's Web site at http://www.formica.com/ DATASOURCE: Formica Corporation CONTACT: Jeff Lloyd or Steven Goldberg, both of Sitrick And Company Inc., +1-212-573-6100, for Formica Corporation Web site: http://www.formica.com/

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