Owens Corning to acquire Saint-Gobain''s

27 July 2007

Global leader in building materials systems and composite solutions, Owens Corning, today announced the signing of a definitive agreement under which Owens Corning will acquire Saint-Gobain''s reinforcement and composites business for $640 million.

The acquisition further strengthens Owens Corning''s position as a market leader in glass reinforcements and composites as the acquired business comprises 20 plants, which includes 12 glass fibre reinforcements plants, six fabrics plants and two plants that produce both reinforcements and fabrics. The Wichita Falls, Texas, facility of Saint-Gobain is not part of the transaction.

In 2006, the acquired Saint-Gobain reinforcement and composites business had sales of approximately $900 million, and approximately 4,500 employees. With this acquisition, the expanded Owens Corning composite solutions business will have 42 production facilities in 16 countries.

This would have translated to about 9,000 employees and combined sales of approximately $2.2 billion on a pro forma basis in calendar year 2006 for the new Owens Corning composite solutions segment, compared with actual reported segment sales in 2006 of $1.6 billion.

The transaction is expected to close by the end of 2007 and remains subject to regulatory approval in several jurisdictions, along with customary closing conditions. Owens Corning will divest its facilities in Battice, Belgium; Birkeland, Norway; and Huntingdon, Penn, in order to address regulatory concerns related to the transaction. The Wichita Falls, Texas, facility of Saint-Gobain is not part of the transaction.

"This is a transformational acquisition for Owens Corning," said Dave Brown, Owens Corning president and chief executive officer. "This acquisition expands Owens Corning''s footprint around the world and strengthens our position in key markets such as Russia, China, India, Mexico and Brazil. It also brings talented people and proven technology to Owens Corning, and it balances our exposure to the cyclical downturns associated with the residential construction market in North America. Composite solutions is a core business at Owens Corning and we are committed to its continued growth."