Owens Corning To Acquire Modulo/ParMur Group, a Leading European Manufactured Stone Operation

TOLEDO, Ohio – July 25, 2006 – Owens Corning (OWENQ.OB) today announced it has signed a purchase agreement to acquire The Modulo™/ParMur Group, a market-leading manufacturer and distributor of interior and exterior decorative wall claddings in Europe. The acquisition will further the global expansion of the Owens Corning Cultured Stone® business in the European building products market.

The transaction, valued at approximately $32 million (€25.5 million), is expected to close in September.

“We are excited about combining the strength of the Modulo/ParMur brands, reputation for service, distribution and manufacturing network together with Owens Corning’s Cultured Stone® business to better meet the needs of our customers worldwide,” said Chuck Stein, president, Owens Corning Cultured Stone®. “This acquisition, combined with the recent launch of our new manufactured stone facility in Asia, will serve the continued global growth in the demand for these products, which add warmth, curb appeal and value to the world’s homes and businesses.”

The Modulo/ParMur Group, based in Bray-sur-Seine, France, designs, manufactures and markets manufactured stone veneer wall and floor products under the Modulo and ParMur brands. Modulo and ParMur are plaster-based interior wall and cement-based exterior wall-cladding products, which are distributed primarily through the DIY market in Europe.

In addition to Bray-sur-Seine, the company operates two additional manufacturing sites in Forbach, France, and Turda, Romania. Modulo/ParMur has nearly 150 employees.

“As an industry leader in Europe, it is an incredible opportunity for Modulo/ParMur and its employees to join forces with Owens Corning’s market-leading brand of stone in North America,” said Christian Roggeman, general manager, The Modulo/ParMur Group. “This will result in product and technology synergies that will add value to our customers around the world.” Mr. Roggeman was appointed general manager, Owens Corning Cultured Stone® Europe.

The transaction is subject to the approval of applicable regulatory and judicial authorities.

Owens Corning is the world’s largest producer of manufactured stone veneer products. The business began making replicas of natural stone in 1962 and today offers more than 20 textures, 80 colors and countless blended texture and color options for interior and exterior applications. For more information visit Owens Corning’s Cultured Stone® Web site at www.culturedstone.com.