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Owens Corning Announces Multi-Million Dollar Investment to Increase Loosefill Insulation Capacity and Meet Demand for More Energy-Efficient Homes

To meet increasing customer demand for more energy-efficient homes due to high energy prices and the Energy Policy Act, Owens Corning today announced a multi-million dollar expansion to produce an additional 60 million pounds per year of unbonded fiberglass loosefill insulation.

Owens Corning is converting a pre-existing idled facility in Mount Vernon, Ohio, to produce the product. Using proprietary, capital-efficient furnace equipment, the facility is expected to be up and running by the 3rd quarter of 2006 and will employ nearly 30 people.

"As a leader in the insulation industry, we will continue to expand capacity for our customers," said George Kiemle, president of Insulating Systems Business, Owens Corning. "This increase is part of our continual effort to ensure the lowest-cost, most capital-efficient production and superior customer service. Equally exciting is that we'll again be working with the citizens of Mount Vernon who have continually been strong supporters of our business, our operations and our employees."

Overall, the insulation market and the building products industry in general are facing significant, unprecedented demand driven by record housing starts, devastating hurricanes, record energy prices, and the 2006 energy tax bill.

This announcement is in addition to other steps taken by Owens Corning to add fiberglass capacity throughout 2004, 2005 and 2006, which have resulted in the company producing more fiberglass insulation in 2005 than in any one of the previous 67 years of the company's history.

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