Asia PR News

TOLEDO, Ohio, and PARIS, July 27 /PRNewswire-AsiaNet/ –

Customers benefit from improved technology, expanded product range and
geographic reach

Creates focused and efficient business with world-class technology and
products

Establishes strong global company with $1.8 billion (euro 1.5 billion) in
annual sales

Owens Corning and Saint-Gobain jointly announced today that they are in
discussions to merge Owens Corning’s Reinforcements Business and
Saint-Gobain’s Reinforcement and Composites Businesses (a part of the entity
known as Vetrotex) into a new company, to be called Owens Corning-Vetrotex
Reinforcements. The partnership of these two businesses would establish a
global company in reinforcements and composite fabrics products, with
worldwide revenues of approximately $1.8 billion (euro 1.5 billion) and 10,000
employees. The new company would have operations across Europe, North and
South America, and Asia, including the following key emerging markets: China,
India, Russia, Mexico and Brazil.

Saint-Gobain’s Textile Solutions business, serving mainly construction
markets, will remain part of Saint-Gobain’s High Performance Materials Sector.
Owens Corning’s Veil Technologies and Fabwel businesses will remain
part of the Owens Corning Composite Solutions Business.

A Customer-Focused Enterprise
Owens Corning-Vetrotex Reinforcements would bring together two pioneers in
the reinforcements and composite fabrics industry, each with long histories of
product innovation and customer focus.

Owens Corning-Vetrotex Reinforcements would provide outstanding service to
its customers as a result of improved geographic scale, an expanded product
base and combined technological expertise. The new company would better serve
both regional and global customer needs by taking advantage of new world-class
technologies and innovative products, and improved logistics, productivity and
supply efficiency. The new company and its customers would also benefit from
access to greater financial and human resources.

The new company would have a strengthened presence in both developed and
emerging markets. This broad geographic presence would lead to more security
of supply and reduced shipping time for current and future customers. Owens
Corning-Vetrotex Reinforcements would participate more effectively in today’s
increasingly competitive marketplace.

"This is an exciting opportunity for Owens Corning, our customers and our
employees," said Dave Brown, President and Chief Executive Officer of Owens
Corning. "It demonstrates our commitment to the composites business and our
customers on every continent. We plan to combine the best of both companies,
grow with our customers, and deliver strong operating results."

The Saint-Gobain Group President, Jean-Louis Beffa said. "The combined
company is an excellent project. It would enable us to better serve our
customers and ensure a promising future for our Reinforcement and Composites
business and its employees."

Structure and Financial Impact
While the parties have not yet reached a definitive agreement, it is
anticipated that the transaction would be structured as a joint venture, with
Owens Corning owning a 60 percent equity interest and Saint-Gobain owning the
remaining 40 percent. After a minimum of four years, the joint venture
provisions would give an option to Saint-Gobain to sell its 40 percent stake
to Owens Corning, and Owens Corning to buy the same.

On a pro forma basis, the new company would have approximately $1.8
billion (euro 1.5 billion) in annual revenues. The Owens Corning-Saint-Gobain
joint venture would present significant opportunities for synergies. These
are expected to come primarily from scale benefits in purchasing and
procurement; operational and technological plant improvements; improved
distribution costs; reduced administrative costs; and asset management
optimization.

The transaction is expected to close by early 2007 and is subject to the
negotiation and execution of definitive transaction documents, Board of
Directors approval by the parent companies, and regulatory and antitrust
approvals.

Leadership and Operations
Owens Corning-Vetrotex Reinforcements would be headquartered in Toledo,
Ohio, and would maintain leadership offices in key locations around the world.
The Board of Directors for the new company would be comprised of three
representatives from Owens Corning and two from Saint-Gobain. The Chief
Executive Officer of Owens Corning-Vetrotex Reinforcements would be Chuck
Dana, currently President of Owens Corning’s Composite Solutions Business. The
new organization would be managed by an executive management team comprised of
key leaders from Owens Corning and Vetrotex.

About Owens Corning
Owens Corning (OTC Bulletin Board: OWENQ) is a world leader in building
materials systems and composite solutions. A Fortune 500 company for more than
50 years, Owens Corning people redefine what is possible each day to deliver
high-quality products and services ranging from insulation, roofing, siding
and manufactured stone veneer, to glass composite materials used in
transportation, electronic, telecommunications and other high-performance
applications. Since the company’s founding in 1938, Owens Corning has become a
market-leading innovator of glass fiber technology with sales of $6.3 billion
in 2005 and 20,000 employees in 26 countries. Additional information is
available at www.owenscorning.com.

About Saint-Gobain
Saint-Gobain Group specializes in the design, production and distribution
of functional materials for the construction, industrial and consumer markets.
The Group is organized into five business sectors: Flat Glass, Packaging,
Construction Products, Building Materials Distribution, and High-Performance
Materials.

Established in more than 50 countries, Saint-Gobain is the market leader
in each of its core businesses. In 2005, it achieved more than euro 35 billion
sales with around 200,000 employees.

Forward Looking Statements
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.

SOURCE: Owens Corning

CONTACT: Mr. Jason Saragian
of Owens Corning Media Relations Department
+1-419-248-8987

or

Mr. Scott Deitz
of Owens Corning Investor Relations
Department
+1-419-248-8935

or Saint-Gobain External Relations Department
+33 1 47 62 32 78

or Mrs Florence TRIOU-TEIXEIRA
+33 1 47 62 45 19

or Mr. Alexandre ETUY
+33 1 47 62 37 15
or Fax, +33 1 47 62 50 62

both of Saint-Gobain Investor
Relations Department

Company News On-Call: http://www.prnewswire.com/comp/677350.html

Web site: http://www.owenscorning.com

(OWENQ)