Homasote Company to deregister its Common Stock with the SEC

PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT INFORMATION COMMUNICATIONS OFFICE 800-257-9491 (EXT. 1215) 609-883-3300 WEST TRENTON, N.J. -On September 29,2003, Homasote Company (HMTC) filed a Form 15 with the Securities and Exchange Commission (SEC) to deregister its Common Stock with the SEC and thereby suspend its obligation to file future quarterly, annual and other reports with the SEC and solicit proxies pursuant to SEC rules. Homasote anticipates that it will continue to make its financial statements available on a quarterly and annual basis to its shareholders even though it will no longer be obligated to file such statements with the SEC. Warren Flicker, Chairman of the Board and Chief Executive Officer of Homasote stated, "The Board of Directors of Homasote believes that it is in the best interest of the shareholders for the Company to terminate its obligations to make SEC filings. While the Board considered many factors before arriving at this decision, the most important benefit to the shareholders is the saving of greatly escalating costs associated with the filing obligations of a public company. The Board believes that substantial accounting and legal fees, printing costs and filing fees, as well as the valuable time of executive personnel, will be saved in the future by this action. "Nevertheless, the Board is acutely mindful of its obligations to provide current information to shareholders, and the market as a whole, on operations of the Company. Therefore, we anticipate continuing to make our financial statements available on a quarterly and annual basis to our shareholders and the marketplace. We believe that such information will promote the ability of brokers and dealers to continue to provide quotations on www.pinksheets.com and other quotation services. This change is part of the continuing efforts of Homasote to reduce costs and streamline corporate activities in order to preserve and enhance shareholder value." About Homasote Company Homasote Company (http://www.homasote.com) is America's oldest manufacturer of building products made from recycled wastepaper. Each year Homasote converts 80,000 tons of post-consumer waste paper into unique environmentally friendly structural, sound control building products and industrial packaging. Homasote's 750,000- square-foot facility in West Trenton, New Jersey is the only manufacturing plant of its kind in the United States. Forward-Looking Statements This news release contains forward-looking statements that reflect management's current views of future events and operations. These forward-looking statements are based on assumptions, external factors and other risks. Actual results could differ materially from these forward-looking statements.