1. 2007 AT A GLANCE
Positioned to Perform

2. OWENS CORNING
Founded in 1938, Owens Corning is a market-leading innovator of glass fiber technology
with sales of $5 billion in 2007 and 18,000 employees in 26 countries on five continents.
Welcome to the Owens Corning 2007 At a Glance report,
which profiles Owens Corning’s core business groups, business
performance in 2007 and growth objectives for 2008.
As a global leader in building materials and glass fiber reinforcements,
we are committed to winning in the marketplace with our customers.
Owens Corning took strategic actions in 2007 that position the company
to perform. Most notably, we completed a large composites acquisition,
further globalizing the business and transforming the footprint of the company.
We also completed a $100 million cost-reduction program and successfully
divested the vinyl siding business unit.
In addition to our growth in composites, energy efficiency continues to
present a growing market opportunity for our building materials businesses.
The strength of our composites business and our excellent market position
in building materials will position the company to perform through an
otherwise weak U.S. housing market in 2008.
We greatly appreciate your interest in Owens Corning.
Michael H. Thaman
Chairman and Chief Executive Officer
Financial HIGHLIGHTS
Successor Combined Successor Predecessor
12 months ended 2 months ended 10 months ended 12 months ended
(in millions) 2007 2006 Dec. 31, 2006 Oct. 31, 2006 2005 2004 2003
Net sales $4,978 $5,399 $772 $4,627 $5,177 $4,626 $4,061
Gross margin 777 1,002 116 886 1,070 928 757
Gross margin percentage 15.6% 18.6% 15.0% 19.1% 20.7% 20.1% 18.6%
Marketing, administrative &
498 494 86 408 521 490 422
other expenses
Marketing, administrative & other
expenses as a percentage of sales 10.0% 9.1% 11.1% 8.8% 10.1% 10.6% 10.4%
Science & technology expenses 63 78 30 48 56 44 41
Adjusted earnings before
interest and income taxes 344 529 73 456 486 391 308
Net cash flow provided by
(used for) operating activities 182 (1,888) 15 (1,903) 746 449 295
Additions to plant and equipment 247 361 77 284 288 232 208
Total assets $7,872 $8,470 $8,470 $8,714 $8,735 $7,639 $7,358
1

3. BUSINESS OVERVIEW
COMPOSITE SOLUTIONS
Owens Corning’s composites business provides high-performance
materials for a broad range of markets including transportation,
wind energy, infrastructure and aerospace. The composite
29% U.S. & Canada
materials market is expected to continue to grow at about twice the
Commercial & Industrial
rate of the global gross domestic product (GDP). Glass-reinforced
composites are a durable, light-weight, corrosion-resistant solution to 61% International
traditional materials like aluminum, wood or steel.
10% U.S. & Canada
• World’s leading producer of glass fiber composites Residential Construction
• One of the largest acquisitions in Owens Corning’s history
in 2007 changed the company’s global footprint
• Synergies of $100 million by 2011; $30 million expected in 2008
INSULATING SYSTEMS
40% U.S. & Canada
Market opportunity exists in re-insulation. Insulating Systems is
New Residential
meeting market demand for increased energy efficiency and Construction
greenhouse gas reduction in the midst of a weak U.S. housing
market. Buildings are the single largest opportunity in these areas.
20% U.S. & Canada
Repair & Remodel
•The leading producer of residential insulation in North America
• The leading producer of commercial and 29% U.S. & Canada
industrial insulation in North America Commercial & Industrial
11% International
• Insulation recognized as the single, most cost-effective
greenhouse gas abatement measure
ROOFING AND ASPHALT
25% U.S. & Canada
The Duration Series Shingle with SureNail® technology is a
®
New Residential
roofing innovation that completed its rollout six months Construction
ahead of schedule in the U.S. in 2007. The new product is leading
the market in its transition to higher-margin, laminated shingles. 64% U.S. & Canada
Repair & Remodel
• A leading producer of residential shingles in North America
11% U.S. & Canada
• The leading producer of roofing asphalts in North America Commercial & Industrial
• Roofing essentials offers a market opportunity for growth in 2008
OTHER BUILDING
MATERIALS AND SERVICES
52% U.S. & Canada
Owens Corning strengthened this business segment in 2007 New Residential
Construction
with the divestiture of its vinyl siding business unit and the
complete closure of its HOMExpertsTM service line.
The segment is now comprised of the company’s masonry 19% U.S. & Canada
Repair & Remodel
products and construction services businesses.
19% U.S. & Canada
• Expanded its masonry product line with the addition Commercial & Industrial
of ProStone,TM an entry-level brand
10% International
• Basement Finishing SystemTM availability extended into Canada
2

4. COMPOSITES A composite is a reinforcing material like glass fiber that is combined
with a polymer to produce structural or functional properties that
enhance performance in a variety of end-use applications.
INVESTING IN GLOBAL GROWTH
Growth in Emerging Markets
Owens Corning completed Russia, India, Mexico and Brazil,
the most significant acquisition while profitably growing its Owens Corning expects
in its history in 2007 with the revenue from international, composites growth in Asia
purchase of Saint-Gobain’s commercial and industrial to continue to exceed
reinforcements and composite sources. As a result, the global growth rates. The
fabrics businesses. The acquisition positions the composites market in China
acquisition further extends Owens Corning brand in and India alone are projected
Owens Corning’s position as global markets where the to grow by double-digits in
the market leader in an industry company does not have a 2008. Today, 25 percent of
that continues to grow at about building materials presence. the company’s composite
twice the rate of the global In 2007, more than 60 percent manufacturing capacity
gross domestic product (GDP). of sales in the composites is located in developing
business came from outside countries around the world to
The acquisition transformed of the United States. meet that customer demand.
the footprint of Owens Corning
by further globalizing its Owens Corning expects that
Newly Acquired Facilities
composites business, and the acquisition will deliver
tripling the size of its composite cost synergies of more than
Alcala, Spain
fabrics business to serve the $100 million by 2011, with at
Bangpakong, Thailand
wind energy market. The newly least $30 million in synergies
combined business increases achieved in 2008. Synergies Besana, Italy
Owens Corning’s presence in will come primarily from
Brunswick, Maine, U.S.
fast-growing emerging markets reduced operating costs,
Capivari, Brazil
around the world like China, improved energy efficiency,
and reduced shipping costs. Chambéry, France
Changzhou, China
Doudian (Beijing), China
Gous-Khroustalny, Russia
Gunsan, Korea
Hangzhou, China
Geert De Landsheer Jiading, China
VP & Managing Director,
Global Technical Fabrics Thimmapur, India
Marcio Sandri
Tsu, Japan
VP & Managing Director,
Americas
Vado Ligure, Italy
Vendome, France
Vercelli, Italy
Wichita Falls, Texas, U.S.
Steven Vermeulen Zele, Belgium
VP & Managing Director,
Non-Woven Technologies
Arnaud Genis
VP & Managing Director,
Europe, Global Technical
Fabrics and Specialties
The Owens Corning composites business is managed
by a global team that is based around the world to
be closer to the customer.
Sangkyoo Han
3
4 VP & Managing Director,
Asia-Pacific

5. A COMMON HERITAGE
Global Integration Energy Intensity Reduction
For more than 70 years, Owens Corning
Owens Corning is quickly In 2007, Owens Corning’s and Saint-Gobain Vetrotex played key
capitalizing on its newly composites business made roles in the development and global use
acquired composites assets significant improvements in of composite materials. Owens Corning’s
to better serve customers, reducing the energy intensity, acquisition of Saint-Gobain’s reinforcement
drive global growth and or energy usage, of its and composite fabrics businesses in 2007
realize synergies. operations to optimize combines a common heritage that serves
manufacturing productivity. as a foundation to a dynamic future.
The company is investing Facilities in Fort Smith, Ark.,
1930s – 1940s
in its composites facilities United States, and Rio Claro,
• Owens Corning produces the first
to meet demand in fast- Brazil, reduced their energy
continuous glass filament material
growing regions of the use by double-digit percentages
world. Beginning in 2008, following capital improvement • Saint-Gobain acquires glass
the company announced projects completed in 2006. fiber patents in Europe
that it is working to expand The company is implementing
• Owens Corning develops fiberglass-
its glass reinforcements and similar changes at production
reinforced plastic laminates for use
composite fabrics production facilities around the world
in aircraft parts and boat hulls
capabilities in China and and tracking the impact of
Russia within the next these changes on its global
1950s – 1960s
two years to support energy footprint.
• Owens Corning develops composite
market growth in Asia
materials for auto body applications
and Eastern Europe. Owens Corning is expanding
the use of its most advanced • Saint-Gobain’s facility in
The expansion will position technologies for energy Chambéry, France, begins
the company’s composites intensity reduction. These production of composite textiles
organization to serve a technologies bring world-class
• Owens Corning develops
growing and diverse customer energy efficiency and emissions
high-strength glass reinforcements
base in Asia and Eastern control, while providing
Europe with industry-leading customers with unique product
1970s – 1980s
products for key markets such benefits including corrosion
• Owens Corning develops
as infrastructure, construction, resistance and high strength.
composite material for large
automotive, wind energy and
diameter pipe applications
consumer goods. Advanced Glass Melting
(AGM) is a technology • Saint-Gobain expands in Italy
Owens Corning is where innovative furnace and Spain through acquisition
accelerating its plan to design allows for more efficient
• Owens Corning introduces
achieve synergies from its heat transfer in glass batch
composite materials for auto
recent composites acquisition melting processes, saving
components and armor
where possible. As part significant energy while
of its global integration reducing environmental
1990s – 2000s
strategy, Owens Corning is emissions. This advanced
• Owens Corning introduces
consolidating its composite technology, which combines
Advantex® glass fiber material
fabrics manufacturing in oxygen with natural gas
North America from four to create a more efficient • Saint-Gobain introduces
to two facilities in 2008. This combustion process, can TWINTEX® reinforcement
enables the company to save more than 40 percent material
serve its composite fabrics of natural gas costs in
• Owens Corning develops
customers more efficiently glass reinforcement
new high-performance
with the increased capabilities manufacturing. To learn
reinforcements platform
of its newly acquired facilities. more, see Owens Corning’s
sustainability report at www.
owenscorning.com/sustainability. 4

6. INNOVATIVE
CUSTOMER SOLUTIONS
Global Growth in Wind Energy
The increasing demand for renewable energy continues to drive the capacity
expansion of the wind power market on a global scale. As a result, the demand
for composite materials in wind power is expected to continue to see double-
digit growth in 2008 and beyond.
Owens Corning is the leading provider of glass reinforcements for wind turbine
blades. Glass reinforcements enable wind blade fabricators to make longer
blades, which makes wind a more attractive, cost-competitive energy resource.
Owens Corning’s WindStrandTM is a new generation of high-performance
reinforcements specifically developed for composite wind turbine applications.
The product continues to capture market share by giving wind blade fabricators
the ability to produce significantly stronger and lighter composite parts at a
substantial cost savings. This is an example of how Owens Corning is delivering
shareholder value by growing its customers’ businesses.
Wind energy is estimated to be the fastest growing
renewable energy source, but still accounts for only
1 percent of the world’s electricity consumption. Today,
a typical wind blade measures 40 meters in length
and contains 7 metric tons of glass fiber per blade.
6
5

7. HIGH
PERFORMANCE
SOLUTIONS
Owens Corning high-performance
reinforcements are meeting
composite industry demand
for large-volume production of
high-strength glass. Large-volume
reinforcement production allows
composite manufacturers to
favorably compete with traditional
materials like wood, steel or
aluminum. The innovative product
platform is based on a patented
technology designed to deliver
superior mechanical properties
with significantly higher thermal
and corrosion resistance.
In addition to WindStrand,TM
these new reinforcements include
FliteStrand,TM a light-weight, high-
strength material for the aerospace
industry; ShieldStrand,TM a high-
strength material with significantly
higher thermal resistance for armor
Market Opportunity
applications; and XStrand,TM a high-
fatigue material with strong impact Despite consistent year-over-year growth, the composites industry
performance for industrial, sports comprises a small percentage of the overall materials market –
and recreation applications. representing a significant market opportunity. The per capita usage
of composite materials around the world is seven times less than the
amount consumed per capita in the United States today, while growing
at a double-digit rate in developing countries.
Composite materials are increasingly used in automotive,
infrastructure, construction and other applications because of
their durable, high-strength, light-weight characteristics. These
mechanical properties bring innovative value to customers
while helping the world reduce its environmental footprint.
6
7

8. UILDING MATERIALS ROOFING UNDERLAYMENT
HIP AND RIDGE
ROOFING
ATTIC INSULATION
ICE & WATER BARRIER
MANUFACTURED STONE VENEER
ATTIC RAFTER VENTS
WALL INSULATION
UNDER FLOOR INSULATION
RIGID FOAM
HOUSE WRAP
INTERIOR INSULATION
DUCT WORK
NEARLY 80 MILLION HOMES
INSULATED CONCRETE FORMS
IN THE UNITED STATES ARE
BASEMENT FINISHING SYSTEMTM
UNDER-INSULATED
The actual photograph has been modified to illustrate Owens Corning’s building materials product lines.
Market Leadership
MANAGING THROUGH
THE CYCLE Owens Corning is an industry leader in building materials with leading market
Financial results share in North America in residential, commercial and industrial insulation,
masonry products and roofing asphalts. Owens Corning products can be found
for Owens Corning’s
throughout a residential home. According to a 2008 brand study from the publishers
building materials
of BUILDER magazine, builders selected Owens Corning PINK FiberglasTM insulation
businesses in 2007
as the product they prefer. Builders also chose the company’s Cultured Stone®
were in-line with product as the manufactured stone veneer most recognized and most used by
the company’s builders. This same study voted Owens Corning as the most recognizable
expectations during roofing brand in the market.
one of the worst
Creating a Re-Insulation Industry
downturns in the
Owens Corning is focused on developing a re-insulation industry in 2008.
history of the U.S.
Based on the United States Department of Energy and Nielsen Claritas
housing market. studies, nearly 80 million homes in the United States are under-insulated –
Owens Corning took a significant market opportunity to help existing homeowners save energy, save
significant actions in money and reduce greenhouse gas emissions. Homeowners can save 20 percent
on their heating and cooling costs by ensuring that the attic is properly insulated with
2007 that position
a minimum of 15.5 inches of PINK insulation.
the company to
perform through the The U.S. Department of Energy estimates that as much as 45 percent of a home’s
U.S. housing cycle. energy loss is through the attic. Owens Corning’s AttiCat® is a new system innovation
As a result, the that is making it simple and practical for homeowners to properly insulate their attics.
company is poised
Owens Corning is also helping homeowners eliminate energy loss and reduce noise with
to further profit fiberglass ducts, which are 75 percent more energy efficient than standard metal ducts.
when the U.S. housing Helping top builders capitalize on this growth trend is an emerging market opportunity
market strengthens. for Owens Corning.

9. THE LARGEST
CONSUMER OF ENERGY
IN THE UNITED STATES
IS BUILDINGS
The company expects to grow its
re-insulation business by 10 percent in
2008. While this will not offset the significant
impact of the current housing cycle, it will
add to the company’s insulation sales in
positioning this business for growth as the
housing market begins to strengthen.
PINK is GreenTM
In a world of rapidly rising energy costs,
energy efficiency is a growing market
opportunity for Owens Corning. According
to the U.S. Department of Energy, buildings
consume 40 percent of energy in the
United States and account for more than
43 percent of the country’s greenhouse gas
emissions, more than industry and more
than transportation. Owens Corning is
leading the way in delivering product
solutions to meet this market need.
Building Materials Innovation
Owens Corning is delivering innovations
to the building materials market that help
customers grow their businesses and provide
a premium value to Owens Corning.
One example is the company’s Duration® Series Shingle with
SureNail® Technology. Owens Corning completed the national
rollout of this industry-leading innovation in 2007, six months
ahead of schedule. The laminate shingle product delivers
premium productivity value to roofing contractors and
high performance to homeowners.
Owens Corning is driving profitable growth in its
A 2007 McKinsey & Company
Roofing and Asphalt business by expanding its
Report on Greenhouse Gas
roofing essentials product line in 2008, enabling
contractors to create additional value for the Reduction identifies insulation
homeowner. These roofing accessories as “the single most
include ice and water barrier, roofing
cost-effective greenhouse
felt, ridge vents, and hip and ridge
gas abatement measure.”
shingles. The essentials product line
combines with Owens Corning
roofing shingles to create a
complete roofing system
for the homeowner.
8

10. MOST RECOGNIZED
IN ROOFING AND
MASONRY PRODUCTS
Owens Corning is leading the industry with one of the
broadest and most complete product lines of roofing
shingles and masonry products. Aesthetic appeal and
ease-of-application continue to make Owens Corning a
preferred brand among building contractors.
The company’s Cultured Stone® manufactured stone
veneer product has long been recognized as the premium
brand in the industry. In 2007, Owens Corning launched
ProStone,TM a quality, entry-level product line that offers
the true look and feel of stone at a value price. The
additional product line gives Owens Corning broader
access to the growing manufactured
stone veneer market.
International demand for
Owens Corning’s Masonry
Products grew at a faster
rate than the U.S. market
in 2007. The 2006
acquisition of the
European leader in interior
and exterior manufactured stone
veneer continues to drive global growth.
9

11. LEADING WITH
BEAUTY AND COMFORT
Owens Corning’s Basement Finishing SystemTM continued to
provide year-over-year growth through 2007. The system allows
remodeling contractors to provide customers with a completely
finished basement in just a few weeks. In 2007, the company
expanded the product availability into Canada. The expansion
in geographic reach positions the company for additional growth
in building finishing products.
In 2007, Owens Corning added SunSuitesTM sunrooms to its
product portfolio, an energy-efficient, multi-season living space
added to a home in just a few weeks.
By 2008, Owens Corning further grew its product line
to include Solace® windows, a fiberglass reinforced vinyl
replacement window that provides thermal efficiency.
10

12. SUSTAINABILITY
Is a Core Strategy of Owens Corning
Greening our Operations
Owens Corning
Owens Corning is elevating its manufacturing performance by improving safety,
defines sustainability reducing costs, and shrinking its resource use and emissions footprint around
the world.
as meeting the
Since 2002, the company has improved the safety of its operations by 75 percent.
needs of the The goal is to create a company of zero injuries. Today, the majority of its facilities
are operating injury free.
present without
Owens Corning has reduced its global energy intensity by 16 percent during the
compromising last 5 years, and has a 10-year goal to reduce the amount of energy required to
make its products by 25 percent from its 2002 baseline.
the world that we
The employees of Owens Corning are engaged in hundreds of critical activities to
leave to the future. meet similar aggressive goals across its entire environmental footprint.
This approach to Greening our Products
Owens Corning’s products have a significant positive impact on the environment.
business energizes During their installed life, the products that Owens Corning produces each year
result in the prevention of 1 billion tons of greenhouse gas emissions, equivalent
our people, creates to 200 million passenger cars not being driven for a year, or not using 2 billion
barrels of oil.
growth opportunities
The company is focused on the continuous life-cycle improvement or “greening” of
for our customers, its products. Building insulation, for example, is one of the most cost-effective energy
and greenhouse-gas reduction technologies in the world. Owens Corning is also the
and drives value for world’s largest supplier of glass reinforcements for wind turbine blades – a growing
source of renewable energy.
our shareholders.
Accelerating Energy Efficiency in the Built Environment
Owens Corning has amplified its commitment to sustainability with additional
organizational structure and focus, working closely with customers and partners
to drive the market demand for energy efficiency and a greener built environment.
11

13. Consolidated Statement of Earnings (Loss)
Successor Predecessor
Twelve Months Two Months Ten Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, October 31, December 31,
2007 2006 2006 2005
(in millions)
Net sales $4,978 $772 $4,627 $5177
Cost of sales 4,201 656 3,741 4,107
Gross margin 777 116 886 1,070
Operating expenses
Marketing and administrative expenses 498 86 408 521
Science and technology expenses 63 30 48 56
Restructure costs 28 20 12 –
Chapter 11 related reorganization items – 10 45 45
Provision (credit) for asbestos litigation
claims (recoveries) – – (13) 4,267
Employee emergence equity program 37 6 – –
(Gain) loss on sale of fixed assets and other 6 8 (65) (18)
Total operating expenses $632 $160 $435 $4,871
Earnings (loss) from continuing operations
before interest and taxes 145 (44) 451 (3,801)
Interest expense, net 122 29 241 740
Gain on settlement of liabilities subject
to compromise – – (5,864) –
Fresh-start accounting adjustments – – (2,919) –
Earnings (loss) from continuing operations
before taxes 23 (73) 8,993 (4,541)
Income tax expense (benefit) (8) (23) 980 (411)
Earnings (loss) from continuing operations
before minority interest and equity in
net earnings (loss) of affiliates 31 (50) 8,013 (4,130)
Minority interest and equity in net (loss) of affiliates (4) (4) – (4)
Earnings (loss) from continuing operations 27 (54) 8,013 (4,134)
Discontinued operations:
Earnings (loss) from discontinued operations,
net of tax of $5, $(5), $45, and $24, respectively 9 (11) 127 35
Gain on sale of discontinued operations,
net of tax of $40, $0, $0, and $0, respectively 60 – – –
Total earnings (loss) from discontinued operations 69 (11) 127 35
Net earnings (loss) $96 $(65) $8,140 $(4,099)
Basic earnings (loss) per common share
Earnings (loss) from continuing operations $0.21 $(0.42) $144.90 $(74.73)
Earnings (loss) from discontinued operations $0.54 $(0.09) $2.30 $0.65
Diluted earnings (loss) per common share
Earnings (loss) from continuing operations $0.21 $(0.42) $133.77 $(74.73)
Earnings (loss) from discontinued operations $0.54 $(0.09) $2.12 $0.65
Weighted average common shares
Basic 128.1 128.1 55.3 55.3
Diluted 128.8 128.1 59.9 55.3
12
13

14. Consolidated Statements of Cash Flows
Successor Predecessor
Twelve Months Two Months Ten Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, October 31, December 31,
2007 2006 2006 2005
(in millions)
Net cash flow provided by (used for) operating activities
Net earnings (loss) $96 $(65) $8,140 $(4,099)
Adjustments to reconcile net earnings
(loss) to cash provided by (used for) operating activities
Provision for asbestos litigation claims – – 21 4,277
Depreciation and amortization 343 69 209 234
Gain on sale of businesses and fixed assets (104) – (61) (14)
Impairment of fixed and intangible assets and investments in
76 – 2 8
affiliates
Deferred income taxes – (48) 208 (467)
Provision for pension and other employee benefit liabilities 45 8 83 113
Provision for post-petition interest/fees on pre-petition debt – – 247 735
Fresh-start accounting adjustments, net of tax – – (2,243) –
Gain on settlement of liabilities subject to compromise – – (5,864) –
Employee emergence equity program 37 6 – –
Stock based compensation expense 5 – – –
Restricted cash 52 (85) – –
Payments related to Chapter 11 filings (109) (131) – –
Payment of interest on pre-petition debt – (31) (944) –
Payment to 524(g) Trust – – (1,250) –
(Increase) decrease in receivables (9) 185 (78) (94)
(Increase) decrease in inventories 3 97 (103) (42)
(Increase) decrease in prepaid and other assets – 1 (36) 7
Increase (decrease) in accounts payable and accrued liabilities (106) 30 (107) 160
Proceeds from insurance for asbestos litigation claims,
– – 18 10
excluding Fibreboard
Pension fund contribution (121) (6) (43) (49)
Payments for other employee benefits liabilities (25) (4) (23) (29)
Increase in restricted cash – asbestos and Fibreboard – – (87) (16)
Other (1) (11) 8 12
Net cash flow provided by (used for) operating activities 182 15 (1,903) 746
Net cash flow used for investing activities
Additions to plant and equipment (247) (77) (284) (288)
Investment in subsidiaries and affiliates, net of cash acquired (620) – (47) (14)
Proceeds from the sale of assets or affiliates 437 – 82 19
Net cash flow used for investing activities (430) (77) (249) (283)
Net cash flow provided by (used for) financing activities
Payment of equity commitment fees – – (115) –
Proceeds from long-term debt 617 5 21 9
Payments on long-term debt (85) (5) (13) (31)
Proceeds from revolving credit facility 713 – – –
Payments on revolving credit facility (573) – – –
Payment of contingent note to 524(g) trust (1,390) – – –
Net increase (decrease) in short-term debt (13) 1 3 (6)
Payments to pre-petition lenders – (55) (1,461) –
Proceeds from issuance of bonds – – 1,178 –
Proceeds from issuance of new stock – – 2,187 –
Debt issuance costs – – (10) –
Net decrease in liabilities subject to compromise – – – (3)
Other – – 2 1
Net cash flow provided by (used for) financing activities (731) 54 1,792 (30)
Effect of exchange rate changes on cash 25 – 6 1
Net increase (decrease) in cash and cash equivalents (954) (116) (354) 434
Cash and cash equivalents at beginning of year 1,089 1,205 1,559 1,125
Cash and cash equivalents at end of period $135 $1,089 $1,205 $1,559
Disclosure of cash flow information
Cash paid during the year for income taxes $40 $8 $50 $51
Cash paid during the year for interest expense $159 $35 $951 $6
13

15. Consolidated Balance Sheets
Successor
December 31, December 31,
(in millions) 2007 2006
Assets
Current assets
Cash and cash equivalents $135 $1,089
Receivables, less allowances of $23 in 2007 and $26 in 2006 721 573
Inventories 821 749
Restricted cash-disputed distribution reserve 33 85
Assets held for sale – current 53 –
Other current assets 89 56
Total current assets 1,852 2,552
Property, plant and equipment, net 2,772 2,521
Goodwill 1,174 1,313
Intangible assets 1,210 1,298
Deferred income taxes 487 549
Assets held for sale – non-current 178 –
Other non-current assets 199 237
Total assets $7,872 $8,470
Liabilities and stockholders’ equity
Current Liabilities
Accounts payable and accrued liabilities $1,137 $1,081
Accrued interest 12 39
Short-term debt 47 1,401
Long-term debt – current portion 10 39
Liabilities held for sale – current 40 –
Total current liabilities $1,246 $2,560
Long-term debt, net of current portion 1,993 1,296
Pension plan liability 146 312
Other employee benefits liability 293 325
Liabilities held for sale – non-current 8 –
Other liabilities 161 247
Commitments and contingencies
Minority interest 37 44
Stockholders’ equity
Preferred stock, par value $0.01 per share 10 million shares
authorized; none issued or outstanding at December 31, 2007
– –
and December 31, 2006
Common stock, par value $0.01 per share
400 million shares authorized; 130.8 million issued and outstanding
at December 31, 2007 and December 31, 2006 1 1
Additional paid in capital 3,783 3,733
Accumulated earnings (deficit) 31 (65)
Accumulated other comprehensive earnings 173 17
Total stockholders’ equity 3,988 3,686
Total liabilities and stockholders’ equity $7,872 $8,470
14

16. Five-Year Reconciliation of EARNINGS (LOSS) TO ADJUSTED EBIT
Successor Combined
Twelve months ended Twelve months ended
December 31, December 31,
(in millions) 2007 2006
Net sales $4,978 $5,399
Cost of sales 4,201 4,397
Gross margin 777 1,002
Operating expenses
Marketing and administrative expenses 498 494
Science and technology expenses 63 78
Restructure costs 28 32
Chapter 11 related reorganization items 55
–
Provision (credit) for asbestos litigation claims (13)
–
Employee emergence equity program 37 6
(Gain) loss on sale of fixed assets and other 6 (57)
Total operating expenses 632 595
Earnings (loss) from continuing operations before interest and taxes 145 407
Interest expense, net 122
Gain on settlement of liabilities subject to compromise –
Fresh-start accounting adjustments –
Earnings (loss) from continuing operations before taxes 23
Income tax expense (benefit) (8)
Minority interest and equity in net earnings (loss) of affiliates (4)
Earnings (loss) from continuing operations 27
Earnings (loss) from discontinued operations, net of tax 9
Gain on sale of discontinued operations, net of tax 60
Net earnings (loss) $96
Reconciliation to adjusted earnings from continuing operations
before interest and taxes
Net earnings (loss) $96
Earnings (loss) from discontinued operations, net of tax 9
Gain on sale of discontinued operations, net of tax 60
Earnings (loss) from continuing operations 27
Minority interest and equity in net earnings (loss) of affiliates (4)
Earnings (loss) from continuing operations before minority interest
31
and equity in net earnings (loss) of affiliates
Income tax expense (benefit) (8)
Earnings (loss) from continuing operations before taxes 23
Interest expense, net 122
Gain on settlement of liabilities subject to compromise –
Fresh-start accounting adjustments –
Earnings (loss) from continuing operations before interest and taxes 145 407
Adjustments to remove items impacting comparability:
Chapter 11 related reorganization costs 55
–
Provision (credit) for asbestos litigation claims (13)
–
Restructuring and other costs (credits) 54 (2)
Impact of acquisition accounting 28 13
Acquisition, integration and transaction costs 13 –
(Gains) losses on sales of assets and other 7 –
Employee emergence equity program expense 37 6
Fresh-start accounting impact 63
–
Asset impairments 60 –
Total adjustments to remove comparability items 199 122
Adjusted earnings from continuing operations before interest and taxes $344 $529
15

17. Predecessor
Successor
Two months ended Ten months ended Twelve months ended Twelve months ended Twelve months ended
December 31, October 31, December 31, December 31, December 31,
2006 2006 2005 2004 2003
$772 $4,627 $5,177 $4,626 $4,061
656 3,741 4,107 3,698 3,304
116 886 1,070 928 757
86 408 521 497 425
30 48 56 44 41
20 12 (2)
– –
10 45 45 54 85
(13) 4,267 (24) (5)
–
6 – – – –
8 (65) (18) (9) (16)
160 435 4,871 562 528
(44) 451 (3,801) 366 229
29 241 740 (12) 8
(5,864)
– – – –
(2,919)
– – – –
(73) 8,993 (4,541) 378 221
(23) 980 (411) 202 131
(4) (4) (8) 1
–
(54) 8,013 (4,134) 168 91
(11) 127 35 36 24
– – – – –
$(65) $8,140 $(4,099) $204 $115
$(65) $8,140 $(4,099) $204 $115
(11) 127 35 36 24
– – – – –
(54) 8,013 (4,134) 168 91
(4) (4) (8) 1
–
(50) 8,013 (4,130) 176 90
(23) 980 (411) 202 131
(73) 8,993 (4,541) 378 221
29 241 740 (12) 8
(5,864)
– – – –
(2,919)
– – – –
(44) 451 (3,801) 366 229
10 45 45 54 85
(13) 4,267 (24) (5)
–
32 11 (18) (5) (1)
6 7 – – –
– – –
– –
(45) (7) – –
–
6 – – –
–
63 – – –
–
– – –
– –
117 5 4,287 25 79
$73 $456 $486 $391 $308
16

18. Business Segment Information
Successor Predecessor
Twelve Months Two Months Ten Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, October 31, December 31,
(in millions) 2007 2006 2006 2005
Net sales
Reportable segments
Insulating Systems $1,776 $331 $1,766 $1,976
Roofing and Asphalt 1,375 167 1,556 1,806
Other Building Materials and Services 301 60 317 318
Composite Solutions 1,695 227 1,155 1,265
Total reportable segments 5,147 785 4,794 5,365
Corporate Eliminations (1) (169) (13) (167) (188)
Consolidated net sales $4,978 $772 $4,627 $5,177
External Customer Sales by Geographic Region
United States $3,445 $541 $3,648 $4,171
Europe 601 84 358 399
Canada and other 932 147 621 607
Net sales $4,978 $772 $4,627 $5,177
Earnings (loss) from continuing operations
before interest and taxes
Reportable Segments
Composite Solutions $126 $37 $72 $114
Insulating Systems 192 59 408 424
Roofing and Asphalt 27 (23) 95 139
Other Building Materials and Services 14 (1) 2 3
Total reportable segments $359 $72 $577 $680
Reconciliation to Consolidated Earnings
(Loss) From Continuing Operations
Before Interest and Taxes
Chapter 11-related reorganization items – $(10) $(45) $(45)
Asbestos litigation (claims) recoveries – – 13 (4,267)
Restructuring and other (costs) credits (54) (32) (11) 18
Impact of acquisition accounting (13) – – –
Acquisition integration and transaction costs (28) (6) (7) –
Gains (losses) on sales of assets and other (7) – 45 7
Employee emergence equity program expense (37) (6) – –
Fresh-start accounting impact – (63) – –
Asset impairments (60) – – –
General corporate expense (15) 1 (121) (194)
Consolidated earnings (loss) from continuing $145 $(44) $451 $(3,801)
operations before interest and taxes
17

19. BOARD OF DIRECTORS
NORMAN P. BLAKE, JR. (66) DAVID J. LYON (35)
Former Chairman, President and Chief Executive Vice President at D. E. Shaw & Co., L.P. Former Managing
Officer of Comdisco, Inc. and served as the chief Director at The Cypress Group, LLC. Director since 2008.
executive of several other major companies. Awarded
the Ellis Island Medal of Honor. Director since 1992. JAMES J. MCMONAGLE (63)
Of Counsel at Vorys, Sater, Seymour & Pease LLP.
GASTON CAPERTON (68) Serves as a Director and Chairman for the Board
President and Chief Executive Officer of The College of Selected Family Funds. Director since 2007.
Board. Former Governor of the State of West Virginia.
Serves as a Director of United Bankshares, Inc., Energy W. HOWARD MORRIS (47)
Corporation of America, and Prudential Financial. Chief Investment Officer of Prairie & Tireman Capital
Director since 1997. Management. Former Vice President and Senior Portfolio
Manager of Comerica Asset Management. Director
WILLIAM W. COLVILLE (73) since 2007.
Retired, former Senior Vice President,
General Counsel and Secretary of Owens Corning. JOSEPH F. NEELY (67)
Serves as a Director of Nordson Corporation. Former Chief Executive Officer of GoldToe Brands, Inc.
Director since 1995. Served as Senior Vice President of Sara Lee Corporation.
Director since 2006.
RALPH F. HAKE (59)
Former Chairman and Chief Executive Officer of W. ANN REYNOLDS (70)
the Maytag Corporation. Served as a Director for the Former President and Professor of Biology at The University
National Association of Manufacturers and is a current of Alabama at Birmingham. Serves as a Director of Humana,
Director of ITT Corporation. Director since 2006. Inc., Abbott Laboratories, Invitrogen Corporation and the
News-Gazette, Champaign, Illinois. Director since 1993.
F. PHILIP HANDY (63)
Chief Executive Officer of Strategic Industries. ROBERT B. SMITH, JR. (70)
Serves as a Director of Anixter International, Inc., Director of Virginia Environmental Endowment.
and Rewards Network, Inc. Director since 2006. Member of Board of Managers of Kentucky River
Properties. Formerly, Trustee of Dalkon Shield Claimants
LANDON HILLIARD (68) Trust, and Chief Counsel and Staff Director U.S. Senate
Partner with Brown Brothers Government Operations Committee. Director since 2004.
Harriman & Co. Serves as a Director of
Norfolk Southern Corporation, Western MICHAEL H. THAMAN (44)
World Insurance Company and Russell Chairman and Chief Executive Officer of Owens Corning.
Reynolds Associates, Inc. Director since 1989. Served as Chairman since 2002 and Chief Financial Officer
from 2000-2006. Serves as a Director of Florida Power &
ANN IVERSON (64) Light Group, Inc. Director since 2002.
Chief Executive Officer of International Link. Serves
as a Director of Shoe Pavillion. Former Chief Executive DANIEL K. TSEUNG (36)
Officer of Laura Ashley Holdings, Kay-Bee Toy stores Managing Director of Sun Hung Kai Properties Direct
and Mothercare plc. Awarded the Ellis Island Medal Investments Ltd. Serves as a Director of RCN Corporation
of Honor. Director since 1996. and Chinacast Education Corporation. Director since 2006.
CORPORATE OFFICERS
• Michael H. Thaman, Chairman of the Board & Chief Executive Officer
• Duncan Palmer, Chief Financial Officer
• Joseph High, Senior Vice President, Human Resources
• David Johns, Senior Vice President, Chief Information & Supply Chain Officer Governance and
Nominating committee
• Stephen Krull, Senior Vice President, General Counsel & Secretary
• Sheree Bargabos, President, Roofing and Asphalt
• Chuck Dana, President, Composite Solutions
• Roy Dean, President, Insulating Systems
• Bill LeBaron, President, Owens Corning Construction Services
• Chuck Stein, President, Masonry Products & Chief Marketing Officer, Building Materials
• Scott Deitz, Vice President, Investor Relations & Corporate Communications
• John Hillenbrand, Vice President & Chief Innovation Officer
• Frank O’Brien-Bernini, Vice President & Chief Sustainability Officer
• Mark Mayer, Vice President & Chief Accounting Officer 18

20. OWENS CORNING
ONE OWENS CORNING PARKWAY
TOLEDO, OHIO, USA 43659
1-800- GET-PINK TM
www.owenscorning.com
Pub. No.10009997. Printed in U.S.A. August 2008.
THE PINK PANTHER™ & © 1964 – 2008 Metro-Goldwyn-Mayer
Studios Inc. All Rights Reserved. The color PINK is a registered
trademark of Owens Corning. © 2008 Owens Corning.