American Standard Companies Reports Third-Quarter Results

- Delivers record third-quarter sales, up 7.7 percent in Air Conditioning Systems and Services






PISCATAWAY, N.J., Oct. 18  /PRNewswire-FirstCall/ -- American Standard Companies Inc. (NYSE:ASD) today announced third-quarter income from continuing operations (Trane Air Conditioning Systems and Services) of 63 cents per diluted share, up 5 percent from a year ago.  Adjusted income from continuing operations was 65 cents per diluted share, up 8 percent from a year ago.  Sales from continuing operations were $1.982 billion, up 7.7 percent.

In accordance with Generally Accepted Accounting Principles (GAAP), both WABCO and Bath and Kitchen are classified as discontinued operations.

The company generated $201.1 million in net cash provided by operating activities and $130.4 million in free cash flow.  During the quarter, the company paid a quarterly cash dividend of 16 cents per share of common stock and repurchased 12.7 million shares of its common stock.

  THIRD-QUARTER EARNINGS SUMMARY

                                          3Q07        3Q06      % change
  GAAP income per diluted share
  Continuing operations (Trane Air
   Conditioning Systems and Services)   63 cents    60 cents      5.0%

  Adjusted income per diluted share
  Continuing operations (Trane Air
   Conditioning Systems and Services)   65 cents    60 cents      8.3%

  (Please see the financial tables following the news release text for
  reconciliation tables and a description of adjusted results for continuing
  operations.  The company provides adjusted results to facilitate
  understanding of ongoing financial performance from year to year.)




"We delivered a good third quarter, driven by strength in the commercial part of our air conditioning business," said Fred Poses, chairman and CEO. "It more than offset weakness in the residential part of our business.  We're particularly pleased with the continued growth in global commercial parts, services and solutions that represented 30 percent of our business during the quarter.

"During the quarter, we completed major steps in our separation plans announced on February 1.  On July 23, we announced a definitive agreement to sell the company's worldwide Bath and Kitchen business to funds advised by Bain Capital Partners, LLC, a leading global private investment firm.  We expect to complete the sale on or about October 31.  On July 31, we spun off our Vehicle Control Systems business as a publicly traded company known as WABCO (NYSE:WBC), ahead of the original early fall timetable.  We also received shareowner approval to rename the company as Trane and will do so in the near future," said Poses.

FULL-YEAR PERFORMANCE ESTIMATE

"For the rest of the year, we see continued strength in commercial air conditioning equipment systems, parts, services and solutions with better- than-expected performance," said Poses.  "Job quotes, orders and backlog are expected to grow well, although not as fast as earlier in the year.  Strong performance in the commercial part of our air conditioning business should lessen the impact of the weaker residential housing market and warranty costs discussed last quarter.  As a result, we're projecting $35 million lower segment income compared with our July estimate, which equates to about 12 cents a share.  On that basis, we now expect full-year GAAP income from continuing operations of $1.89-$1.94 per diluted share (up modestly) and adjusted income from continuing operations of $1.90-$1.95 per diluted share (up 10-13 percent).

"For 2007, we expect to generate about $790 million in net cash provided by operating activities and about $530 million in free cash flow.  We expect to use the proceeds from the sale of the Bath and Kitchen business primarily to repurchase common stock and reduce debt to keep the company at investment- grade standards," said Poses.

"We'll discuss our performance estimates in greater detail on today's conference call," said Poses.  "As usual, we'll provide 2008 guidance in January and in greater detail at our February meeting for investors and analysts."

THIRD-QUARTER 2007 PERFORMANCE HIGHLIGHTS

AIR CONDITIONING SYSTEMS AND SERVICES sales growth resulted from higher volumes and pricing of commercial equipment, parts, services and solutions, which more than offset lower sales in the residential part of the air conditioning business.  Segment income was $260.3 million, up 5.1 percent from $247.6 million in 2006, as commercial volume and pricing as well as materials productivity more than offset the continuing impact of higher commodity costs, lower volume of residential sales, labor and benefits cost escalations and warranty costs discussed last quarter.  Adjusted segment income, which excludes the impact of operational consolidation expenses and foreign exchange effects, was $257.6 million, up from $248.0 million in third quarter 2006.

During the quarter, the U.S. Environmental Protection Agency (EPA) selected Trane CenTraVac(TM) from the field of past Strategic Ozone Protection Award winners to receive its "Best-of-the-Best" award.  The 15 SEER (Seasonal Energy Efficiency Ratio) Precedent received the 2007 HVAC "Product of the Year" from Consulting & Specifying Engineer magazine.  Trane also received the J.D. Power and Associates award for "highest contractor satisfaction" among residential and light commercial contractors.  Ferguson Heating and Cooling became the new independent wholesale distributor for Trane residential systems in California and Nevada, expanding Trane's stocking locations from four to 16 as well as adding a central distribution center.  To support the new Trane XV95, the industry's highest efficiency gas furnace, the company launched an integrated marketing program, including television, radio and Internet media.

Large contracts signed during the quarter included ones for ASUS Personal Computer (Suzhou, China); Bank of China tower two (Hong Kong, China); Center of Begovaya (Moscow, Russia); Cerritos College (Cerritos, Calif.); Clear Creek Independent School District (Houston, Texas); Franklin Middle School (Franklin, Tenn.); Gateway Office Building (Budapest, Hungary); Hynix Chungjoo (Chungjoo, South Korea); LVE Energy Partners' Central Energy Center (Las Vegas, Nev.); Powerchip Semiconductor Corporation (Xinzhu, Taiwan); Sobrato Development Companies (Santa Clara, Calif.): St. Luke Medical Center (Manila, Philippines); Taipei railroad station (Taipei, Taiwan); Technical Schools, Ministry of Education (Arar, Hail and Riyadh, Saudi Arabia); Temple University (Philadelphia, Pa.); Weber State University  (Ogden, Utah); Winstar Casino (Thackerville, Okla.); Woodstock High School (Woodstock, Ill.); and World Trade Center phase III (Beijing, China).

PLEASE NOTE: American Standard Chairman and CEO Frederic Poses and CFO Peter D'Aloia will discuss the company's performance and provide estimates on a two-way conference call for financial analysts at 9 a.m. EDT today. Related financial charts, reconciliations between GAAP and non-GAAP financial measures, and certain other information to be discussed on the conference call are available in the accompanying financial tables and under the heading, "American Standard's Third-Quarter 2007 Results" on the company's Web site, http://www.americanstandard.com/. Reporters and the public are invited to listen to the call, which will be broadcast on the Web site and archived for one year. If you're unable to connect to the company's Web site, you may listen via telephone. The dial-in number is [phone].

Please call five-to-10 minutes before the scheduled start time. The number of telephone connections is limited. A replay of the conference call will be available from 1 p.m. EDT today until 11:59 p.m. EDT on Oct. 25. For the replay, please dial [phone]. The replay access code is 3839540.

Comments in this news release, particularly those related to earnings guidance, contain certain forward-looking statements, which are based on management's good faith expectations and beliefs concerning future developments. Forward-looking statements can be identified by the use of words such as "believe," "expect," "plans," "strategy," "prospects," "estimate," "project," "anticipate," "intends" and other words of similar meaning. Actual results may differ materially from these expectations as a result of many factors including (i) pricing changes to materials used to produce products and the ability to offset those changes through price increases; (ii) changes in U.S. or international economic conditions, such as inflation and interest rate and exchange rate fluctuations; (iii) the actual level of construction activity in the company's end-markets; (iv) periodic adjustments to accruals for contingent liabilities, including accruals associated with litigation matters, government investigations, asbestos liabilities and asbestos insurance recoveries; and (v) the amount and timing of operational consolidation expenses and gains or losses on asset sales and tax items. In addition, there are risks and uncertainties relating to the sale of our Bath and Kitchen business, including the timing and certainty of the completion of the transaction.

Additional factors that could cause actual results to differ materially from expectations are set forth in the company's 2006 Annual Report on Form 10-K, in the "Management's Discussion and Analysis" section of the company's Quarterly Reports on Form 10-Q.  American Standard does not undertake any obligation to update such forward-looking statements. To facilitate understanding of third-quarter results, several tables follow this news release. Segment income, adjusted income, adjusted income per diluted share and free cash flow are non-GAAP financial measures that exclude operational consolidation expenses, gains on sale of assets, tax items, foreign exchange translation and separation costs.  These measures should be considered in addition to, not as a substitute for, GAAP measures. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the company's business. In addition, the company uses segment income to make strategic and capital investment decisions, allocate resources and report business performance to the board of directors. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees.

On Feb. 1, American Standard Companies announced plans to separate its three businesses.  Since then, the company completed the spinoff of its Vehicle Control Systems business as an independent company known as WABCO (NYSE:WBC).  The company also agreed to sell its Bath and Kitchen business to funds advised by Bain Capital Partners, LLC, and expects to complete the sale on or about Oct. 31.  To reflect its focus on the Air Conditioning Systems and Services business, the company plans to change its name to Trane.  In 2006, Air Conditioning Systems and Services, sold under the Trane(R) and American Standard(R) brands, generated revenues of $6.8 billion with 29,000 employees.

  For more information, reporters may contact:
  Skip Colcord, [phone], ,
  or Shelly London, [phone], .

  For more information, investors and financial analysts may contact:
  Bruce Fisher, [phone], .

  Additional information is available at http://www.americanstandard.com/.

  Copyright (C) 2007 American Standard Companies Inc.



                     American Standard Companies Inc.
                         Statement of Operations
                               (Unaudited)

  In millions                        Three Months Ended  Nine Months Ended
  except per share data                 September 30,       September 30,
                                       2007      2006      2007      2006

  Sales                              $1,982.0  $1,840.0  $5,627.2  $5,161.9

  Costs and expenses
   Cost of sales                      1,404.7   1,303.9   3,986.4   3,649.7
   Selling and administrative expenses  348.6     329.8   1,040.8     970.8
   Other (income) expense                 3.7      (0.4)      2.8       7.9
   Interest expense                      30.5      27.9      83.8      87.3
                                      1,787.5   1,661.2   5,113.8   4,715.7

  Income from continuing operations,
   before income taxes                  194.5     178.8     513.4     446.2

  Income taxes                           65.3      55.7     175.8     134.7

  Income from continuing operations     129.2     123.1     337.6     311.5

  Income (loss) from discontinued
   operations                           (67.3)     27.8      73.6     115.2

  Net income                            $61.9    $150.9    $411.2    $426.7

  Net income per share:
   Basic
     Income from continuing operations  $0.65     $0.62     $1.68     $1.54
     Income (loss) from discontinued
      operations                        (0.34)     0.14      0.37      0.57
     Net Income                         $0.31     $0.76     $2.05     $2.11

   Diluted
     Income from continuing operations  $0.63     $0.60     $1.63     $1.51
     Income (loss) from discontinued
      operations                        (0.33)     0.14      0.36      0.55
     Net income                         $0.30     $0.74     $1.99     $2.06

  Average common shares outstanding
   Basic                                199.5     199.8     201.0     202.4
   Diluted                              204.5     204.2     206.5     206.9



  Reconciliation of Income from Continuing Operations to Adjusted Income
           from Continuing Operations per Diluted Common Share

                                       Three Months Ended  Nine Months Ended
                                           September 30,     September 30,
                                          2007     2006     2007     2006

  Income from continuing operations      $129.2   $123.1   $337.6   $311.6

  Adjustments:
  Operational consolidation expenses,
   net of tax                               1.0      0.4      1.9      0.5
  Tax items                                 1.8     (1.4)     1.5     (7.8)
  Adjusted income from continuing
   operations                            $132.0   $122.1   $341.0   $304.3

  Adjusted income from continuing
   operations per diluted common share    $0.65    $0.60    $1.65    $1.47


  Note:  The presentation of adjusted income from continuing operations and
  adjusted income from continuing operations per diluted common share is not
  in conformity with generally accepted accounting principles (GAAP).  These
  measures may not be comparable to similar measures of other companies as
  not all companies calculate these measures in the same manner.



                     American Standard Companies Inc.
                Reconciliation of Statement of Operations
                               (Unaudited)
  In millions
                                      Three Months Ended September 30, 2007
                                                                Pre Disc Ops
                                     Reported  Reclassifications  Reporting

  Sales                              $1,982.0        $        -    $1,982.0
  Cost of sales                       1,404.7              (5.2)    1,399.5
  Selling and administrative expenses   348.6             (30.4)      318.2
  Other expense                           3.7               0.3         4.0
  Segment income                          -                   -       260.3
  Interest expense                       30.5                 -        30.5
  Equity income                           -                (2.5)       (2.5)
  Corporate and other expenses            -                37.8        37.8
  Income from continuing operations,    194.5                         194.5
   before income taxes
  Income taxes                           65.3                          65.3
  Income from continuing operations     129.2                         129.2
  Loss from discontinued operations     (67.3)                        (67.3)
  Net income                            $61.9                         $61.9



                     American Standard Companies Inc.
                Reconciliation of Statement of Operations
                               (Unaudited)
  In millions
                                      Three Months Ended September 30, 2006
                                                                Pre Disc Ops
                                     Reported  Reclassifications  Reporting

  Sales                              $1,840.0        $        -    $1,840.0
  Cost of sales                       1,303.9             (10.1)    1,293.8
  Selling and administrative expenses   329.8             (38.4)      291.4
  Other (income) expense                 (0.4)              7.6         7.2
  Segment income                            -                 -       247.6
  Interest expense                       27.9                 -        27.9
  Equity income                             -              (2.2)       (2.2)
  Corporate and other expenses              -              43.1        43.1
  Income from continuing operations,    178.8                         178.8
   before income taxes
  Income taxes                           55.7                          55.7
  Income from continuing operations     123.1                         123.1
  Income from discontinued operations    27.8                          27.8
  Net income                           $150.9                        $150.9


  Note: The presentation of segment income is not in conformity with
  generally accepted accounting principles (GAAP).  Management continues to
  use segment income to assess the performance of continuing operations.



                     American Standard Companies Inc.
                Reconciliation of Statement of Operations
                               (Unaudited)
  In millions
                                       Nine Months Ended September 30, 2007
                                                                Pre Disc Ops
                                     Reported  Reclassifications  Reporting

  Sales                              $5,627.2        $        -    $5,627.2
  Cost of sales                       3,986.4              11.2     3,997.6
  Selling and administrative expenses 1,040.8            (104.1)      936.7
  Other (income) expense                  2.8             (16.4)      (13.6)
  Segment income                            -                 -       706.5
  Interest expense                       83.8                 -        83.8
  Equity income                             -              (8.2)       (8.2)
  Corporate and other expenses              -             117.5       117.5
  Income from continuing operations,    513.4                         513.4
   before income taxes
  Income taxes                          175.8                         175.8
  Income from continuing operations     337.6                         337.6
  Income from discontinued operations    73.6                          73.6
  Net income                           $411.2                        $411.2



                     American Standard Companies Inc.
                Reconciliation of Statement of Operations
                               (Unaudited)
  In millions
                                       Nine Months Ended September 30, 2006
                                                                Pre Disc Ops
                                     Reported  Reclassifications  Reporting

  Sales                              $5,161.9                 -    $5,161.9
  Cost of sales                       3,649.7               3.7     3,653.4
  Selling and administrative expenses   970.8            (114.3)      856.5
  Other (income) expense                  7.9             (12.4)       (4.5)
  Segment income                          -                   -       656.5
  Interest expense                       87.3                 -        87.3
  Equity income                           -                (7.5)       (7.5)
  Corporate and other expenses            -               130.5       130.5
  Income from continuing operations,    446.2                         446.2
   before income taxes
  Income taxes                          134.7                         134.7
  Income from continuing operations     311.5                         311.5
  Income from discontinued operations   115.2                         115.2
  Net income                           $426.7                        $426.7


  Note: The presentation of segment income is not in conformity with
  generally accepted accounting principles (GAAP).  Management continues to
  use segment income to assess the performance of continuing operations.



                     American Standard Companies Inc.
                          Data Supplement Sheet
                               (Unaudited)

    In millions                      Three Months Ended September 30,
                                 Reported  Reported   % Chg   % Chg vs.2006
                                   2007      2006    vs. 2006   Adjusted(1)
    Air Conditioning Systems and
     Services
       Sales                     $1,982.0  $1,840.0     7.7%         6.3%
       Segment Income (2)          $260.3    $247.6     5.1%         3.9%
       Segment Income as a
        Percentage of Sales         13.1%     13.5%  -0.4pts     -0.5 pts
       Income from Continuing
        Operations Before Income
        Taxes                      $194.5    $178.8     8.8%
       Income from Continuing
        Operations Before Income
        Taxes as a Percentage
         of Sales                    9.8%      9.7%
       Backlog                     $957.9    $982.3    -2.5%        -5.1%


    Segment Income Reconciliation    2007      2006

    Reported                       $260.3    $247.6
     Operational Consolidation
      Expenses                        0.5       0.4
    Subtotal                        260.8     248.0
     Foreign Exchange Translational
      Effects                        (3.2)       -
    Adjusted Segment Income        $257.6    $248.0



    In millions                       Nine Months Ended September 30,
                                 Reported  Reported   % Chg   % Chg vs.2006
                                   2007      2006    vs. 2006   Adjusted(1)
    Air Conditioning Systems and
     Services
       Sales                     $5,627.2  $5,161.9      9.0%        7.8%
       Segment Income (2)          $706.5    $656.5      7.6%        6.9%
       Segment Income as a
        Percentage of Sales         12.6%     12.7%  -0.1 pts    -0.2 pts
       Income from Continuing
        Operations Before Income
         Taxes                     $513.4    $446.2
       Income from Continuing
        Operations Before Income
        Taxes as a Percentage of
        Sales                        9.1%      8.6%
       Backlog                     $957.9    $982.3     -2.5%       -5.1%


    Segment Income Reconciliation   2007      2006

    Reported                       $706.5    $656.5
     Operational Consolidation
      Expenses                        1.5        -
    Subtotal                        708.0     656.5
     Foreign Exchange Translational
      Effects                        (6.5)       -
    Adjusted Segment Income        $701.5    $656.5


  (1) Excluding the impact of foreign exchange translational effects and
  operational consolidation expenses is not in conformity with generally
  accepted accounting principles (GAAP).  Changes in sales and segment
  income excluding foreign exchange effects are calculated using current
  year sales and segment income translated at prior year exchange rates.

  (2) See Reconciliation of Statement of Operations for a reconciliation of
  segment income to income from continuing operations before income taxes.
  In addition, see table above for presentation of income from continuing
  operations before income taxes as a percentage of sales.



                        American Standard Companies Inc.
      Reconciliation of Net Income to Adjusted Net Income and Adjusted Net
                        Income per Diluted Common Share
                                  (Unaudited)
  In millions
  except per share data
                                            Three Months Ended September 30,
                                                  2007        Diluted EPS

   Net income and diluted earnings per share     $61.9           $0.30
   Adjustments:
   Operational consolidation expenses,
    net of tax                                    28.4            0.14
   Tax items                                       2.3            0.01
   Separation costs, net of tax and separation
    related taxes                                 78.6            0.39
   Adjustment to include depreciation and
    amortization of discontinued operations,
    net of tax (1)                               (14.7)          (0.07)
   Adjusted net income and diluted earnings per
    share                                       $156.5           $0.77
   Diluted common shares                         204.5           204.5



                                           Three Months Ended September 30,
                                                 2006        Diluted EPS

   Net income and diluted earnings per share   $150.9           $0.74
   Adjustments:
   Operational consolidation expenses,
    net of tax                                   20.2            0.10
   Tax items                                     (3.9)          (0.02)
   Adjusted net income and diluted earnings per
    share                                      $167.2           $0.82
   Diluted common shares                        204.2           204.2


  (1) Assets are not depreciated or amortized once a business is
  classified as a discontinued operation.  As a result of the decision to
  sell Bath and Kitchen, the GAAP results exclude Bath and Kitchen
  depreciation and amortization.  Adjusted results include Bath and Kitchen
  depreciation and amortization.  The Company provides adjusted results to
  facilitate understanding of ongoing financial performance.

  Note:  The presentation of adjusted net income and adjusted net income per
  diluted common share is not in conformity with generally accepted
  accounting principles (GAAP).  These measures may not be comparable to
  similar measures of other companies as not all companies calculate these
  measures in the same manner.



                     American Standard Companies Inc.
                  2007 Earnings Per Share Reconciliation
                               (Unaudited)
  In millions
  except per share data                                  FY 2007

  Income From Continuing Operations - Reported      $385.4 - $395.3
  Streamlining Expenses, net of tax                             2.2
  Tax Items                                                    (0.5)
  Income From Continuing Operations - Adjusted      $387.1 - $397.0
  Diluted Earnings Per Share
     Continuing Operations - Reported                 $1.89 - $1.94
     Continuing Operations - Adjusted                 $1.90 - $1.95
     Diluted Shares                                           204.1


                         2006 Earnings Per Share
                              Reconciliation
                               (Unaudited)

                                                          FY 2006

  Income From Continuing Operations - Reported              $385.9
  Streamlining Expenses, net of tax                            1.4
  Gain on Sale of Assets, net of tax                         (10.3)
  Tax Items                                                  (19.9)
  Income From Continuing Operations - Adjusted              $357.1
  Diluted Earnings Per Share
     Continuing Operations - Reported                        $1.87
     Continuing Operations - Adjusted                        $1.73

     Diluted Shares                                          206.3

  Note:  The presentation of adjusted income from continuing operations and
  adjusted income from continuing operations per diluted common share is not
  in conformity with generally accepted accounting principles (GAAP). These
  measures may not be comparable to similar measures of other companies as
  not all companies calculate these measures in the same manner.



                    American Standard Companies, Inc.
                   Condensed Consolidated Balance Sheet
                               (Unaudited)
  (dollars in millions)
                                            September 30,      December 31,
                                                2007              2006
  Current Assets:
   Cash and cash equivalents                    $316.2            $232.9
   Accounts receivable, less allowance
    for doubtful accounts:
    Sept. 2007 - $41.2;  Dec. 2006 - $38.3     1,236.2             930.3
   Inventories                                   763.0             691.9
   Other current assets                          312.4             389.9
   Assets held for sale - Bath &
    Kitchen                                    2,477.5           2,162.7
   Discontinued operations - Wabco                 -             1,234.4
  Total Current Assets                         5,105.3           5,642.1

  Facilities, less accumulated depreciation:
   Sept. 2007 - $302.5;  Dec. 2006 - $244.4      794.3             758.7
  Goodwill and other assets                    1,136.7           1,012.3
    Total Assets                              $7,036.3          $7,413.1

  Current Liabilities:
   Short-term debt                               $31.6            $100.6
   Accounts payable                              707.4             549.7
   Accrued and other current liabilities       1,075.7             977.7
   Liabilities related to assets held for
    sale - Bath & Kitchen                        862.4             855.9
   Discontinued operations - Wabco                 -               927.4
  Total Current Liabilities                    2,677.1           3,411.3

  Long-Term Debt                               2,231.2           1,543.4

  Other Liabilities                            1,637.1           1,534.9
    Total Liabilities                          6,545.4           6,489.6

  Shareholders' Equity                           490.9             923.5
    Total Liabilities & Shareholders' Equity  $7,036.3          $7,413.1



                     American Standard Companies Inc.
                   Reconciliation of Net Cash Provided
                By Operating Activities to Free Cash Flow
                               (Unaudited)

  In millions                               Three Months Ended September 30,
                                                    2007         2006

  Cash provided by operating activities:(1)
   Net Income                                      $61.9       $150.9
   Adjustments to reconcile net income to
    net cash provided by operating activities      139.2        119.5

  Net cash provided by operating
   activities (2)                                  201.1        270.4

  Other deductions or additions to reconcile
   to Free Cash Flow:
   Purchases of property, plant, equipment and
    computer software                              (70.7)       (59.9)
   Proceeds from disposals of property               -            0.8

  Free cash flow (2)                              $130.4       $211.3


  (1) Includes continuing and discontinued operations

  (2) Excludes separation activities related to terminating accounts
  receivable securitization program, separation costs, proceeds from the
  disposition of businesses, and separation related tax liability payments.

  Note:  This statement reconciles net cash provided by operating
  activities to free cash flow.  Management uses free cash flow, which is
  not defined by US GAAP, to measure the Company's operating performance.
  Free cash flow is also one of several measures used to determine
  incentive compensation for certain employees.


                     American Standard Companies Inc.
                   Reconciliation of Net Cash Provided
                By Operating Activities to Free Cash Flow
                               (Unaudited)

  In millions                               Nine Months Ended September 30,
                                                   2007         2006
  Cash provided by operating activities: (1)
   Net Income                                    $411.2       $426.7
   Adjustments to reconcile net income to
    net cash provided by operating activities     122.6         (3.1)

  Net cash provided by operating
   activities (2)                                 533.8        423.6

  Other deductions or additions to reconcile
   to Free Cash Flow:
   Purchases of property, plant, equipment and
    computer software                            (191.4)      (166.2)
   Proceeds from disposals of property              -           16.0

  Free cash flow (2)                             $342.4       $273.4


  (1) Includes continuing and discontinued operations

  (2) Excludes proceeds from the sale of the Venesta Washroom Systems
  business, net of accelerated pension contributions ($138.3M), separation
  activities related to terminating accounts receivable securitization
  program ($408.4M), separation costs as well as separation related tax
  payments ($38.1M), and proceeds from the disposition of a business
  ($6.8M). Includes $64.9M receipt of cash from a trust related to an
  insurance settlement.

  Note:  This statement reconciles net cash provided by operating
  activities to free cash flow.  Management uses free cash flow, which is
  not defined by US GAAP, to measure the Company's operating performance.
  Free cash flow is also one of several measures used to determine
  incentive compensation for certain employees.



                     American Standard Companies Inc.
                  Reconciliation of Net Cash Provided By
                  Operating Activities to Free Cash Flow
                               (Unaudited)

  In millions                               Twelve Months Ended December 31,
                                                 2007 Estimate       2006

  Net cash provided by operating activities (1)  $ Approx. 633.0   $706.3

  Other deductions or additions to reconcile
   to Free Cash Flow:
   Purchases of property, plant, equipment and
    computer software                              Approx.(275.0)  (285.1)
   Proceeds from disposals of property                     172.0     20.6
  Free cash flow (2)                             $ Approx. 530.0   $441.8


  (1)Includes continuing and discontinued operations

  (2)Excludes separation activities related to terminating accounts
     receivable securitization program, separation costs as well as
     accelerated pension contributions and proceeds from the disposition
     of a business.  Includes receipt of cash from a trust related to an
     insurance settlement.


  Note:  This statement reconciles net cash provided by operating activities
  to free cash flow.  Management uses free cash flow, which is not defined
  by US GAAP, to measure the Company's operating performance.  Free cash
  flow is also one of several measures used to determine incentive
  compensation for certain employees.


DATASOURCE: American Standard Companies Inc.



CONTACT:  Skip Colcord, [phone], ,

or Shelly London, [phone], ; investors and

financial analysts, Bruce Fisher, [phone],

, all of both of American Standard Companies Inc.



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

Copyright