SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549

                                  FORM 8-K

                               CURRENT REPORT
                   Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


                              January 13, 2003
              Date of Report (Date of earliest event reported)

                           CONGOLEUM CORPORATION
           (Exact name of registrant as specified in its charter)


                      Commission File Number: 1-13612


                  Delaware                           02-0398678
     (State or other jurisdiction of               (IRS Employer
               incorporation)                    Identification No.)



                           3500 Quakerbridge Road
                                 P.O. Box 3127
                     Mercerville, New Jersey 08619-0127
                  (Address of principal executive office)
     Registrant's telephone number, including area code: (609) 584-3000


                               Not Applicable
       (Former name or former address, if changed since last report)



Item 5: Other Events

On January 13, 2003, the Registrant issued a press release relating to its
strategy for resolving current and future asbestos claims liability. A copy
of the Registrant's press release dated January 13, 2003 is attached as
Exhibit 99.1 hereto and incorporated by reference herein.

Item 7: Financial Statements, Pro Forma Financial Information And Exhibits

(c) Exhibits.

        99.1 Press release dated January 13, 2003




                                 SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                                                     CONGOLEUM CORPORATION


Date:  January 14, 2003                              By /s/ Howard N. Feist III
                                                       -------------------------
                                                       Howard N. Feist III
                                                       Chief Financial Officer






                               Exhibit Index
                               -------------

Exhibit                         Description
Number

99.1                            Press Release dated January 13, 2003




                                                               EXHIBIT 99.1


FOR IMMEDIATE RELEASE

For Further Information:

Howard N. Feist
Chief Financial Officer
(609) 584-3586


        CONGOLEUM CORPORATION SEEKING TO RESOLVE ASBESTOS LIABILITY

MERCERVILLE, NJ, January 13, 2003 - Congoleum Corporation (AMEX:CGM) today
announced its strategy for resolving current and future asbestos claims
liability. The strategy involves negotiating a global settlement with
current asbestos plaintiffs. In furtherance of this strategy, Congoleum has
begun preliminary settlement negotiations with attorneys representing the
majority of plaintiffs with asbestos claims pending against Congoleum. Upon
successful completion of these negotiations, Congoleum intends to file a
prepackaged plan of reorganization under Chapter 11 of the United States
Bankruptcy Code. Congoleum intends to propose a plan under which its trade
creditors would not be adversely affected.

Roger S. Marcus, Chairman of the Board, commented "We believe this step is
a very positive move for Congoleum's future. Over the past several years,
there have been great improvements in Congoleum's product offering,
distribution, and manufacturing capability. Unfortunately, these
achievements have been overshadowed by the cloud of asbestos litigation
hanging over the company."

Congoleum expects that the plan of reorganization would provide for an
assignment of applicable Congoleum insurance to a trust that would fund
both the settlement of pending asbestos claims as well as future asbestos
claims, and that the plan would leave Congoleum's trade creditors
unimpaired and protect the company from any future asbestos-related
litigation. Unlike a conventional bankruptcy proceeding, a prepackaged
bankruptcy can significantly reduce the time and cost of the Chapter 11
process, resulting in a more predictable outcome for all constituents. Much
of the time consumed in a non-prepackaged bankruptcy proceeding is spent on
negotiations among various classes of creditors competing over how their
respective claims will be treated under a plan. By reaching an agreement in
advance of filing with the plaintiffs that leaves other classes of
creditors unimpaired, Congoleum expects that the post-filing process would
result in a swifter and less costly reorganization than would be the case
with a non-prepackaged bankruptcy.

Congoleum expects it would take from four to six months to negotiate a
prepackaged plan of reorganization, at which time it would file for
bankruptcy and request court approval of the plan. Congoleum expects it
would take another two to six months to have the plan confirmed and emerge
from the process. Upon filing, Congoleum intends to seek immediate court
approval to continue to pay all its pre-petition trade creditors in the
ordinary course of its business, and consistent with past practices.

Roger S. Marcus, Chairman of the Board, commented, "Because this process
now involves discussions with a wider circle, we felt it best to
communicate our strategy to assure our non-asbestos creditors, customers,
employees and other constituencies who might have concerns about the
asbestos issue and how it could affect them. We have worked hard to craft a
strategy that would resolve the asbestos problem without harm to our trade
creditors, customers, and employees, and we look forward to receiving their
full support throughout this process. We expect to operate on a `business
as usual' basis throughout this process. The net cash provided by operating
activities and the funds available under the existing credit facility
should be more than adequate to fund anticipated working capital
requirements, debt service and planned capital expenditures through this
process. We believe this settlement strategy of resolving our current and
future asbestos liabilities through a prepackaged bankruptcy is in the best
interests of the company, the claimants and the company's other
constituencies, and for that reason we are optimistic that it will succeed.
However, if a fair resolution cannot be reached, we are fully prepared to
utilize our insurance and other resources to return to the strategy of
vigorous defense that we have employed in the past."

 "We have seen tremendous momentum with the sales success of Ultima,
Prelude, and Durastone, all of which contributed to our top line growth in
2002. We expect to receive a second patent shortly that covers Ultima and
Durastone, further solidifying our proprietary advantage. We have a new
introduction package coming out this month, including the Durastone Classic
line and a major addition to the Ultima design and color offering, which we
are excited about. From a financial perspective, we expect improvement from
a recent price increase, continued progress in cost reductions, and modest
capital requirements as we look ahead. While we are not expecting much
improvement in the overall economy or the manufactured housing business, we
expect all the above should benefit our operating results.

Mr. Marcus continued, "Successfully resolving the asbestos problem would
eliminate a financial and management drain, permitting us to return our
focus exclusively to the business. It would also clean up our balance sheet
and eliminate the asbestos concerns the financial community has had
regarding Congoleum. Over the past several years, we've invested
significant capital to improve efficiencies. We also rearranged our
distribution network for the future, which required another major
investment. Finally, we've spent a great deal on new product development,
introduction, and merchandising. At the same time, we've weathered the
worst decline in manufactured housing in over a decade. With the asbestos
matter behind us, we would be positioned for greater success. I look
forward to our future opportunities."

Congoleum Corporation is a leading manufacturer of resilient flooring,
serving both residential and commercial markets. Its sheet, tile and plank
products are available in a wide variety of designs and colors, and are
used in remodeling, manufactured housing, new construction and commercial
applications. The Congoleum brand name is recognized and trusted by
consumers as representing a company that has been supplying attractive and
durable flooring products for over a century.


                WARNING REGARDING FORWARD LOOKING STATEMENTS

THE ABOVE NEWS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS, WITHIN
THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, THAT
INVOLVE RISKS, UNCERTAINTIES AND ASSUMPTIONS. THESE FORWARD-LOOKING
STATEMENTS ARE BASED ON CONGOLEUM'S EXPECTATIONS, AS OF THE DATE OF THIS
RELEASE, OF FUTURE EVENTS, AND CONGOLEUM UNDERTAKES NO OBLIGATION TO UPDATE
ANY OF THESE FORWARD LOOKING STATEMENTS. ALTHOUGH CONGOLEUM BELIEVES THAT
THESE EXPECTATIONS ARE BASED ON REASONABLE ASSUMPTIONS, WITHIN THE BOUNDS
OF ITS KNOWLEDGE OF ITS BUSINESS AND EXPERIENCE, THERE CAN BE NO ASSURANCE
THAT ACTUAL RESULTS WILL NOT DIFFER MATERIALLY FROM ITS EXPECTATIONS.
READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON ANY FORWARD-LOOKING
STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER FROM
EXPECTATIONS INCLUDE: (I) THE FUTURE COST AND TIMING OF ESTIMATED ASBESTOS
LIABILITIES AND PAYMENTS AND AVAILABILITY OF INSURANCE COVERAGE AND
REIMBURSEMENT FROM INSURANCE COMPANIES FOR ASBESTOS-RELATED PERSONAL INJURY
CLAIMS, (II) NEGOTIATING SETTLEMENT AGREEMENTS ON TERMS IT CONSIDERS
SATISFACTORY WITH A SUFFICIENT MAJORITY OF CLAIMANTS, (III) REACHING
AGREEMENT WITH OTHER CREDITORS, OR CLASSES OF CREDITORS, THAT EXIST OR MAY
EMERGE, (IV) CONGOLEUM'S SATISFACTION OF THE CONDITIONS AND OBLIGATIONS
UNDER ITS OUTSTANDING DEBT INSTRUMENTS, (V) THE RESPONSE FROM TIME-TO-TIME
OF ITS LENDERS, CUSTOMERS, SUPPLIERS AND OTHER CONSTITUENCIES TO THE
ONGOING PROCESS ARISING FROM CONGOLEUM'S STRATEGY TO SETTLE ITS ASBESTOS
LIABILITY, (VI) OBTAINING SUFFICIENT CREDITOR AND COURT APPROVAL OF ANY
REORGANIZATION PLAN PURSUED BY IT AND (VII) COMPLIANCE WITH THE UNITED
STATES BANKRUPTCY CODE, INCLUDING SECTION 524(g). ACTUAL RESULTS COULD
DIFFER SIGNIFICANTLY AS A RESULT OF THESE AND OTHER FACTORS DISCUSSED IN
CONGOLEUM'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31,
2001, ITS QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30,
2002 AND ITS OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.