TCR_Public/040807.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

             Saturday, August 7, 2004, Vol. 8, No. 165

                            Headlines


AVALON DIGITAL: Reports $88,204 Net Loss in April 2004
BURLINGTON INDUSTRIES: Post-Confirmation Quarterly Summary Report
ENRON: ENA Examiner's 119th Weekly Report - June 21 to 25, 2004
HAWAIIAN AIRLINES: June 2004 Net Income Widens to $4.7 Million
KAISER ALUMINUM: Reports $28.5 Million Net Income in June 2004

NEWPOWER HOLDINGS: Files June 2004 Monthly Operating Report
OWENS CORNING: June 2003 Monthly Operating Report
OWENS CORNING: July 2003 Monthly Operating Report
OWENS CORNING: August 2003 Monthly Operating Report
OWENS CORNING: September 2003 Monthly Operating Report

OWENS CORNING: October 2003 Monthly Operating Report
OWENS CORNING: November 2003 Monthly Operating Report
OWENS CORNING: December 2003 Monthly Operating Report
OWENS CORNING: January 2004 Monthly Operating Report
OWENS CORNING: February 2004 Monthly Operating Report

OWENS CORNING: March 2004 Monthly Operating Report
OWENS CORNING: April 2004 Monthly Operating Report
OWENS CORNING: May 2004 Monthly Operating Report
OWENS CORNING: Reports $33 Million Net Income for 2nd Quarter
TRENWICK GROUP: Reports $5.2 Million June 2004 Net Loss


                            *********


AVALON DIGITAL: Reports $88,204 Net Loss in April 2004
------------------------------------------------------
On September 5, 2003, Avalon Digital Marketing Systems, Inc., a
Delaware corporation filed a voluntary petition for reorganization
under Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court in Salt Lake City, Utah. The case has been
assigned to Judge Glen E. Clark and the case is being administered
under Case Number 03-35180.

For the month ended April 2004, Avalon Digital reported a net loss
of $88,204 against $97,137 of gross operating revenue.

At April 30, 2004, Avalon Digital's balance sheet showed:

      Current Assets             $  162,872
      Total Assets                  516,995
      Post-petition Liabilities     612,736
      Pre-petition Liabilities    9,495,081
      Total Owners' Equity       $9,590,822

A full-text copy of Avalon Digital Marketing Systems, Inc.'s April
2004 Monthly Operating Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1095792/000009631304000186/0000096313-04-000186-index.htm


BURLINGTON INDUSTRIES: Post-Confirmation Quarterly Summary Report
-----------------------------------------------------------------

                     Burlington Industries, Inc.
                      Quarterly Summary Report
                  Three months ended June 30, 2004

Beginning Cash Balance                              $136,873,469

All receipts received by the Debtor:
    Cash Sales                                                 0
    Collection of Accounts Receivable                    261,141
    Proceeds from Litigation                                   0
    Sale of Debtor's Assets                              194,627
    Capital Infusion pursuant to the Plan                381,770
    Interest Income                                      168,039
                                                    ------------
    Total cash received                                1,005,577
                                                    ------------
Total cash available                                $137,879,046
                                                    ------------

Disbursements or payments made by the Debtor:
    Disbursements made under the plan,
       excluding administrative claims of
       bankruptcy professionals:                      $2,140,460
    Disbursements made pursuant to administrative
       claims of bankruptcy professionals:                     0
    All other disbursements made in the ordinary
       course:                                         1,813,176
                                                    ------------
    Total Disbursements                                3,953,636
                                                    ------------
Ending cash balance                                 $133,925,411
                                                    ============


ENRON: ENA Examiner's 119th Weekly Report - June 21 to 25, 2004
---------------------------------------------------------------
Harrison J. Goldin, the Examiner for Enron North America,
delivers to the Court his 119th report summarizing the deposits
and disbursements into and out of ENA Accounts for the period
June 21, 2004 through June 25, 2004.

            Third Party Deposits and Disbursements:

            Date                    Deposits        Disbursements
            ----                    --------        -------------
      June 21, 2004                  $10,167            ($96,514)
      June 22, 2004                2,175,000              (8,277)
      June 23, 2004                  832,825                   0
      June 24, 2004                       36                   0
      June 25, 2004                   30,000             (30,437)
                                ------------       -------------
                Week Total:       $3,048,028           ($135,229)

            Inter-company Deposits and Disbursements:

            Date                    Deposits        Disbursements
            ----                    --------        -------------
      June 21, 2004                       $0                  $0
      June 22, 2004                        0                   0
      June 23, 2004                        0                   0
      June 24, 2004                   29,151             (29,420)
      June 25, 2004                        0              (1,000)
                                ------------       -------------
                Week Total:          $29,151            ($30,420)

            Total Deposits and Disbursements:

            Date                    Deposits        Disbursements
            ----                    --------        -------------
      June 21, 2004                  $10,167            ($96,514)
      June 22, 2004                2,175,000              (8,277)
      June 23, 2004                  832,825                   0
      June 24, 2004                   29,187             (29,420)
      June 25, 2004                   30,000             (31,437)
                                ------------       -------------
                Week Total:       $3,077,179           ($165,649)


HAWAIIAN AIRLINES: June 2004 Net Income Widens to $4.7 Million
--------------------------------------------------------------
On July 21, 2004, Hawaiian Airlines, the sole operating subsidiary
of Hawaiian Holdings, Inc., filed its unaudited June 2004 Monthly
Operating Report with the United States Bankruptcy Court for the
District of Hawaii. The carrier reports earning $4,713,000 on
$70,042,000 of revenues compared to $157,000 of earnings on $59.3
million of revenues in May 2004.

For the month ending June 30, 2004, Hawaiian Airlines' balance
sheet showed:

      Total Current Assets        $280,685,000
      Total Assets                 406,122,000
      Total Current Liabilities    277,959,000
      Total Liabilities            465,048,000
      Liabilities Subject
         to Compromise             133,446,000
      Shareholder's Deficit       $192,372,000

A full-text copy of Hawaiian Airlines' June 2004 Monthly Operating  
Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1172222/000095013604002396/file002.txt   


On March 21, 2003, Hawaiian Airlines, Inc. filed a voluntary
petition for reorganization under Chapter 11 of the United States  
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Hawaii (Case No. 03-00827).  Joshua Gotbaum serves as the chapter
11 trustee for Hawaiian Airlines, Inc.  Mr. Gotbaum is represented
by Tom E. Roesser, Esq., and Katherine G. Leonard at Carlsmith
Ball LLP and Bruce Bennett, Esq., Sidney P. Levinson, Esq., Joshua
D. Morse, Esq., and John L. Jones, II, Esq., at Hennigan, Bennett
& Dorman LLP.  


KAISER ALUMINUM: Reports $28.5 Million Net Income in June 2004
--------------------------------------------------------------

             Kaiser Aluminum Corporation -- All Debtors
                      Unaudited Balance Sheets
                        As of June 30, 2004
                           (In Thousands)

                              ASSETS

Cash                                                     $25,974

Receivables:
    Trade                                                144,153
    Other                                                  5,484
                                                       ---------
Total Receivables                                        149,637

Inventories                                              162,645
Prepaid expenses and other current assets                 25,797
                                                       ---------
Total current assets                                     364,053

Investments in and advances to subsidiaries              347,772
Intercompany receivables/payables, net                   (84,147)
Property, plant, and equipment - net                     223,802
Deferred income taxes                                         -
Other assets                                             521,252
                                                       ---------
Total Assets                                          $1,372,732
                                                       =========

                LIABILITIES & STOCKHOLDERS' EQUITY

Liabilities not subject to compromise:
    Accounts Payable                                     $78,152
    Accrued interest                                         879
    Accrued salaries, wages and related expenses          34,028
    Accrued post retirement benefit -- current             8,135
    Other accrued liabilities                             58,825
    Payable to affiliates                                 54,364
    Long term debt - current portion                       1,247
                                                       ---------
Total current liabilities                                235,630

Long-term liabilities                                     76,351
Accrued post-retirement benefit obligation                     -
Long-term debt                                             2,212
Liabilities subject to compromise                      2,823,778
Minority interests                                           655

Stockholders' equity:
    Preference stock                                           -
    Common stock                                             792
    Additional capital                                   539,086

Accumulated deficit - As of filing date                 (946,925)
Accumulated deficit - Post filing date                (1,252,664)
Accumulated other comprehensive income (loss)           (106,183)
Note receivable from parent                                    -
                                                       ---------
Total Liabilities & Stockholders' Equity              $1,372,732
                                                       =========


             Kaiser Aluminum Corporation -- All Debtors
                      Statements of Operations
                 For the Month Ending June 30, 2004
                           (In Thousands)

Net Sales                                               $127,859

Costs and expenses:
    Cost of products sold                                112,670
    Depreciation & amortization                            1,829
    Selling, administrative, R&D and general               5,695
    Other operating charges, net                         (30,370)
                                                       ---------
Total costs and expenses                                  89,824
                                                       ---------
Operating income (loss)                                   38,035

Other income (expense):
    Interest expenses, net                                  (641)
    Reorganization items                                  (2,472)
    Other-net                                             (1,262)
                                                       ---------
Income (loss) before
    income taxes and minority interest                    33,660

(Provision) benefit for income taxes                      11,415
Minority interests                                             -
Equity in income (loss) of subsidiaries                  (16,479)
                                                       ---------
Net income (loss)                                        $28,596
                                                       =========


             Kaiser Aluminum Corporation -- All Debtors
      Schedule of Consolidated Cash Receipts and Disbursements
                 For the Month Ending June 30, 2004
                           (In Thousands)

Receipts:
    Trade Receivables
       KACC Receivables                                 $108,360
       KAII Receivables                                   62,605
                                                       ---------
    Total Trade Receivables                              170,965

    Asbestos Insurance Recoveries                            507
    Proceeds from Asset Sales                              2,190
                                                       ---------
Total Receipts                                           173,662

Disbursements:
    Repayment of DIP Facility                             17,100
    Inventory/Raw Materials                               37,044
    Capital Expenditures                                     280
    Maintenance, Materials, etc.                           5,653
    Freight                                                4,069
    Utilities/Energy                                       9,670
    Hourly Payroll                                         7,511
    Salaried Payroll                                       6,441
    Hedging Activities                                       227
    VEBA funding                                           3,100
    Medical - Current and Former Employees                 7,613
    Annual Insurance Premiums                              1,113
    Workmen's Compensation                                   527
    Corporate General and Administrative                   2,520
    JV Fundings - Alumina                                 37,624
    JV Fundings - Primary, Net of Minority Interest       20,355
    Other Disbursements                                   11,893
                                                       ---------
Total Operating and G&A Disbursements                    172,740

Reorganization Items                                       1,589
                                                       ---------
Total Disbursements                                      174,329
                                                       ---------
Net Cash Flow                                               (667)

Beginning Bank Cash Balances                              25,827
Net Cash Flow                                               (667)
                                                       ---------
Ending Bank Cash Balances                                 25,160

Reconciling Items                                            814
                                                       ---------
Ending Book Cash Balances                                $25,974
                                                       =========


NEWPOWER HOLDINGS: Files June 2004 Monthly Operating Report
-----------------------------------------------------------
On July 29, 2004, NewPower Holdings filed its June 2004 Monthly
Operating Report with the Bankruptcy Court for the Northern
District of Georgia, Newnan Division.  The company reports an
opening cash balance of $93,739,000 and a closing cash balance of
$93,558,000.

A full-text copy of NewPower Holdings' June 2004 Monthly
Operating Report is available at no charge at:  
  
   http://www.sec.gov/Archives/edgar/data/1119307/000090514804003414/efc4-1417_5579521exh991.txt     
  

On August 15, 2003, the United States Bankruptcy Court for the
Northern District of Georgia, Newnan Division confirmed the Second
Amended Chapter 11 Plan with respect to NewPower Holdings, Inc.
and TNPC Holdings, Inc., a wholly owned subsidiary of the Company.
On February 28, 2003, the Bankruptcy Court previously confirmed
the Plan, and the Plan has been effective as of March 11, 2003,
with respect to The New Power Company, a wholly owned subsidiary
of the Company. The Plan became effective on October 9, 2003 with
respect to the Company and TNPC.


OWENS CORNING: June 2003 Monthly Operating Report
-------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                        As of June 30, 2003
                          (In Thousands)

Current Assets:
    Cash and cash equivalents                           $525,862
    Receivables                                          313,530
    Receivables-Inter-company                            959,199
    Inventories                                          257,793
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,136
    Other Current Assets                                  27,840
                                                     -----------
Total Current Assets                                 $2,087,844

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,010
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,304,455
    Goodwill                                              48,568
    Investment in Affiliates                              15,699
    Investment in Subsidiaries                         2,026,451
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                              61,179
                                                     -----------
Total Other Assets                                     3,631,852

Plant & Equipment:
    Land                                                  35,433
    Buildings & Leasehold Improvements                   543,465
    Machinery & Equipment                              2,161,794
    Construction in Progress                              72,552
    Less: Accumulated Depreciation                     1,511,031
                                                     -----------
Net Plant and Equipment                                1,302,213
                                                     -----------
TOTAL ASSETS                                          $7,021,909
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               413,603
    Inter-company Liabilities                            575,269
    Short-term debt                                            5
    Long-term debt - current portion                       3,353
                                                     -----------
Total Current Liabilities                                992,230

Long-Term Debt                                             6,362
Other Employee Benefits Liability                        148,042
Pension Plan Liability                                   451,650
Other Liability                                           73,784
                                                     -----------
Total Non-Current Liabilities                            673,476
                                                     -----------
Total Postpetition Liabilities                         1,672,068

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             421,611
    Other Employee Benefits Liability                    252,164
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,591
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                  6,282
                                                     -----------
Total Prepetition Liabilities                          8,827,630
Total Liabilities                                     10,499,698
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,638
    Retained Earnings(Deficit)                        (3,879,978)
    Accumulated Comprehensive Income(Loss)                (7,571)
    Other                                               (286,878)
                                                     -----------
Net Stockholder's Equity                              (3,477,789)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,021,909
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                 For the Month Ended June 30, 2003
                          (In Thousands)

Net sales                                              $287,361
Cost of Sales                                           239,102
                                                     -----------
Gross Margin                                             $48,259

Operating Expenses:
    Marketing and Administrative Expenses                 26,198
    Science and Technology Expenses                        1,564
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                     797
    Restructure Costs                                       (121)
    Other Expenses                                         2,469
                                                     -----------
Income (Loss) from Operations                             17,352

Other Expenses:
    Cost of Borrowed Funds                                   218
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                 17,134

Reorganization Items:
    Professional Fees                                      6,557
    U.S. Trustee Quarterly Fees                               12
    Interest Earned on Accumulated Cash                     (240)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                          5,826
                                                     -----------
Total Reorganization Expenses                             12,155
                                                     -----------
Income (Loss) Before Income Taxes                          4,979
Provision (credit) for Income Tax                         10,401
                                                     -----------
Income (Loss) Before Minority Interest and Equity
   in Net Income (Loss) of Affiliates                     (5,422)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                   (727)
                                                     -----------
Net Income (Loss)                                        ($6,149)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
                 For the Month Ended June 30, 2003
                          (In Thousands)

Cash, Beginning of Month                                $450,338

Receipts:
    Customer Receipts                                    299,441
    Inter-company Sales                                   17,305
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                         7,453
    Inter-company Transfers                               79,247
    Transfers from DIP                                   205,257
                                                     -----------
Total Receipts                                          $608,701

Disbursements:
    Net Payroll                                           31,644
    Payroll Taxes                                              2
    Sales Use & Other Taxes                                5,087
    Inventory Purchases                                  100,204
    Insurance                                                313
    Administrative & Selling                              47,628
    Other                                                 69,037
    Inter-company Transfers                               72,805
    Transfers to DIP                                     205,257
    Professional Fees                                      1,183
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      533,178

Net Cash Flow                                             75,523
                                                     -----------
Cash -- End of Month                                    $525,862
                                                     ===========


OWENS CORNING: July 2003 Monthly Operating Report
-------------------------------------------------
The July 2003 Monthly Operating Report is not available as of
press time.


OWENS CORNING: August 2003 Monthly Operating Report
---------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                       As of August 31, 2003
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $547,096
    Receivables                                          335,766
    Receivables-Inter-company                            955,744
    Inventories                                          222,212
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  2,490
    Other Current Assets                                  24,834
                                                     -----------
Total Current Assets                                  $2,088,626

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      165,884
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,294,183
    Goodwill                                              48,568
    Investment in Affiliates                              16,853
    Investment in Subsidiaries                         2,026,451
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                              58,525
                                                     -----------
Total Other Assets                                     3,619,914

Plant & Equipment:
    Land                                                  35,433
    Buildings & Leasehold Improvements                   553,566
    Machinery & Equipment                              2,184,500
    Construction in Progress                              79,390
    Less: Accumulated Depreciation                     1,530,084
                                                     -----------
Net Plant and Equipment                                1,322,805
                                                     -----------
TOTAL ASSETS                                          $7,031,345
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               391,443
    Inter-company Liabilities                            595,397
    Short-term debt                                            0
    Long-term debt - current portion                       3,353
                                                     -----------
Total Current Liabilities                                990,193

Long-Term Debt                                            37,460
Other Employee Benefits Liability                        159,195
Pension Plan Liability                                   447,175
Other Liability                                           71,837
                                                     -----------
Total Non-Current Liabilities                            678,207
                                                     -----------
Total Postpetition Liabilities                         1,705,860

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             416,437
    Other Employee Benefits Liability                    247,098
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,539
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                  4,521
                                                     -----------
Total Prepetition Liabilities                          8,815,577
Total Liabilities                                     10,521,437
Minority Interest                                              0
Stockholder's Equity:
    Common Stock                                         696,494
    Retained Earnings (Deficit)                       (3,891,655)
    Accumulated Comprehensive Income (Loss)               (8,185)
    Other                                               (286,746)
                                                     -----------
Net Stockholder's Equity                              (3,490,092)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,031,345
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                 For the Month Ended August 31, 2003
                           (In Thousands)

Net sales                                               $305,956
Cost of Sales                                            262,699
                                                     -----------
Gross Margin                                              43,257

Operating Expenses:
    Marketing and Administrative Expenses                 24,786
    Science and Technology Expenses                        1,343
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,050
    Restructure Costs                                          0
    Other Expenses                                         7,038
                                                     -----------
Income (Loss) from Operations                              9,040

Other Expenses:
    Cost of Borrowed Funds                                   232
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                  8,808

Reorganization Items:
    Professional Fees                                      2,117
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                     (588)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                          2,345
                                                     -----------
Total Reorganization Expenses                              3,874
                                                     -----------
Income (Loss) Before Income Taxes                          4,934
Provision (credit) for Income Tax                         12,885
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                    (7,951)
Minority Interest                                             0
Equity in Net Income (Loss) of Affiliates                   (105)
                                                     -----------
Net Income (Loss)                                        ($8,056)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
                 For the Month Ended August 31, 2003
                           (In Thousands)

Cash, Beginning of Month                                $483,786

Receipts:
    Customer Receipts                                    306,674
    Inter-company Sales                                    7,016
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                         7,487
    Inter-company Transfers                               87,860
    Transfers from DIP                                   169,665
                                                     -----------
Total Receipts                                          $578,702

Disbursements:
    Net Payroll                                           31,200
    Payroll Taxes                                              0
    Sales Use & Other Taxes                                4,300
    Inventory Purchases                                  105,023
    Insurance                                                325
    Administrative & Selling                              48,813
    Other                                                 74,202
    Inter-company Transfers                               78,194
    Transfers to DIP                                     169,665
    Professional Fees                                      3,669
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      515,392

Net Cash Flow                                             63,311
                                                     -----------
Cash -- End of Month                                    $547,096
                                                     ===========


OWENS CORNING: September 2003 Monthly Operating Report
------------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                      As of September 30, 2003
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $462,706
    Receivables                                          352,769
    Receivables-Inter-company                            962,105
    Inventories                                          191,423
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  2,490
    Other Current Assets                                  28,206
                                                     -----------
Total Current Assets                                  $2,000,183

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,455
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,275,404
    Goodwill                                              48,568
    Investment in Affiliates                              16,865
    Investment in Subsidiaries                         2,026,451
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                              54,324
                                                     -----------
Total Other Assets                                     3,597,557

Plant & Equipment:
    Land                                                  35,433
    Buildings & Leasehold Improvements                   546,917
    Machinery & Equipment                              2,159,996
    Construction in Progress                              78,403
    Less: Accumulated Depreciation                     1,539,129
                                                     -----------
Net Plant and Equipment                                1,281,620
                                                     -----------
TOTAL ASSETS                                          $6,879,360
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               407,868
    Inter-company Liabilities                            627,319
    Short-term debt                                            0
    Long-term debt - current portion                       3,348
                                                     -----------
Total Current Liabilities                              1,038,535

Long-Term Debt                                             6,244
Other Employee Benefits Liability                        164,247
Pension Plan Liability                                   285,336
Other Liability                                           79,444
                                                     -----------
Total Non-Current Liabilities                            529,027
                                                     -----------
Total Postpetition Liabilities                         1,573,806

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             417,720
    Other Employee Benefits Liability                    244,565
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,512
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                  3,670
                                                     -----------
Total Prepetition Liabilities                          8,813,449
Total Liabilities                                     10,387,255
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,424
    Retained Earnings(Deficit)                        (3,905,098)
    Accumulated Comprehensive Income(Loss)                (7,307)
    Other                                               (291,914)
                                                     -----------
Net Stockholder's Equity                              (3,507,895)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY               6,879,360
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
               For the Month Ended September 30, 2003
                           (In Thousands)

Net sales                                               $327,959
Cost of Sales                                            278,521
                                                     -----------
Gross Margin                                              49,438

Operating Expenses:
    Marketing and Administrative Expenses                 27,026
    Science and Technology Expenses                        1,870
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,050
    Restructure Costs                                          0
    Other Expenses                                        (2,222)
                                                     -----------
Income (Loss) from Operations                            $21,714

Other Expenses:
    Cost of Borrowed Funds                                   131
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                 21,583

Reorganization Items:
    Professional Fees                                      2,053
    U.S. Trustee Quarterly Fees                               12
    Interest Earned on Accumulated Cash                      316
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                          2,158
                                                     -----------
Total Reorganization Expenses                              4,539
                                                     -----------
Income (Loss) Before Income Taxes                         17,044
Provision (credit) for Income Tax                         30,500
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                   (13,456)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     13
                                                     -----------
Net Income (Loss)                                       ($13,443)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
               For the Month Ended September 30, 2003
                           (In Thousands)

Cash, Beginning of Month                                $547,096

Receipts:
    Customer Receipts                                    305,472
    Inter-company Sales                                    9,230
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                        19,782
    Inter-company Transfers                               93,019
    Transfers from DIP                                   549,817
                                                     -----------
Total Receipts                                          $977,320

Disbursements:
    Net Payroll                                           29,302
    Payroll Taxes                                              3
    Sales Use & Other Taxes                                6,400
    Inventory Purchases                                  102,222
    Insurance                                              4,094
    Administrative & Selling                              59,361
    Other                                                242,887
    Inter-company Transfers                               66,056
    Transfers to DIP                                     549,817
    Professional Fees                                      1,568
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                    1,061,710

Net Cash Flow                                            (84,390)
                                                     -----------
Cash -- End of Month                                    $462,706
                                                     ===========


OWENS CORNING: October 2003 Monthly Operating Report
----------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                       As of October 31, 2003
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $502,827
    Receivables                                          353,159
    Receivables-Inter-company                            957,920
    Inventories                                          164,950
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  2,490
    Other Current Assets                                  27,742
                                                     -----------
Total Current Assets                                  $2,009,572

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,261
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,258,784
    Goodwill                                              48,568
    Investment in Affiliates                              16,878
    Investment in Subsidiaries                         2,026,451
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             295,460
                                                     -----------
Total Other Assets                                     3,821,892

Plant & Equipment:
    Land                                                  35,433
    Buildings & Leasehold Improvements                   548,087
    Machinery & Equipment                              2,179,642
    Construction in Progress                              70,039
    Less: Accumulated Depreciation                     1,549,392
                                                     -----------
Net Plant and Equipment                                1,283,809
                                                     -----------
TOTAL ASSETS                                          $7,115,273
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               402,105
    Inter-company Liabilities                            633,201
    Short-term debt                                            0
    Long-term debt - current portion                       3,342
                                                     -----------
Total Current Liabilities                              1,038,648

Long-Term Debt                                             6,240
Other Employee Benefits Liability                        169,290
Pension Plan Liability                                   524,756
Other Liability                                           80,432
                                                     -----------
Total Non-Current Liabilities                            774,478
                                                     -----------
Total Postpetition Liabilities                         1,819,366

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             417,749
    Other Employee Benefits Liability                    242,032
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,485
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                  2,759
                                                     -----------
Total Prepetition Liabilities                          8,810,007
Total Liabilities                                     10,629,373
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings(Deficit)                        (3,911,433)
    Accumulated Comprehensive Income (Loss)               (6,964)
    Other                                               (291,779)
                                                     -----------
Net Stockholder's Equity                              (3,514,100)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,115,273
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                For the Month Ended October 31, 2003
                           (In Thousands)

Net sales                                               $332,715
Cost of Sales                                            280,726
                                                     -----------
Gross Margin                                              51,989

Operating Expenses:
    Marketing and Administrative Expenses                 27,338
    Science and Technology Expenses                        1,331
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,050
    Restructure Costs                                          0
    Other Expenses                                         6,719
                                                     -----------
Income (Loss) from Operations                             15,551

Other Expenses:
    Cost of Borrowed Funds                                   249
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                 15,302

Reorganization Items:
    Professional Fees                                      3,009
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                       89
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                          1,934
                                                     -----------
Total Reorganization Expenses                              5,032
                                                     -----------
Income (Loss) Before Income Taxes                         10,270
Provision (credit) for Income Tax                         16,617
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income(Loss) of Affiliates                    ($6,347)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     13
                                                     -----------
Net Income (Loss)                                        ($6,334)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
               For the Month Ended October 31, 2003
                           (In Thousands)

Cash, Beginning of Month                                $462,704

Receipts:
    Customer Receipts                                    325,336
    Inter-company Sales                                    2,719
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                         9,959
    Inter-company Transfers                              100,483
    Transfers from DIP                                   156,474
                                                     -----------
Total Receipts                                          $594,971

Disbursements:
    Net Payroll                                           28,382
    Payroll Taxes                                             26
    Sales Use & Other Taxes                                6,885
    Inventory Purchases                                  115,648
    Insurance                                                921
    Administrative & Selling                              57,185
    Other                                                 92,739
    Inter-company Transfers                               92,928
    Transfers to DIP                                     156,474
    Professional Fees                                      3,648
    U.S. Trustee Quarterly Fees                               12
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      554,848

Net Cash Flow                                             40,123
                                                     -----------
Cash -- End of Month                                    $502,827
                                                     ===========


OWENS CORNING: November 2003 Monthly Operating Report
-----------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                      As of November 30, 2003
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $558,520
    Receivables                                          309,244
    Receivables-Inter-company                            961,289
    Inventories                                          172,875
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,894
    Other Current Assets                                  24,064
                                                     -----------
Total Current Assets                                  $2,030,370

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,393
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,243,603
    Goodwill                                              48,568
    Investment in Affiliates                              16,890
    Investment in Subsidiaries                         2,026,451
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             294,774
                                                     -----------
Total Other Assets                                     3,806,169

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   546,440
    Machinery & Equipment                              2,159,584
    Construction in Progress                              61,846
    Less: Accumulated Depreciation                     1,519,922
                                                     -----------
Net Plant and Equipment                                1,283,583
                                                     -----------
TOTAL ASSETS                                          $7,120,122
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               415,439
    Inter-company Liabilities                            644,038
    Short-term debt                                            0
    Long-term debt - current portion                       1,082
                                                     -----------
Total Current Liabilities                              1,060,559

Long-Term Debt                                             6,235
Other Employee Benefits Liability                        174,004
Pension Plan Liability                                   524,281
Other Liability                                           79,089
                                                     -----------
Total Non-Current Liabilities                            777,374
                                                     -----------
Total Postpetition Liabilities                         1,844,168

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             411,857
    Other Employee Benefits Liability                    239,499
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,457
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                  4,083
                                                     -----------
Total Prepetition Liabilities                          8,802,878
Total Liabilities                                     10,647,046
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings(Deficit)                        (3,924,544)
    Accumulated Comprehensive Income (Loss)               (6,696)
    Other                                               (291,760)
                                                     -----------
Net Stockholder's Equity                              (3,526,924)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY               7,120,122
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
               For the Month Ended November 30, 2003
                           (In Thousands)

Net sales                                               $263,159
Cost of Sales                                            218,204
                                                     -----------
Gross Margin                                              44,955

Operating Expenses:
    Marketing and Administrative Expenses                 27,414
    Science and Technology Expenses                        1,370
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,027
    Restructure Costs                                          0
    Other Expenses                                        10,732
                                                     -----------
Income (Loss) from Operations                              4,412

Other Expenses:
    Cost of Borrowed Funds                                   230
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                  4,182

Reorganization Items:
    Professional Fees                                      2,098
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                     (221)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                            880
                                                     -----------
Total Reorganization Expenses                              2,757
                                                     -----------
Income (Loss) Before Income Taxes                          1,425
Provision (credit) for Income Tax                         14,841
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                   (13,416)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                    305
                                                     -----------
Net Income (Loss)                                       ($13,111)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
                For the Month Ended November 30, 2003
                           (In Thousands)

Cash, Beginning of Month                                $502,828

Receipts:
    Customer Receipts                                    300,742
    Inter-company Sales                                    8,786
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                        12,529
    Inter-company Transfers                               86,136
    Transfers from DIP                                   167,623
                                                     -----------
Total Receipts                                          $575,816

Disbursements:
    Net Payroll                                           33,736
    Payroll Taxes                                              0
    Sales Use & Other Taxes                                4,930
    Inventory Purchases                                  104,253
    Insurance                                                580
    Administrative & Selling                              49,605
    Other                                                 80,409
    Inter-company Transfers                               76,435
    Transfers to DIP                                     167,623
    Professional Fees                                      2,555
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      520,124

Net Cash Flow                                             55,692
                                                     -----------
Cash -- End of Month                                    $558,520
                                                     ===========


OWENS CORNING: December 2003 Monthly Operating Report
-----------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                       As of December 31, 2003
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $628,231
    Receivables                                          244,176
    Receivables-Inter-company                            977,185
    Inventories                                          167,409
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,711
    Other Current Assets                                  19,920
                                                     -----------
Total Current Assets                                  $2,041,116

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,422
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,246,558
    Goodwill                                              48,426
    Investment in Affiliates                              25,213
    Investment in Subsidiaries                         2,022,050
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             289,590
                                                     -----------
Total Other Assets                                     3,807,749

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   542,294
    Machinery & Equipment                              2,146,760
    Construction in Progress                              73,627
    Less: Accumulated Depreciation                     1,488,388
                                                     -----------
Net Plant and Equipment                                1,309,928
                                                     -----------
TOTAL ASSETS                                          $7,158,793
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               430,716
    Inter-company Liabilities                            658,220
    Short-term debt                                            0
    Long-term debt - current portion                       1,133
                                                     -----------
Total Current Liabilities                              1,090,069

Long-Term Debt                                             6,230
Other Employee Benefits Liability                        176,444
Pension Plan Liability                                   580,568
Other Liability                                          114,242
                                                     -----------
Total Non-Current Liabilities                            871,254
                                                     -----------
Total Postpetition Liabilities                         1,967,553

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             413,300
    Other Employee Benefits Liability                    236,966
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,430
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                    725
                                                     -----------
Total Prepetition Liabilities                          8,798,403
Total Liabilities                                     10,765,956
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings(Deficit)                        (3,963,974)
    Accumulated Comprehensive Income (Loss)               (6,088)
    Other                                               (333,177)
                                                     -----------
Net Stockholder's Equity                              (3,607,163)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,158,793
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
               For the Month Ended December 31, 2003
                           (In Thousands)

Net sales                                               $261,099
Cost of Sales                                            227,716
                                                     -----------
Gross Margin                                              33,383

Operating Expenses:
    Marketing and Administrative Expenses                 25,407
    Science and Technology Expenses                           31
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,132
    Restructure Costs                                     (2,932)
    Other Expenses                                        15,084
                                                     -----------
Income (Loss) from Operations                             (5,339)

Other Expenses:
    Cost of Borrowed Funds                                   244
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                 (5,583)

Reorganization Items:
    Professional Fees                                      5,455
    U.S. Trustee Quarterly Fees                               12
    Interest Earned on Accumulated Cash                     (434)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                         (1,895)
                                                     -----------
Total Reorganization Expenses                              3,138
                                                     -----------
Income (Loss) Before Income Taxes                         (8,721)
Provision (credit) for Income Tax                         30,751
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                   (39,472)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     42
                                                     -----------
Net Income (Loss)                                       ($39,430)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
              For the Month Ended December 31, 2003
                           (In Thousands)

Cash, Beginning of Month                                $558,520

Receipts:
    Customer Receipts                                    326,772
    Inter-company Sales                                   11,135
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                        14,106
    Inter-company Transfers                               93,029
    Transfers from DIP                                   218,929
                                                     -----------
Total Receipts                                          $663,921

Disbursements:
    Net Payroll                                           30,032
    Payroll Taxes                                              0
    Sales Use & Other Taxes                                6,346
    Inventory Purchases                                  113,745
    Insurance                                              1,020
    Administrative & Selling                              56,888
    Other                                                 84,748
    Inter-company Transfers                               75,979
    Transfers to DIP                                     218,929
    Professional Fees                                      6,523
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      594,210

Net Cash Flow                                             69,711
                                                     -----------
Cash -- End of Month                                    $628,231
                                                     ===========


OWENS CORNING: January 2004 Monthly Operating Report
----------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                       As of January 31, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $568,587
    Receivables                                          272,817
    Receivables-Inter-company                            969,529
    Inventories                                          189,112
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,657
    Other Current Assets                                  20,541
                                                     -----------
Total Current Assets                                  $2,024,727

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,581
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,245,173
    Goodwill                                              48,426
    Investment in Affiliates                              26,475
    Investment in Subsidiaries                         2,022,050
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             295,647
                                                     -----------
Total Other Assets                                     3,813,842

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   543,958
    Machinery & Equipment                              2,141,190
    Construction in Progress                              69,956
    Less: Accumulated Depreciation                     1,489,924
                                                     -----------
Net Plant and Equipment                                1,300,815
                                                     -----------
TOTAL ASSETS                                          $7,139,384
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               405,284
    Inter-company Liabilities                            671,602
    Short-term debt                                            0
    Long-term debt - current portion                       1,128
                                                     -----------
Total Current Liabilities                              1,078,014

Long-Term Debt                                             6,225
Other Employee Benefits Liability                        182,767
Pension Plan Liability                                   580,669
Other Liability                                          113,047
                                                     -----------
Total Non-Current Liabilities                            876,483
                                                     -----------
Total Postpetition Liabilities                         1,960,722

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             412,951
    Other Employee Benefits Liability                    234,433
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,445,013
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                    237
                                                     -----------
Total Prepetition Liabilities                          8,794,616
Total Liabilities                                     10,755,338
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings(Deficit)                        (3,973,161)
    Accumulated Comprehensive Income (Loss)               (5,692)
    Other                                               (333,177)
                                                     -----------
Net Stockholder's Equity                              (3,615,954)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,139,384
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                For the Month Ended January 31, 2004
                           (In Thousands)

Net sales                                               $247,131
Cost of Sales                                            216,801
                                                     -----------
Gross Margin                                              30,330

Operating Expenses:
    Marketing and Administrative Expenses                 25,302
    Science and Technology Expenses                        1,337
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                     585
    Restructure Costs                                          0
    Other Expenses                                         5,886
                                                     -----------
Income (Loss) from Operations                             (2,780)

Other Expenses:
    Cost of Borrowed Funds                                   194
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                 (2,974)

Reorganization Items:
    Professional Fees                                       4,661
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                     (207)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                            389
                                                     -----------
Total Reorganization Expenses                              4,843
                                                     -----------
Income (Loss) Before Income Taxes                         (7,817)
Provision (credit) for Income Tax                          1,383
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                   ($9,200)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     13
                                                     -----------
Net Income (Loss)                                        ($9,187)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
                For the Month Ended January 31, 2004
                           (In Thousands)

Cash, Beginning of Month                                $628,231

Receipts:
    Customer Receipts                                    215,558
    Inter-company Sales                                    5,413
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                        12,311
    Inter-company Transfers                               71,316
    Transfers from DIP                                   151,326
                                                     -----------
Total Receipts                                          $455,925

Disbursements:
    Net Payroll                                           42,769
    Payroll Taxes                                            205
    Sales Use & Other Taxes                               11,818
    Inventory Purchases                                   80,801
    Insurance                                              1,342
    Administrative & Selling                              65,238
    Other                                                 88,481
    Inter-company Transfers                               69,418
    Transfers to DIP                                     151,326
    Professional Fees                                      4,157
    U.S. Trustee Quarterly Fees                               12
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      515,569

Net Cash Flow                                            (59,644)
                                                     -----------
Cash -- End of Month                                    $568,587
                                                     ===========


OWENS CORNING: February 2004 Monthly Operating Report
-----------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                       As of February 29, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $490,557
    Receivables                                          309,523
    Receivables-Inter-company                            974,232
    Inventories                                          195,509
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,649
    Other Current Assets                                  19,130
                                                     -----------
Total Current Assets                                  $1,993,084

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      167,080
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,237,178
    Goodwill                                              48,426
    Investment in Affiliates                              26,488
    Investment in Subsidiaries                         2,022,050
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             289,911
                                                     -----------
Total Other Assets                                     3,800,623

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   548,023
    Machinery & Equipment                              2,142,146
    Construction in Progress                              69,772
    Less: Accumulated Depreciation                     1,501,038
                                                     -----------
Net Plant and Equipment                                1,294,538
                                                     -----------
TOTAL ASSETS                                          $7,088,245
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               364,502
    Inter-company Liabilities                            685,070
    Short-term debt                                            0
    Long-term debt - current portion                       1,122
                                                     -----------
Total Current Liabilities                              1,050,694

Long-Term Debt                                             6,221
Other Employee Benefits Liability                        189,201
Pension Plan Liability                                   580,250
Other Liability                                          112,551
                                                     -----------
Total Non-Current Liabilities                            882,002
                                                     -----------
Total Postpetition Liabilities                         1,938,917

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             410,895
    Other Employee Benefits Liability                    231,900
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,441,983
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                    249
                                                     -----------
Total Prepetition Liabilities                          8,787,009
Total Liabilities                                     10,725,926
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings (Deficit)                       (3,995,034)
    Accumulated Comprehensive Income (Loss)               (5,584)
    Other                                               (333,139)
                                                     -----------
Net Stockholder's Equity                              (3,637,681)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,088,245
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
               For the Month Ended February 29, 2004
                           (In Thousands)

Net sales                                               $268,970
Cost of Sales                                            235,791
                                                     -----------
Gross Margin                                              33,180

Operating Expenses:
    Marketing and Administrative Expenses                 27,155
    Science and Technology Expenses                        1,995
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,464
    Restructure Costs                                          0
    Other Expenses                                        12,299
                                                     -----------
Income (Loss) from Operations                             (9,732)

Other Expenses:
    Cost of Borrowed Funds                                   224
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                 (9,956)

Reorganization Items:
    Professional Fees                                      4,308
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                     (835)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                            463
                                                     -----------
Total Reorganization Expenses                              3,936
                                                     -----------
Income (Loss) Before Income Taxes                        (13,892)
Provision (credit) for Income Tax                          7,994
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                   (21,886)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     13
                                                     -----------
Net Income (Loss)                                       ($21,873)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
              For the Month Ended February 29, 2004
                           (In Thousands)

Cash, Beginning of Month                                $568,587

Receipts:
    Customer Receipts                                    225,654
    Inter-company Sales                                    3,505
    Loans and Advances                                         0
    Sale of Assets                                             1
    Other Receipts                                        12,198
    Inter-company Transfers                               70,834
    Transfers from DIP                                   273,695
                                                     -----------
Total Receipts                                          $585,888

Disbursements:
    Net Payroll                                           65,538
    Payroll Taxes                                             13
    Sales Use & Other Taxes                                5,298
    Inventory Purchases                                   98,986
    Insurance                                              1,363
    Administrative & Selling                              63,267
    Other                                                 93,065
    Inter-company Transfers                               59,833
    Transfers to DIP                                     273,695
    Professional Fees                                      2,860
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      663,918

Net Cash Flow                                            (78,030)
                                                     -----------
Cash -- End of Month                                    $490,557
                                                     ===========


OWENS CORNING: March 2004 Monthly Operating Report
--------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                        As of March 31, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $482,277
    Receivables                                          333,682
    Receivables-Inter-company                            978,475
    Inventories                                          191,787
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,438
    Other Current Assets                                  18,425
                                                     -----------
Total Current Assets                                  $2,008,568

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,778
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,237,356
    Goodwill                                              48,568
    Investment in Affiliates                              26,294
    Investment in Subsidiaries                         2,022,050
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             283,770
                                                     -----------
Total Other Assets                                     3,794,306

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   550,015
    Machinery & Equipment                              2,154,121
    Construction in Progress                              74,036
    Less: Accumulated Depreciation                     1,501,600
                                                     -----------
Net Plant and Equipment                                1,312,207
                                                     -----------
TOTAL ASSETS                                          $7,115,081
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               387,315
    Inter-company Liabilities                            701,874
    Short-term debt                                            0
    Long-term debt - current portion                       1,117
                                                     -----------
Total Current Liabilities                              1,090,306

Long-Term Debt                                             6,216
Other Employee Benefits Liability                        188,538
Pension Plan Liability                                   580,320
Other Liability                                          126,870
                                                     -----------
Total Non-Current Liabilities                            895,728
                                                     -----------

Total Postpetition Liabilities                         1,992,250

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             409,003
    Other Employee Benefits Liability                    229,367
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,441,952
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                      0
                                                     -----------
Total Prepetition Liabilities                          8,782,304
Total Liabilities                                     10,774,554
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings (Deficit)                       (4,018,364)
    Accumulated Comprehensive Income (Loss)               (5,480)
    Other                                               (331,705)
                                                     -----------
Net Stockholder's Equity                              (3,659,473)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,115,081
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                 For the Month Ended March 31, 2004
                           (In Thousands)

Net sales                                               $315,841
Cost of Sales                                            272,576
                                                     -----------
Gross Margin                                              43,265

Operating Expenses:
    Marketing and Administrative Expenses                 27,262
    Science and Technology Expenses                        1,884
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,048
    Restructure Costs                                          0
    Other Expenses                                         9,679
                                                     -----------
Income (Loss) from Operations                              3,392

Other Expenses:
    Cost of Borrowed Funds                                   125
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                  3,267

Reorganization Items:
    Professional Fees                                      6,727
    U.S. Trustee Quarterly Fees                               12
    Interest Earned on Accumulated Cash                       47
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                          5,378
                                                     -----------
Total Reorganization Expenses                             12,164
                                                     -----------
Income (Loss) Before Income Taxes                         (8,897)
Provision (credit) for Income Tax                         14,376
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                   (23,273)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                    (57)
                                                     -----------
Net Income (Loss)                                       ($23,330)
                                                     ===========

                   Owens Corning and Subsidiaries
       Consolidated Statement of Cash Receipts & Disbursements
                 For the Month Ended March 31, 2004
                           (In Thousands)

Cash, Beginning of Month                                $490,557

Receipts:
    Customer Receipts                                    289,777
    Inter-company Sales                                    9,710
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                         6,182
    Inter-company Transfers                               86,375
    Transfers from DIP                                   195,064
                                                     -----------
Total Receipts                                          $587,108

Disbursements:
    Net Payroll                                           31,268
    Payroll Taxes                                              0
    Sales Use & Other Taxes                                8,217
    Inventory Purchases                                  103,218
    Insurance                                              1,067
    Administrative & Selling                              72,510
    Other                                                111,641
    Inter-company Transfers                               67,967
    Transfers to DIP                                     195,064
    Professional Fees                                      4,435
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      595,387

Net Cash Flow                                             (8,279)
                                                     -----------
Cash -- End of Month                                    $482,277
                                                     ===========


OWENS CORNING: April 2004 Monthly Operating Report
--------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                        As of April 30, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $426,495
    Receivables                                          375,046
    Receivables-Inter-company                            975,681
    Inventories                                          196,143
    Insurance for asbestos litigation claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,387
    Other Current Assets                                  26,718
                                                     -----------
Total Current Assets                                  $2,003,954

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      166,177
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,234,396
    Goodwill                                              48,568
    Investment in Affiliates                              26,277
    Investment in Subsidiaries                         2,022,050
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             281,721
                                                     -----------
Total Other Assets                                     3,788,679

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   550,790
    Machinery & Equipment                              2,163,417
    Construction in Progress                              69,318
    Less: Accumulated Depreciation                     1,512,119
                                                     -----------
Net Plant and Equipment                                1,307,041
                                                     -----------
TOTAL ASSETS                                          $7,099,674
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               370,421
    Inter-company Liabilities                            711,165
    Short-term debt                                            0
    Long-term debt - current portion                       1,112
                                                     -----------
Total Current Liabilities                              1,082,698

Long-Term Debt                                             6,211
Other Employee Benefits Liability                        192,734
Pension Plan Liability                                   580,412
Other Liability                                          126,777
                                                     -----------
Total Non-Current Liabilities                            899,923
                                                     -----------
Total Postpetition Liabilities                         1,988,832

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             408,992
    Other Employee Benefits Liability                    226,834
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,441,921
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                      0
                                                     -----------
Total Prepetition Liabilities                          8,779,729
Total Liabilities                                     10,768,561

Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,076
    Retained Earnings (Deficit)                       (4,026,892)
    Accumulated Comprehensive Income (Loss)               (6,384)
    Other                                               (331,687)
                                                     -----------
Net Stockholder's Equity                              (3,668,887)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,099,674
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                 For the Month Ended April 30, 2004
                           (In Thousands)

Net sales                                               $309,138
Cost of Sales                                            260,713
                                                     -----------
Gross Margin                                              48,425

Operating Expenses:
    Marketing and Administrative Expenses                 33,588
    Science and Technology Expenses                        1,709
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                   1,047
    Restructure Costs                                          0
    Other Expenses                                         9,030
                                                     -----------
Income (Loss) from Operations                              3,051

Other Expenses:
    Cost of Borrowed Funds                                   250
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                  2,801

Reorganization Items:
    Professional Fees                                      3,566
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                      464
    (Gain)Loss from Sale of Equipment                          0
    (Gain)Loss from Settlement of Liabilities                  0
    Other Reorganization Expenses                          4,326
                                                     -----------
Total Reorganization Expenses                              8,356
                                                     -----------
Income (Loss) Before Income Taxes                         (5,555)
Provision (credit) for Income Tax                          2,968
                                                     -----------
Income (Loss) Before Minority Interest and Equity
    in Net Income (Loss) of Affiliates                    (8,523)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     (5)
                                                     -----------
Net Income (Loss)                                        ($8,528)
                                                     ===========

                    Owens Corning and Subsidiaries
        Consolidated Statement of Cash Receipts & Disbursements
                  For the Month Ended April 30, 2004
                            (In Thousands)

Cash, Beginning of Month                                $482,277

Receipts:
    Customer Receipts                                    257,225
    Inter-company Sales                                    7,749
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                         8,265
    Inter-company Transfers                               87,916
    Transfers from DIP                                   164,437
                                                     -----------
Total Receipts                                          $525,592

Disbursements:
    Net Payroll                                           29,202
    Payroll Taxes                                            364
    Sales Use & Other Taxes                                7,856
    Inventory Purchases                                  130,557
    Insurance                                              2,324
    Administrative & Selling                              71,731
    Other                                                 87,941
    Inter-company Transfers                               82,000
    Transfers to DIP                                     164,437
    Professional Fees                                      4,952
    U.S. Trustee Quarterly Fees                               12
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      581,374

Net Cash Flow                                            (55,783)
                                                     -----------
Cash -- End of Month                                    $426,495
                                                     ===========


OWENS CORNING: May 2004 Monthly Operating Report
-------------------------------------------------

                   Owens Corning and Subsidiaries
                     Consolidated Balance Sheet
                         As of May 31, 2004
                           (In Thousands)

Current Assets:
    Cash and cash equivalents                           $462,734
    Receivables                                          392,359
    Receivables-Inter-company                            973,569
    Inventories                                          188,748
    Insurance for Asbestos Litigation Claims                   0
    Deferred Income Taxes                                    484
    Income Tax Receivable                                  3,387
    Other Current Assets                                  28,870
                                                     -----------
Total Current Assets                                  $2,050,151

Other Assets:
    Insurance for Asbestos Litigation Claims               4,220
    Restricted Cash                                      165,976
    Restricted cash and securities                             0
    Deferred Income Taxes                              1,221,833
    Goodwill                                              48,568
    Investment in Affiliates                              26,261
    Investment in Subsidiaries                         2,022,050
    Notes Receivable - Intercompany                        5,270
    Other Non-current Assets                             273,700
                                                     -----------
Total Other Assets                                     3,767,878

Plant & Equipment:
    Land                                                  35,635
    Buildings & Leasehold Improvements                   550,184
    Machinery & Equipment                              2,161,514
    Construction in Progress                              71,028
    Less: Accumulated Depreciation                     1,516,590
                                                     -----------
Net Plant and Equipment                                1,301,771
                                                     -----------
TOTAL ASSETS                                          $7,119,800
                                                     ===========

Liabilities not Subject to Compromise:
    Accounts Payable & Accrued Liabilities               386,619
    Inter-company Liabilities                            723,900
    Short-term debt                                            0
    Long-term debt - current portion                       1,107
                                                     -----------
Total Current Liabilities                              1,111,626

Long-Term Debt                                             6,206
Other Employee Benefits Liability                        197,499
Pension Plan Liability                                   580,372
Other Liability                                          126,720
                                                     -----------
Total Non-Current Liabilities                            904,591
                                                     -----------
Total Postpetition Liabilities                         2,022,423

Prepetition Liabilities:
    Accounts Payable and Accrued Liabilities             408,374
    Other Employee Benefits Liability                    224,301
    Pension Plan Liability                                     0
    Debt-US Bank Credit Facility                       1,450,821
    Debt-Bonds & Other                                 1,441,890
    Asbestos-Related Liability                         2,731,353
    Inter-company                                      2,519,808
    Other                                                      0
                                                     -----------
Total Prepetition Liabilities                          3,776,547
Total Liabilities                                     10,798,970
Minority Interest                                              0

Stockholder's Equity:
    Common Stock                                         696,004
    Retained Earnings (Deficit)                       (4,037,756)
    Accumulated Comprehensive Income (Loss)               (5,893)
    Other                                               (331,525)
                                                     -----------
Net Stockholder's Equity                              (3,679,170)
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY              $7,119,800
                                                     ===========

                   Owens Corning and Subsidiaries
                Consolidated Statement of Operations
                  For the Month Ended May 31, 2004
                           (In Thousands)

Net sales                                               $310,362
Cost of Sales                                            261,948
                                                     -----------
Gross Margin                                              48,414

Operating Expenses:
    Marketing and Administrative Expenses                 30,748
    Science and Technology Expenses                        1,561
    Provision for Asbestos Litigation Claims                   0
    Insider Compensation                                     742
    Restructure Costs                                          0
    Other Expenses                                         9,363
                                                     -----------
Income (Loss) from Operations                              6,000

Other Expenses:
    Cost of Borrowed Funds                                   233
    Other                                                      0
                                                     -----------
Income (Loss) Before Reorganization Items                  5,767

Reorganization Items:
    Professional Fees                                      3,740
    U.S. Trustee Quarterly Fees                                0
    Interest Earned on Accumulated Cash                     (111)
    (Gain) Loss from sale of equipment                         0
    (Gain) Loss from Settlement of Liabilities                 0
    Other Reorganization Expenses                            424
                                                     -----------
Total Reorganization Expenses                              4,053
                                                     -----------
Income (Loss) Before Income Taxes                          1,714
Provision (credit) for Income Tax                         12,573
                                                     -----------
Income (Loss) Before Minority Interest and               (10,859)
Minority Interest                                              0
Equity in Net Income (Loss) of Affiliates                     (5)
                                                     -----------
Net Income (Loss)                                       ($10,864)
                                                     ===========

                   Owens Corning and Subsidiaries
      Consolidated Statement of Cash Receipts & Disbursements
                  For the Month Ended May 31, 2004
                           (In Thousands)

Cash, Beginning of Month                                $426,495

Receipts:
    Customer Receipts                                    284,811
    Inter-company Sales                                   10,155
    Loans and Advances                                         0
    Sale of Assets                                             0
    Other Receipts                                         9,142
    Inter-company Transfers                               94,144
    Transfers from DIP                                   187,971
                                                     -----------
Total Receipts                                          $586,223

Disbursements:
    Net Payroll                                           31,872
    Payroll Taxes                                              0
    Sales Use & Other Taxes                                5,233
    Inventory Purchases                                  104,556
    Insurance                                              1,551
    Administrative & Selling                              53,314
    Other                                                 80,638
    Inter-company Transfers                               80,480
    Transfers to DIP                                     187,971
    Professional Fees                                      4,369
    U.S. Trustee Quarterly Fees                                0
    Court costs                                                0
    Adjustment                                                 0
                                                     -----------
Total Disbursements                                      549,984

Net Cash Flow                                             36,239
                                                     -----------
Cash -- End of Month                                    $462,734
                                                     ===========


OWENS CORNING: Reports $33 Million Net Income for 2nd Quarter
-------------------------------------------------------------
Owens Corning (OTC: OWENQ) reported financial results for the
quarter ended June 30, 2004.

For the second quarter, the company had net sales of $1.441
billion, compared to net sales of $1.239 billion for the same
period in the prior year.  For the quarter, the company had net
income of $33 million.  This compares to net income of $18
million for the second quarter of 2003.

Owens Corning reported income from operations of $94 million for
the quarter, which included $28 million of Chapter 11-related
charges.  For the second quarter of 2003, the company reported
income from operations of $43 million, including $38 million of
Chapter 11-related charges, $13 million for restructuring and
other charges and $4 million of income from asbestos-related
insurance recoveries.

Owens Corning ended the quarter with a cash balance of $874
million.

"Sales for the quarter were the highest in our 65-year history, as
we experienced strong demand in all our major markets," said Dave
Brown, Owens Corning's chief executive officer.

"As we evaluate our results, excluding the charges related to our
Chapter 11 process and other restructuring costs, we are pleased
with the progress we are making in our operations, especially in
the face of high energy and raw material costs."

Owens Corning is a world leader in building materials systems and
composite systems.  Founded in 1938, the company had sales of $5
billion in 2003.  Additional information is available on Owens
Corning's Web site at http://www.owenscorning.com/or by calling  
the company's toll-free General Information line: 1-800-GETPINK.

On October 5, 2000, Owens Corning and 17 United States
subsidiaries filed voluntary petitions for relief under Chapter
11 of the U. S. Bankruptcy Code in the U. S. Bankruptcy Court for
the District of Delaware.  The Debtors are currently operating
their businesses as debtors-in-possession in accordance with
provisions of the Bankruptcy Code.  The Chapter 11 cases of the
Debtors are being jointly administered under Case No. 00-3837
(JKF).  The Chapter 11 cases do not include other U.S.
subsidiaries of Owens Corning or any of its foreign subsidiaries.
The Debtors filed for relief under Chapter 11 to address the
growing demands on Owens Corning's cash flow resulting from the
substantial costs of asbestos personal injury liability.

On October 24, 2003, the Debtors, together with the Official
Committee of Asbestos Claimants and the Legal Representative for
future asbestos personal injury claimants, filed an amended Joint
Plan of Reorganization in the U. S. Bankruptcy Court for the
District of Delaware.  On June 7, 2004, Owens Corning announced
that an agreement in principle had been reached with the Official
Committee of Asbestos Claimants, the Legal Representative for the
class of future asbestos claimants, and the official
representatives of Owens Corning's prepetition bondholders and
trade creditors. As a result of the agreement in principle, Owens
Corning has now gained support for the Plan from all of its major
creditor groups with the exception of the holders of debt under
its $1.8 billion pre-petition bank credit facility, who continue
to oppose the Plan.  It is expected that the Plan will be amended
to reflect the terms of the agreement in principle.  The Plan is
subject to confirmation by the Bankruptcy Court.

The current Plan, as amended to reflect the agreement in
principle, provides for payment of 38.5 percent of the face
amount of all unsecured creditors' claims, in the form of new
common stock and notes of the restructured company, and cash.
However, the percentage recovery and the value of the payments
ultimately made under the Plan to each class of creditors will
depend upon a number of factors.  Additional distributions from
potential insurance and other third-party claims may also be paid
to certain classes of creditors, but it is expected that all
classes of pre-petition unsecured creditors will be impaired.
Therefore, the Plan also provides that the existing common stock
of Owens Corning will be cancelled, and that current shareholders
will receive no distribution or other consideration in exchange
for their shares.  It is impossible to predict at this time the
terms and provisions of any plan of reorganization that may
ultimately be confirmed or the treatment of creditors thereunder.

A full-text copy of Owens Corning's Form 10-Q report is available
for free at the Securities and Exchange Commission at:

   http://www.sec.gov/Archives/edgar/data/75234/000119312504131427/d10q.htm


                   Owens Corning And Subsidiaries
                     Consolidated Balance Sheet
                        As of June 30, 2004
                      (In millions of dollars)

                                ASSETS

Current Assets:
    Cash and cash equivalents                               $874
    Receivables                                              625
    Inventories                                              445
    Other current assets                                      44
                                                       ---------
Total Current Assets                                       1,988

Other Assets:
    Restricted cash - asbestos and insurance-related         166
    Restricted cash, securities and other - Fibreboard     1,392
    Deferred income taxes                                  1,152
    Pension-related assets                                   302
    Goodwill                                                 187
    Investments in affiliates                                 63
    Other non-current assets                                 157
                                                       ---------
Total other                                                3,419

Plant and Equipment:
    Land                                                      77
    Buildings and leasehold improvements                     785
    Machinery and equipment                                3,213
    Construction in progress                                 104
                                                       ---------
                                                           4,179
Less - Accumulated depreciation                           (2,213)
                                                       ---------
Net plant and equipment                                    1,966
                                                       ---------
Total Assets                                              $7,373
                                                       =========

               LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
    Accounts payable and accrued liabilities                $782
    Short-term debt                                           45
    Long-term debt - current portion                          47
                                                       ---------
Total Current Liabilities                                    874

Long-term debt                                                64
  
Other employee benefits liability                            700
Pension plan liability                                       406
Other Liabilities                                            186
                                                       ---------
Total Other Liabilities                                    1,292
  
Liabilities subject to compromise                          9,202

Company-Obligated Securities of Entities
    Holding Solely Parent Debentures                         200

Minority Interest                                             45

Stockholders' Deficit:
    Common stock                                               6
    Additional paid-in capital                               690
    Deficit                                               (4,613)
    Accumulated other comprehensive loss                    (386)
    Other                                                     (1)
                                                       ---------
Total stockholders' deficit                               (4,304)
                                                       ---------
Total Liabilities And Stockholders' Deficit               $7,373
                                                       =========

                   Owens Corning And Subsidiaries
               Consolidated Statement of Income (Loss)
                  Three Months Ended June 30, 2004
                      (In millions of dollars)


Net Sales                                                 $1,441
Cost Of Sales                                              1,178
                                                       ---------
Gross margin                                                 263

Operating Expenses:
    Marketing and administrative expenses                    129
    Science and technology expenses                           11
    Restructure costs                                          -
    Chapter 11 related reorganization items                   28
    Credit for asbestos litigation                             -
    Other                                                      1
                                                       ---------
Total operating expenses                                     169

Income (Loss) From Operations                                 94
Interest expense                                               1
                                                       ---------
Income (Loss) Before Income Tax Expense                       93
Income tax expense                                            56
                                                       ---------
Income (Loss) Before Equity in Income (Loss) of
    Affiliates                                                37
Minority interest                                             (1)
Equity in net income of affiliates                            (3)
                                                       ---------
NET INCOME (LOSS)                                            $33
                                                       =========

                   Owens Corning And Subsidiaries
                Consolidated Statement of Cash Flows
                   Six Months Ended June 30, 2004
                      (In millions of dollars)

Net Cash Flow From Operations
    Net income (loss)                                        $38

Reconciliation of net cash used in operations
Non-cash items:
    Provision for depreciation and amortization              111
    Provision (credit) for impairment of fixed assets         --
    Provision for deferred income taxes                       42
    Provision for pension and other employee benefits         58
    Other                                                     13
Increase in receivables                                     (153)
Increase (decrease) in inventories                           (49)
Decrease in accounts payable                                  10
Pension fund contribution                                     (3)
Payments for other employee benefits liability               (13)
Increase in restricted cash, securities and other              -
Proceeds from insurance for asbestos litigation claims         3
Other                                                         (1)
                                                       ---------
Net cash flow from operations                                 56

Net Cash Flow From Investing:
    Additions to plant and equipment                         (99)
    Investments in subsidiaries, net of cash acquired        (74)
    Proceeds from the sale of affiliate or business            6
    Other                                                      -
                                                       ---------
Net cash flow from investing                                (167)

Net Cash Flow From Financing:
    Other additions to long-term debt                          -
    Other reductions to long-term debt                       (13)
    Net increase in short-term debt                            1
    Subject to compromise                                     (5)
    Other                                                      2
                                                       ---------
Net cash flow from financing                                 (15)

Effect of exchange rate changes on cash                       (5)

Net decrease in cash and cash equivalents                   (131)
                                                       ---------
Cash and cash equivalents at beginning of period           1,005
                                                       ---------
Cash and cash equivalents at end of period                  $874
                                                       =========


TRENWICK GROUP: Reports $5.2 Million June 2004 Net Loss
-------------------------------------------------------
On July 20, 2004, Trenwick America Corporation, Trenwick Group
Ltd. (in provisional liquidation) and LaSalle Re Holdings Limited
(in provisional liquidation) filed monthly operating reports for
the month ended June 30, 2004 and the period from August 20, 2003
to June 30, 2004 with the United States Bankruptcy Court for the
District of Delaware.

Trenwick Group Ltd. (Bankr. D. Del. Case No. 03-12636), reports a
$5,246,430 net loss for the month ended June 2004, and a
cumulative $86,867,439 loss for the period from August 20, 2003 to
June 30, 2004.

A full-text copy of Trenwick Group Ltd.'s June 2004 Monthly
Operating Report is available at no charge at:  

  http://www.sec.gov/Archives/edgar/data/1122211/000116923204003873/d60259_ex99-1.txt  


Trenwick America Corporation (Bankr. D. Del. Case No. 03-12635)   
reports a $4,557,886 net loss in June 2004 and a cumulative  
$61,324,902 loss during the course of its chapter 11  
restructuring.  

A full-text copy of Trenwick America's June 2004 Monthly Operating
Report is available at no charge at:  

   http://www.sec.gov/Archives/edgar/data/1122211/000116923204003873/d60259_ex99-2.txt  


LaSalle Re Holdings Limited (Bankr. D. Del. Case No. 03-12637)   
reports a $51,759 net loss in June 2004 and a cumulative
$3,839,082 post-petition loss.  

A full-text copy of LaSalle's June 2004 Monthly Operating Report
is available at no charge at:  

   http://www.sec.gov/Archives/edgar/data/1122211/000116923204003873/d60259_ex99-3.txt
  

On August 20, 2003, TGL and LaSalle Re Holdings Limited (in  
provisional liquidation) filed insolvency proceedings in the  
Supreme Court of Bermuda. On August 22, 2003, the Bermuda Court  
granted an order appointing Michael Morrison and John Wardrop,  
partners of KPMG in Bermuda and KPMG LLP in the United Kingdom,  
respectfully, as Joint Provisional Liquidators in respect of TGL
and LaSalle. The Bermuda Court granted the JPLs the power to
oversee the continuation and reorganization of these companies'  
businesses under the control of their boards of directors and  
under the supervision of the Bankruptcy Court and the Bermuda  
Court. The JPLs have not audited the contents of this report.

                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                            *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published by  
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,  
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.  
Metzler, Emi Rose S.R. Parcon, Bernadette C. de Roda, Rizande B.  
Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie  
Sabijon and Peter A. Chapman, Editors.

Copyright 2004.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $675 for 6 months delivered via e-
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                    *** End of Transmission ***