OWENS CORNINGImperialConference

Differentiate, Perform, Grow

Q3 Results Based on Strong Global Composites & Roofing

Performance

Duncan PalmerChief Financial Officer

November 18, 2008

Imperial Capital Conference

2

Forward-Looking Statements and Non-GAAP Measures

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those projected in these statements. Such factors include, without limitation, competitive factors, pricing pressures, availability and cost of energy and materials, acquisitions and achievement of expected synergies therefrom, general economic conditions, the effect of industry and economic conditions on the market and operating conditions of our customers and factors detailed from time to time in the Company’s Securities and Exchange Commission filings. The information in this presentation speaks as of the date October 29, 2008 and is subject to change. The Company does not undertake any duty to update or revise forward-looking statements. Any distribution of this presentation after that date is not intended and will not be construed as updating or confirming such information.

Additional Company information is available on the Owens Corning Web site: www.owenscorning.com.

Certain data included within this presentation contains "non-GAAP financial measures" as defined by the Securities and Exchange Commission. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles can be found in our Current Report on Form 8-K filed with the Securities and Exchange Commission on October 29, 2008.

3

Owens Corning At A Glance

• Founded in 1938, an industry leader in glass fiber insulation, roofing and asphalt, and glass fiber reinforcements

• 2007 sales: $5 billion

• 18,000 employees in 26 countries

• 127.4 million diluted shares outstanding at September 30, 2008

• Senior debt ratings: BBB- and Ba1

• FORTUNE 500 company for 54 consecutive years.

• Residential Insulation• Commercial & Industrial Insulation• Manufactured Stone Veneer• Residential Shingles• Roofing Asphalts

• Glass Fiber Reinforcement Materials for Composites

Global LeaderLeading North AmericanMarket Positions

The Pink Panther™ © 1964-2008 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved.The color PINK is a registered trademark of Owens Corning. ©2008 Owens Corning.

4

Business Segment Overview

(1) Percentages by segment based on revenue of $4.7B before corporate eliminations

(2) Percentages based on segment results before restructuring costs and other credits, general corporate expenses, Income taxes and interest expense.

Nine Months 2008 YTD Revenue:$4.7 billion(1)

Nine Months 2008 YTD EBIT:$316 million(2)

Roofing and Asphalt

30%

Other Building Materials and

Services

4%

Composite Solutions

41%Insulating Systems

25%

Roofing and

Asphalt 36%

Other Building Materials and Services

-3%

Composite Solutions

60%

Insulating Systems

7%

Composites Group

6

An engineered material system…

…resulting in unique attributes replacing traditional materials

What is a “Composite”?

+ Other Materials• Resins• Additives• Filler

Source: Owens Corning

Reinforcements

High Strength Light WeightDurable Non-ConductiveNon-CorrosiveLonger Blades Up to 50% Lighter

Than Steel Safety

Glass 95%* Other

7

CompositesComposites

Sales EBIT as % of Sales

U.S. & Canada Residential

Construction 9%

U.S. & Canada Commercial & Industrial

20%

International71%

Company estimates

Q3 2008 Highlights

Q3 2008 YTD Revenue by End Market Four-Year and LTM Financial Performance*

• Sales up 48% and EBIT up 108% year-over-year, primarily due to acquisition

• About two-thirds of earnings increase due to acquisition, net of the divestiture

• Improved manufacturing productivity

• Inflation not fully offset by higher prices

2937EBIT as % of all segments

65%2033D&A

79EBIT as % of sales

108%2654EBIT

48%397589Net sales*

% ChangeQ3 2007Q3 2008($ in millions)

*Net sales before inter-segment eliminations

*2004 is not recast for the effect of discontinued operations

%

%

%

%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2004 2005 2006 2007 LTM0%

5%

10%

15%

20%

25%

30%

8

Greater Value through Synergy Attainment


At least $100 million of total synergies by 2011

Composition of Synergies

Successful Acquisition Market Position Innovation

Technology: • Upgrading to Advantex®

Supply Chain: • Reconfiguring plants• Fewer ocean shipments

Operating Expenses: • Eliminating redundancies

50%

20%

30%

9

Owens Corning is #1

Demand for Glass Reinforcements is Growing

Trends Driving Growth• Emerging economies

• Global energy demand

• Green solutions

Source: U.S. Fiber Economic Bureau, APFE, Owens Corning

1.5 to 2X Global GDP

5% to 7% CAGR

$8 B

… in glass fibers… in technical fabrics… in specialty glass mats


10

0

1,000

Attractive End-Use Market Growth

Power &Energy

Aerospace& Defense

WaterDistribution TransportationIndustrial Housing


Owens Corning has played a major rolein the development of these markets

Consumer

Mar

ket S

ize

for

Gla

ss R

einf

orce

men

ts (k

t)


CAGR ’08-’13>10% ~5%

Growth

11

Wind Power

• The world will spend $11 trillion on power infrastructure through 2030

• By 2015, spending on renewable energy will reach $300 billion a year

• Wind power is growing 20% per year, consuming 200,000 tons of glass reinforcements annually

Source: International Energy Agency; Morgan Stanley Clean Energy Report, May 2008; BTM Consultant ApS – March 2008; Owens Corning

Owens Corning is the leading supplier of glass reinforcements for wind power today

Building MaterialsGroup

13

Residential and Commercial Building Materials

• Attractive building materials segments: – Insulating Systems– Roofing and Asphalt– Other Building Materials and Services

• Leading market shares

• Powerful brand

• Broad distribution

• Used in virtually every home built in America

Roofing and Asphalt

15

Asphalt Roofing Industry is Attractive

• More than $7 billion market representing 75% of all residential roofing installed

• 75% – 80% re-roof; 20% – 25% new construction

• Market growth driven by aging of existing housing stock, new construction and storm activity

• Four national producers service more than 90% of the market

16

Four-Year and LTM Financial Performance

Net sales before inter-segment eliminations

Roofing and AsphaltRoofing and Asphalt


11%U.S. & Canada

Residential Repair & Remodeling

64%U.S. & Canada New Residential

Construction25%

Q3 2008 Highlights

Q3 2008 YTD Revenue by End Market

• Sales up 63% on higher selling prices due to raw material and delivery costs

• EBIT up on improved productivity, higher selling prices and improved mix

• Selling price increases offset inflation for first nine months of the year

• Storm-related demand expected to continue into 2009

Company estimates


10%1011D&A


533%1595EBIT

63%379616Net sales*


$0

$500

$1,000

$1,500

$2,000

2004 2005 2006 2007 LTM0%

2%

4%

6%

8%

%

%

%

%


17

Strategic Priorities

• Manage price to recover cost inflation

• Innovation fuels our customers’ success

– Duration® Series Shingle

– Roofing accessories

– Reinsulation opportunity

• Margin improvement

– Enhance product mix

– Increase roofing accessory sales

– Relentless about cost reduction

Improved operating margin and return on invested capital

18

Hip & Ridge Shingles

VentSure® Ventilation Products

Owens Corning Felt Underlayment Products

Owens Corning Shingles

Owens Corning Starter Shingle ProductsWeatherLock® Self-Sealing Ice & Water Barrier ProductsRapidFlowTM Gutter Drainage Protectionraft-R-mate® Attic Rafter VentUndereave Ventilation Products

AttiCat® Expanding Blown-In Pink FiberglasTM Insulation

Hip & Ridge Shingles

VentSure® Ventilation Products

Owens Corning Felt Underlayment Products

Owens Corning Shingles

Owens Corning Starter Shingle Products

Providing “Top of the House” Solutions

Insulating Systems

20

Our Insulating Products

• Residential Insulating Batt – used in wall cavities of newly constructed and existing homes

• Foam Insulation – used in above- and below-grade construction applications

• Flexible Duct Media – insulated duct used in new and existing homes as a more energy-efficient HVAC solution than metal ducts

• Metal Building Insulation – insulation used in commercial and industrial metal buildings

• Commercial and Industrial Pipe Insulation – fiberglass insulated pipe used in hot and cold industrial applications

21

• Remain profitable in a weak market

• Responsive capacity management

• Focus on operational execution

• Commercialize innovation supporting energy efficiency

Insulating Systems Strategic Priorities

Customer focus, cycle management and innovation are key to our success

22


Company estimates

Q3 2008 Highlights

Four-Year and LTM Financial Performance

Insulating SystemsInsulating Systems

• Reached breakeven profitability in very weak U.S. housing market

• Sales down on lower volumes

• About 70% of EBIT decline due to lower selling prices and inflation


27%

U.S. & Canada Residential Repair

& Remodeling21%

U.S. & Canada New Residential

Construction39%

International13%



(6)%3331D&A


(100)%420EBIT

(11)%462412Net sales*


$0

$500

$1,000

$1,500

$2,000

$2,500

2004 2005 2006 2007 LTM0%

5%

10%

15%

20%

25%

%

%

%

%


23

The Reinsulation Market Opportunity

• 40% of all energy in the United States is used in buildings

– More than industry and more than transportation

• Concern for energy efficiency and the environment is front-page news around the world

• In 2008, Oil and natural gas prices reached historic highs

• Insulation is the single-most cost-effective solution in the world to reduce greenhouse gases*

Nearly 80 million homes in United States are under insulated

*Source: McKinsey & Company

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Owens Corning Financial Strategies

• Financial performance and discipline– Strong operating cash flow to support growth and

innovation– Continual focus on return on net assets in excess of

cost of capital

• Balanced use of free cash flow– Maintain strong balance sheet and ample liquidity– Disciplined capital investment to maintain the core

business and to grow through international opportunities– Support shareholder returns

Differentiate, Perform, Grow

Questions & Discussion

Duncan PalmerChief Financial Officer

November 18, 2008

Imperial Capital Conference

Appendix

27

Key Financial Data

1,91583

1028%

0.42102

830.570.30

74

38112

1,268

Q3-2007

2,0142404585%

1.06242181

-(6.17)

-

(794)(794)4,556

Q3 YTD 2008

1,9152343657%

0.892531910.580.52

75

67142

3,674

Q3 YTD 2007

2,014Debt, net of cash84D&A from continuing operations

151Marketing and administrative expenses7%Adjusted EBIT as a % of sales

0.72Adjusted EPS (diluted) from continuing operations

111Adjusted EBIT from continuing operations98EBIT from continuing operations

-EPS (diluted) from discontinued operations(6.36)EPS (diluted) from continuing operations*

-Earnings from discontinued operations

(810)Earnings (loss) from continuing operations*(810)Net earnings (loss)*1,629Net sales

Q3-2008($ in millions, except per share data)

*Includes Impact of Income Tax Valuation Allowance of $899 million

28

Q3 2008 Reconciliation from Adjusted EBITto EBIT

$98$(1) $(2)

$16

$(6)

$(20) $111

0

30

60

90

120

150

Q3 2008 Adjusted EBIT

Gains on Sales of Assets and Other

Acquisition Integration/Transaction Costs

Employee Emergence Equity Expense

Restructuring and Other C

osts

Net Precious Metal Lease Expense

Q3 2008 EBIT

EBIT

($M

M)

29

Adjusted EBIT by Business SegmentQ3 2008 Compared with Q2 2008

0

50

100

150

200

Q2 2008

Roofing an

d Asphalt

Composite S

olutio

ns Busin

ess

Insulatin

g Sys

tems Busin

ess

Other Build

ing Mate

rials

& Service

s

Corporate

Q3 2008

$77

$2

$58$(7)

$(2)$111

$(17)

Adj

uste

d EB

IT

($M

M)

30


Other Building Materials & ServicesOther Building Materials & Services

U.S. & Canada Commercial &

Industrial18%

U.S. & Canada New Residential

Construction50%

U.S. & CanadaResidential Repair

& Remodeling17%

Q3 2008 Highlights


• Masonry products continued to face weak construction-related demand leading to majority of the sales and EBIT decline

• Basement finishing and SunSuites™ sales down due to weak consumer credit markets and impact on home remodeling

International15%

*2004 is not recast for the effect of discontinued operations

Four-Year and LTM Financial Performance*

Company estimates

8(2)EBIT as % of all segments

(25)%43D&A

9(4)EBIT as % of sales

(143)%7(3)EBIT

(14)%7867Net sales*


$0

$400

$800

$1,200

$1,600

2004 2005 2006 2007 LTM-8%

-4%

0%

4%

8%

%

%

%

%


31

Other Items

• Energy used in manufacturing– Represents about 10% of cost of sales– About 60% natural gas, 30% electricity, 10% other

• Capital expenditures estimated to be somewhat higher than $350 million in 2008

• Liquidity position remains strong

• Net Debt is currently expected to be at or close to last year’s level of $1.9 billion at year’s end

32

Share Buy-Back Program

• Announced a share buy-back program in the first quarter of 2007

• Authorized to repurchase up to 5%, approximately 6.5 million shares, of Owens Corning outstanding stock

• During Q3 Owens Corning repurchased 1.9 million shares of the Company’s common stock at an average price paid of $22.23

• Through September 2008, Owens Corning repurchased approximately 2.9 million shares of the Company’s common stock at an average price of $22.70 per share

• As of September 30, 2008, the company has about 3.6 million shares remaining available for repurchase under the current authorization

Economy & Finance

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