NEWS RELEASE

FOR IMMEDIATE RELEASE

                        AMERICAN STANDARD COMPANIES INC.
                 REPORTS 17% INCREASE IN 1997 EARNINGS PER SHARE

     Piscataway,  NJ -  February  3, 1998 -  American  Standard  Companies  Inc.
(NYSE:ASD) today announced that full year 1997 diluted per share earnings before
extraordinary   item  (and  before  a  write-off  of   purchased   research  and
development) were a record $2.76, an increase of 17% over 1996 diluted per share
earnings of $2.36 (excluding a non-cash asset impairment charge). Fourth quarter
1997  diluted  per share  earnings  were $.62,  an  increase  of 11% over fourth
quarter 1996 diluted per share  earnings of $.56.  These results are  consistent
with the Company's previously announced expectations.

     Mr. Emmanuel A. Kampouris, Chairman, President and Chief Executive Officer,
remarked, "The Company posted solid growth in sales and earnings in 1997 despite
the  adverse  effect of  cooler  than  normal  weather  on the air  conditioning
business  in both the U.S.  and  Europe and the  effects  of  foreign  exchange,
initially in Europe and more recently as a result of dramatic  events in the Far
East. Our ability to partially overcome these adversities  clearly validates our
strategies  built on our global  diversity and leadership  positions  worldwide,
which  provide the  foundation  for strong sales and earnings  growth.  While we
expect weakness in the Far East outside China to continue and have adopted plans
to monitor and limit the impact, we also believe our improvements elsewhere will
continue."

     Total Sales for 1997 reached a record $6.0 billion,  an increase of 4% from
$5.8  billion in 1996 (an 8% increase  excluding  the $218  million  unfavorable
foreign exchange effect). Excluding foreign exchange effects:

o    Air Conditioning  Products sales,  although weakened by cooler than average
     temperatures in important markets,  increased 5% to $3.6 billion.  Strength
     in the  U.S.  commercial  businesses,  both  applied  systems  and  unitary
     products,   more  than  offset  a  decline  in  the  residential  business.
     International  sales also grew due to strong sales growth in Latin  America
     and modest growth in Europe and the Middle East.

o    Plumbing  Products  sales  increased 5% to $1.4 billion  reflecting  strong
     markets in Latin America,  increased sales through expanding major U.S home
     improvement  retailers and the effect of  consolidating  the  operations in
     China since the  acquisition of a majority  interest at the end of October.
     Sales matched the prior year level in Europe and,  despite recent  economic
     weakness, Far East sales for the full year (excluding China) were flat.

o    Automotive Products sales increased 14% to $952 million driven by continued
     strengthening in European  commercial  vehicle  production,  higher product
     content per vehicle and increased export sales.  Sales of anti-lock braking
     systems (ABS) to the Company's U.S.  marketing  joint venture rose sharply,
     reflecting the first-phase  implementation of federal regulations requiring
     ABS systems on all new heavy trucks,  together with a rebound in heavy-duty
     truck production.
<PAGE>

o    Medical  Systems sales were $50 million,  reflecting the acquisition of the
     diagnostic businesses at the end of June.

     Operating  Income in 1997 (excluding the write-off of purchased  in-process
research and development) was $590 million,  an increase of 3% from $573 million
in 1996,  excluding an asset  impairment  charge.  Operating income increased 7%
excluding  the $22 million  unfavorable  effect of foreign  exchange.  Excluding
foreign exchange effects:

o    Air Conditioning  Products operating income rose 3% to $364 million despite
     cooler than normal  weather in both the U.S. and Europe.  Increased  volume
     and improved margin in both the applied and unitary  commercial  businesses
     more than offset weather related declines in both the U.S.  residential and
     European businesses and the effect of economic weakness in the Far East.

o    Plumbing  Products  operating  income  increased  18% to  $119  million  on
     increased  volume  and  improved  margin  in both  Latin  America  and U.S.
     operations.  Margin expansion in Europe,  primarily from cost reductions in
     France,  also contributed to the increase.  The Company's China operations,
     consolidated for only the final two months of the year,  offset the effects
     of lower volume and margin elsewhere in the Far East.

o    Automotive  Products  operating  income  increased  14%  to  $127  million.
     Increased  volume and improved margin in European  operations was partially
     offset by lower margin in Brazil and start-up costs of new,  majority-owned
     ventures in the U.S. and China.

o    Medical Systems operating loss reflected continued costs of development and
     of integrating operations of the diagnostic businesses acquired in June.

     Write-off of Purchased Research and Development of $90 million results from
the  accounting  for the June 30, 1997  acquisition  of the  medical  diagnostic
businesses.

     Interest  Expense  declined  by $6  million  from the  prior  year as lower
interest  rates  achieved  through  the  Company's  1997  Credit  Agreement  and
redemption of $250 million 11 3/8% Senior Debentures in May 1997, financed under
the Credit  Agreement,  offset the effect of  increased  debt arising from share
repurchases and acquisition of the medical diagnostic businesses.

     Equity in Net Income of  Unconsolidated  Joint  Ventures  increased  to $12
million  compared  to 1996  income of $3  million  reflecting  strong  growth of
Automotive Products' U.S. joint venture,  benefits from the restructuring of Air
Conditioning Products' scroll compressor joint venture and increased income from
the Company's  financing joint venture  established in 1996.  Plumbing Products'
rapidly expanding  businesses in China also contributed to the increase prior to
the  consolidation  of such  operations  at the end of October  when the Company
acquired controlling interest in those businesses.

     Corporate and Other Expense was essentially flat.

     Income Taxes were $117  million,  or 35.8% of pretax  income  excluding the
write-off  of  purchased  R&D,  compared  to 35.6% for 1996  excluding  an asset
impairment charge.
<PAGE>

     Effective  December 31, 1997,  the Company  adopted  Statement of Financial
Accounting Standards No. 128, "Earnings per Share" ("FAS 128"), which simplifies
the  standards  for  computing  earnings  per  share,   changes  the  manner  of
presentation  on the income  statement and requires the restatement of all prior
periods presented. Accordingly, the Company has reported 1997 diluted income per
common share of $2.76  (excluding a write-off of purchased  in-process  research
and  development   related  to  the  acquisition  of  the  medical   diagnostics
businesses),  compared  with  restated  1996 diluted  income per common share of
$2.36 (excluding an asset impairment loss).

     Overall, foreign exchange effects unfavorably impacted sales by 4%, or $218
million,  and  operating  income by 4%,  or $22  million.  Offsetting  favorable
foreign  exchange  effects in  interest,  accretion  and taxes  brought  the net
unfavorable impact of foreign exchange to an after-tax effect of $.12 per share.
Sales in the Far East (excluding China),  approximately 6% of total consolidated
sales, were down $27 million from 1996 and pre-tax income was $17 million,  down
$13 million from 1996.

     Fourth  quarter 1997 sales were $1.5  billion,  an increase of 7% from $1.4
billion  in 1996 (a 12%  increase  excluding  an  unfavorable  foreign  exchange
effect). Sales were strong for most U.S. businesses (particularly commercial air
conditioning) and for Automotive Products, with sales of the new Medical Systems
segment contributing to the gain. Far East sales, excluding China, declined.

     Operating  income  for the  fourth  quarter  of 1997 was $138  million,  an
increase of 6% from $130 million in the 1996  quarter (a 12% increase  excluding
unfavorable foreign exchange effects).  Air Conditioning gained 14% and Plumbing
6% (despite  weakness  in the Far East)  which,  together  with a small gain for
Automotive, were partly offset by a loss for Medical Systems.

     American Standard is the global,  diversified manufacturer of Trane (R) and
American  Standard(R) air conditioning  products,  American  Standard(R),  Ideal
Standard(R),  Standard(R) and Porcher(R) plumbing products,  WABCO(R) commercial
and utility  vehicle  braking  and control  systems,  LARA(TM)  and  Copalis(TM)
medical  diagnostic  systems and DiaSorin(TM) and INCSTAR(R)  medical diagnostic
products.

For Further Information, Contact:
Ray Pipes (732) 980-6139 or,
Phil Bradtmiller (732) 980-6038

The  latest  news   release   and   corporate   information   can  be  heard  on
1-888-ASD-NEWS.  Additional information on American Standard is available on the
Company's World Wide Web site http://www.americanstandard.com


<PAGE>

<TABLE>
<CAPTION>


                        AMERICAN STANDARD COMPANIES INC.
                              SUMMARY SEGMENT DATA
                                   (Unaudited)

In millions                             Three Months Ended December 31,
                                       -------------------------------
                                      1997                           1996
                                     -------                        -------


                                          Operating                Operating
                                 Reported   Margin        Reported   Margin
                                 --------   ------        --------   ------
<S>                             <C>        <C>          <C>        <C> 

Sales
    Air Conditioning Products     $   883                $   835
    Plumbing Products                 377                    373
    Automotive Products               253                    229
      Medical Systems                  26                     --
                                    -----                  -----
                                   $1,539                 $1,437
                                   ======                 ======
Operating income (loss)
     Air Conditioning Products   $     79      8.9%       $   69      8.3%
     Plumbing Products                 33      8.8%           31      8.3%
     Automotive Products               33     13.0%           32     14.0%
     Medical Systems                   (7)     --             (2)      --
                                  -------                 ------
                                  $   138      9.0%       $  130      9.0%
                                  =======                 ======
</TABLE>
<TABLE>
<CAPTION>


                                                  Year Ended December 31,
                                                 -----------------------

                                              1997                        1996
                                              ----                       -----

                                                  Operating           Operating
                                          Adjusted   Margin   Adjusted   Margin
                                          --------   ------   --------   ------
<S>                                      <C>        <C>      <C>       <C>   

Sales
    Air Conditioning Products              $3,567               $3,437
    Plumbing Products                       1,439                1,452
    Automotive Products                       952                  916
    Medical Systems                            50                   --
                                           ------               ------
                                           $6,008               $5,805
                                           ======               ======
Operating income (loss) before  write-off
 of purchased  research and development
    and asset impairment loss
     Air Conditioning Products            $   364       10.2%   $  353    10.3%
     Plumbing Products                        119        8.3%      110     7.6%
     Automotive Products                      127       13.3%      123    13.4%
     Medical Systems                          (20)        --       (13)     --
                                          -------               ------
                                          $   590        9.8%   $  573     9.9%
                                          =======               ======


</TABLE>

<PAGE>
<TABLE>
<CAPTION>



                        AMERICAN STANDARD COMPANIES INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

In millions except
per share data                              Three Months Ended December 31,
                                           -------------------------------

                                               1997                   1996
                                               -----                 -----
<S>                                          <C>                   <C>   
Sales                                        $1,539              $   1,437

Operating income                             $  138              $     130

Equity in net income of
  unconsolidated joint ventures                   3                      6
                                               ----                   ----
                                                141                    136
Interest expense                                 48                     47
Corporate and other expenses                     21                     19
                                               ----                   ----  
Income before income taxes                       72                     70
Income taxes                                     26                     25
                                               ----                   ----  
Net income                                  $    46                  $  45
                                            =======                  =====

Net income per common share:
    Basic                                   $   .64              $     .57
                                               ====                =======
    Diluted                                 $   .62              $     .56
                                               ====                =======

Average outstanding common shares-basic        71.9                   78.5
Average outstanding common shares-diluted      74.0                   80.7
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                        AMERICAN STANDARD COMPANIES INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)

In millions except                                                   Year Ended December 31,
                                                                     -----------------------
per share data
                                                                1997                       1996
                                                                ----                       -----
                                                       Reported   Adjusted(a)    Reported  Adjusted(b)
                                                       --------   --------       --------  --------
<S>                                                   <C>        <C>            <C>       <C>   
Sales                                                    $6,008     $6,008       $5,805     $5,805

Operating income before write-off
    of purchased research and development
    and asset impairment loss                           $   590    $   590      $   573    $   573

Write-off of purchased research and development (a)          90         --           --         --
Asset impairment loss (b)                                    --         --          235         --
                                                         ------     ------       ------     ------

Operating income                                            500        590         338        573
Equity in net income of
    unconsolidated joint ventures                            12         12           3          3
                                                         ------     ------       ------     ------    
                                                            512        602         341        576
Interest expense                                            192        192         198        198
Corporate and other expenses                                 83         83          85         85
                                                         ------     ------       ------     ------    
Income before income taxes
    and extraordinary item                                  237        327          58        293
Income taxes                                                117        117         104        104
                                                            ----       ----        ----       ---
Income (loss) before extraordinary item                     120        210         (46)       189
Extraordinary loss on retirement of
    debt, net of tax                                        (24)       (24)        --         --
                                                         ------     ------       ------     ------  
Net income (loss)                                       $    96   $    186  $     (46)   $    189
                                                          =====     ======      ======      =====

Per common share (c):
  Basic:
    Income (loss) before extraordinary item              $ 1.62   $   2.85  $    (.60)  $   2.42
     Extraordinary loss on retirement of debt              (.32)      (.32)        --         --
                                                           -----      -----        ---        --
     Net income (loss)                                   $ 1.30   $   2.53  $    (.60)  $   2.42
                                                          =====     ======    ========     =====

  Diluted:
    Income (loss) before extraordinary item              $ 1.57   $   2.76  $    (.60)  $   2.36
    Extraordinary loss on retirement of debt               (.31)      (.31)       --          --
                                                           -----      -----       ---         --
    Net income (loss)                                    $ 1.26   $   2.45  $    (.60)  $   2.36
                                                         ======    =======    ========    ======

Average outstanding common shares-basic                     73.8       73.8       78.0      78.0
Average outstanding common shares-diluted                   76.2       76.2       78.0      79.8
<FN>


(a)  In connection with the June 30, 1997 acquisition of the medical diagnostics
     businesses,  the value of purchased in-process research and development was
     written off in accordance with applicable accounting rules.

(b)  Effective January 1, 1996, the Company adopted FAS 121 which resulted in an
     asset  impairment  loss of $235 million  resulting  predominantly  from the
     write-down of goodwill for which no tax benefit was available.

(c)  Earnings per common share for all periods  presented have been presented in
     accordance with FAS 128,  "Earnings per Share",  adopted effective December
     31, 1997.
</FN>
</TABLE>