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Exhibit 99.1 12 August 2004 Mr. James E. Dwyer Dear Jim, We are delighted that you have accepted this offer of employment to join
American Standard as a Corporate Officer in the capacity of President, Global
Bath & Kitchen, reporting to Fred Poses. We are all eager to work with you
during this period of significant change. This offer of employment is
contingent upon final approval of the Board of Directors of the Company. As we discussed, your annual base salary will be $475,000. You will participate
in our Annual Incentive Program (AIP) with an incentive target of 65% of base
salary. For the first year of employment, 2004, your award will be prorated by
50%. The incentives are generally paid in the first quarter of the year
following the year in which they are earned. You must be employed with the
Company at the time the AIP awards are authorized by the Management Development
& Compensation Committee of the Board in order to be eligible for the payment. You will also participate in the Long-Term Incentive Plan (LTIP) with a target
of 100% of base salary. LTIP performance cycles run three years and
customarily pay out in the first quarter following the end of the cycle. For
the 2002-2004 cycle, payable in 2005, your award will be prorated 50%. You will
be given credit for full participation in the 2003-2005 and 2004-2006 cycles.
You must be employed with the Company at the time the LTIP awards are
authorized by the Management Development & Compensation Committee of the Board
in order to be eligible for the payment. You will receive a stock option grant of 100,000 shares of American Standard
common stock under the terms of the American Standard Omnibus Incentive Plan,
with a grant price equal to the fair market value of a share of such stock on
the day you commence employment. As discussed, you will be eligible to
participate in the stock option program in 2006 with annual stock option grants
determined by the Management Development & Compensation Committee of the Board
of Directors. This does not constitute a commitment for a stock option award or
the amount of such award for any period other than the one addressed. American Standard will also provide you with a $200,000 sign-on stipend,
payable within 30 days of the commencement of your employment. This amount
will be taxable. If you voluntarily terminate employment for any reason during
the first year of your employment, you will be required to pay back 100% of
this payment. You are entitled to participate in the American Standard Benefits Program
applicable to senior executives of the Company as described in the attached
summary. You will be provided with five weeks vacation per annum under the
terms of the existing policy.




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You are also entitled to participate in the American Standard Executive
Relocation program, as described in the attached summary. To facilitate your
transition into this position, we will also provide you with up to $200,000 in
addition to the Executive Relocation program to offset any expenses you may
incur as a result of moving your family to New Jersey. This amount will be
grossed up for taxes. If you voluntarily terminate your employment, or are
terminated for Cause, within twelve calendar months following the closing on
the purchase of a new home or the securing of a long term rental, you are
required to repay to American Standard/Prudential the relocation costs (or a
percentage thereof) for which you have been reimbursed, as described in the
enclosed Relocation Reimbursement Repayment Agreement, as well as the
additional $200,000 (plus gross-up) in relocation expenses outlined above.
Please note the enclosed Relocation Expenses Reimbursement Agreement must be
signed and returned prior to the initiation of any relocation-related activity. American Standard maintains an employment-at-will policy, which means that you
or the Company can terminate your employment with or without Cause, at any time
and for any reason. There is nothing in this letter that is intended to
constitute a contract of employment for a guaranteed period of time. Cause, as
referenced herein, means gross inattention to or neglect of, or gross
negligence or incompetence in the performance of, duties properly and
reasonably assigned to you; or willful or intentional inflicting of substantial
injury upon the Company; or material waste or misuse of Company assets; or
embezzlement, dishonesty, fraud, or other acts of criminal nature; or refusal
to follow reasonable directions properly given to you by Company
representatives. This offer of employment is contingent upon your satisfactory reference and
background checks, signing the Companys Agreement Relating to Assignment of
Inventions, Non-Disclosure of Confidential Information and Code of Conduct. Jim, I expect that your decision to join the Company will be mutually
rewarding. We look forward to having you become part of American Standard in
the belief that you will form many productive and rewarding relationships. Please sign below indicating your acceptance of this offer and confirm your
anticipated commencement date. Sincerely yours, /s/Lawrence B. Costello
Lawrence B. Costello
Senior Vice President, Human Resources /s/ James E. Dwyer

Signature
    
    8/18/2004
Anticipated Commencement Date