W.R. Grace to Pay for Cleanup of Asbestos Contamination in Libby, Montana

WASHINGTON, March 11 /PRNewswire-USNewswire/ -- W.R. Grace, a global supplier
of specialty chemicals, has agreed to pay $250 million, the highest sum in the
history of the Superfund program, to reimburse the federal government for the
costs of the investigation and cleanup of asbestos contamination in Libby,
Mont., the Justice Department and Environmental Protection Agency (EPA)
announced today.

The action settles a bankruptcy claim brought by the federal government to
recover money for past and future costs of cleanup of contaminated schools,
homes and businesses in Libby.

The EPA has been removing asbestos-contaminated soils and other materials in
and near Libby since May 2000. The federal government filed suit against W.R.
Grace in March 2001 to recover its investigation and cleanup costs under the
Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), commonly known as the "Superfund" law. The lawsuit also named
Kootenai Development Corporation -- a W.R. Grace subsidiary -- as a defendant
due to its ownership of three contaminated properties in Libby.

In 2003, the federal district court in Montana awarded EPA over $54 million
for cleanup costs incurred by EPA through Dec. 31, 2001. That award has not
been paid due to W.R. Grace's bankruptcy. Today's settlement resolves the
2003 judgment as well as continuing cleanup costs EPA has incurred since Dec.
31, 2001 and will incur in the future. EPA will place the settlement proceeds
into a special account within the Superfund that will be used to finance
future cleanup work at the site.

W.R. Grace owned and operated a vermiculite mine and vermiculite processing
facilities in and near Libby from 1963 to 1990. The vermiculite ore was
contaminated with asbestos. Vermiculite and asbestos have been found in
various locations in and around Libby.

Asbestos, a recognized human carcinogen, is known to cause lung cancer and
mesothelioma, a lethal tumor of the lining of the chest and abdominal
cavities. Exposure to asbestos can also cause asbestosis, a disease
characterized by scarring of the lung.

W.R. Grace and 61 affiliated companies filed for bankruptcy in April 2001. In
March 2003, EPA filed a bankruptcy claim against the company to recover past
and future cleanup costs. W.R. Grace has corporate headquarters in Columbia,
Md., and employees in nearly 40 countries. The company manufactures
construction chemicals, building materials and chemical additives, among other
things.

The settlement requires W.R. Grace to pay the $250 million within 30 days of
bankruptcy court approval. The settlement agreement will be lodged in the
U.S. Bankruptcy Court for the District of Delaware and is subject to court
approval after a 30-day public comment period. A copy of the settlement
agreement is available on the Justice Department Web site at
http://www.usdoj.gov/enrd/Consent_Decrees.html.

SOURCE U.S. Department of Justice; U.S. Environmental Protection Agency

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007