Grace Davison Announces Pricing Actions to Offset Inflation Costs

COLUMBIA, Md.--(Business Wire)--
Grace Davison, an operating segment of W. R. Grace & Co.
(NYSE:GRA), has announced that, effective August 1, 2008, it is
implementing price increases and/or surcharges of up to 20% across
product lines, as existing contracts allow. This move is in response
to unprecedented raw material and energy inflationary pressures and is
in addition to specific product price increases implemented by Grace
Davison product groups earlier in 2008. Energy and key raw material
costs supporting the Grace Davison product portfolio include metals,
inorganic chemicals and hydrocarbon materials.

"We continue to drive improvements in productivity and processing
efficiencies, which have only partially offset this extraordinary and
volatile inflation," said Greg Poling, President of Grace Davison.
"Previous measures are insufficient against the current trend of
rapidly escalating costs. We will continue to work closely with our
customers to provide our high level of product quality and technical
support, and to assist them with managing their own inflationary
pressures."

Grace is a leading global supplier of catalysts and other products
to petroleum refiners; catalysts for the manufacture of plastics;
silica-based engineered and specialty materials for a wide-range of
industrial applications; sealants and coatings for food and beverage
packaging, and specialty chemicals, additives and building materials
for commercial and residential construction. With annual sales of more
than $3.1 billion, Grace has about 6,500 employees and operations in
over 40 countries. For more information, visit Grace's web site at
www.grace.com.

This announcement contains forward-looking statements, that is,
information related to future, not past, events. Such information
generally includes the words "believes," "plans," "intends,"
"targets," "will," "expects," "anticipates," "continues" or similar
expressions. For these statements, Grace claims the protection of the
safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Grace is subject to risks
and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements or that could
cause other forward-looking information to prove incorrect. Factors
that could cause actual results to materially differ from those
contained in the forward-looking statements include: Grace's
bankruptcy, plans of reorganization proposed by Grace and others,
Grace's legal proceedings (especially the Montana criminal proceeding
and environmental proceedings), the cost and availability of raw
materials and energy, Grace's unfunded pension liabilities, costs of
environmental compliance, risks related to foreign operations,
especially, security, regulation and currency risks and those factors
set forth in Grace's most recent Annual Report on Form 10-K, quarterly
report on Form 10-Q and current reports on Form 8-K, which have been
filed with the Securities and Exchange Commission and are readily
available on the Internet at www.sec.gov. Reported results should not
be considered as an indication of future performance. Readers are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date thereof. Grace undertakes no
obligation to publicly release any revisions to the forward-looking
statements contained in this announcement, or to update them to
reflect events or circumstances occurring after the date of this
announcement.

Grace Davison
Media Relations
William Corcoran
T + 1 410.531.4203
E william.corcoran@grace.com
or
Investor Relations
Susette Smith
T + 1 410.531.4590
E susette.smith@grace.com

Copyright Business Wire 2008