Helena, Montana, April 12, 2000

Grace officials announced the completion of a program covering medical expenses for Libby residents diagnosed with asbestos-related diseases.

"This plan is unique, and we are excited about it. We think we've developed a program that's accessible, really easy to use and nonbureaucratic, " said Bill Corcoran, Grace vice president for public and regulatory affairs.

The plan covers 100% of medical, prescription and pre-approved home health or hospice care for enrolled individuals. Former workers of the Libby vermiculite mine and mill, their spouses and children who lived with them at the time of their employment, and Libby residents who lived or worked within a 20-mile radius of the mine or mill for a least a year will be covered.

"We consider this a Libby-centric program. People can enroll right there, and it will be retroactive to Jan. 21, the date we announced our intention to create a medical plan," noted Corcoran.

The voluntary plan will require a physician's diagnosis of an asbestos-related disease before anyone can enroll in the program. No second opinion is required. The program also covers the costs of prescribing smoking deterrents, because smoking is known to further aggravate asbestos-released diseases. A third-party administrator, Health Network America of New Jersey, will oversee the program.

Grace expects about 200 to 400 people to enroll initially and said residents who have pending litigation with Grace and qualify as having an asbestos-related disease will still be eligible for the program.

"This plan is very unique, and to my knowledge, a program like this has not been set up by other employers before," stated John Forgach, Grace's senior benefits counselor.

The company has made no estimates as to how much the program is going to cost, but Corcoran said, "We're committed to put into it whatever it's going to be."

Grace closed the mine in 1990.