Columbia, Maryland, January 20, 2000

W.R. Grace today announced a sweeping three-part health care program for people in Libby, Montana, to detect and provide medical insurance for anyone in Libby diagnosed with asbestos-related illnesses.

Under the announcement made today, Grace committed to:

• Donate $250,000 a year for as long as necessary to St. John's Lutheran Hospital to provide independent health screening to anyone in Libby who wants it;
• Assure that the hospital has the necessary infrastructure to conduct the independent screenings; and,
• Provide medical coverage to anyone in Libby who, after receiving an independent screening, is diagnosed with an asbestos-related disease.

"Grace takes its responsibilities to the people of Libby and the situation there very seriously. Libby, Montana is a unique situation deserving a unique solution. People who have concerns about their exposure to asbestos now will have an independent place to go and be tested," said Paul Norris, Chairman and Chief Executive Officer of Grace. "If anyone is diagnosed with an asbestos-related illness, they will have insurance to cover the medical costs of treating it. A further announcement about the program details will be forthcoming."

Grace purchased the former Zonolite mine in Libby, Montana in 1963 and operated the site until the mine was closed. Grace spent several million dollars to remove and control asbestos-containing dust in compliance with appropriate Federal and State laws during that time. Between its closure in 1990 and 1994, the mine was reclaimed in accordance with the Montana reclamation law. Grace sold the property in 1995.

"The program we are announcing for Libby doesn't diminish the need for national legislation to make swift and fair compensation to the true victims of exposure to asbestos. We support the bipartisan effort underway in Congress to fix the current process that the Supreme Court has urged Congress twice to fix."

Grace is a leading global supplier of catalysts and silica products, specialty construction chemicals and building materials, and container protection products. With annual sales of approximately $1.5 billion, Grace has 6,600 employees and operations in nearly 40 countries.