Faces 535 Pending Asbestos Claims as of June 2002 ------------------------------------------------- Published September 20, 2002 American Biltrite Inc. says it is co-defendant with many other makers and distributors of asbestos-containing products in approximately 535 pending claims involving approximately 1,471 individuals as of June 30, 2002. The claimants allege personal injury from exposure to asbestos or asbestos-containing products. The company estimates that its range of probable and estimable undiscounted losses for asbestos related claims is $15.6 million to $27.8 million before considering insurance recoveries, which it expects will fully cover the liability. Its asbestos liabilities and insurance recoveries are: June 30, December 31, 2002 2001 --------- ------------ (In thousands) Insurance for asbestos-related liabilities 59,508 60,787 Asbestos-related liabilities 68,627 68,627 Activity related to Six Months Ended Year Ended asbestos claims: June 30, 2002 December 31, 2001 ------------------ ---------------- Beginning claims 464 330 New claims 94 189 Settlements (4) (15) Dismissals (19) (40) --- --- Ending claims 535 464 === === COMPANY PROFILE American Biltrite Inc. (AMEX: ABL) 57 River St. Wellesley Hills, MA 02481-2097 Phone: 781-237-6655 Fax: 781-237-6880 Web site: http://www.americanbiltriteinc.com Employees : 2,850 Revenue : $ 418,261,000 Net Income (Loss) : $ 2,816,000 Assets : $ 372,764,000 Liabilities : $ 295,516,000 No. Of Asbestos Claims : 535* Estimated Asbestos Liabilities : $ 68,627,000* Insurance Recoveries : $ 59,508,000* (For the year ended December 31, 2001) (*As of June 30, 2002) Business Description: American Biltrite Inc. produces both floor coverings and jewelry. ABI gets about 55% of its sales from its controlling ownership of Congoleum (vinyl sheet and tile) and its wholly owned subsidiary Janus Flooring (hardwood floors). It produces jewelry through its 95% control of costume-jewelry supplier K&M Associates. ABI also makes industrial products such as adhesive-coated, pressure-sensitive papers used to protect materials during handling. The company's American Biltrite (Canada) subsidiary makes rubber and vinyl flooring and other products such as conveyor belts, truck and trailer splashguards, and sheet rubber. Cooper Industries Inc., which makes electrical products, tools, hardware and metal support products, says it stands to assume liabilities from thousands of asbestos cases stemming from its discontinued businesses, including the Abex product line obtained from Pneumo-Abex Corp. The businesses were operated through Cooper's two subsidiaries whose stock was sold to Federal-Mogul Corp. in October 1998 under a Purchase and Sale Agreement. Cooper says it faces potential exposure for asbestos liabilities in the event Federal-Mogul, which filed for Chapter 11 bankruptcy petition on October 1, 2001 to resolve burgeoning asbestos claims, rejects the 1998 agreement. From August 28, 1998 through June 30, 2002, a total of 81,099 Abex Claims were filed, of which 17,782 claims have been resolved leaving 63,317 Abex claims pending at June 30, 2002, that are the responsibility of Federal-Mogul. During the six months ended June 30, 2002, 5,947 claims were filed and 808 claims were resolved. Since August 28, 1998, the average indemnity payment for resolved Abex claims was $912 before insurance. A total of $32.2 million was spent on defense costs for the period August 28, 1998 through June 30, 2002. Historically, existing insurance coverage has provided 50% to 80% of the total defense and indemnity payments for Abex claims. With Federal-Mogul's bankruptcy filing, all pending asbestos litigation of Pneumo Abex Corp. and Wagner Electric Co. is stayed, and no party may take any action to pursue or collect on such asbestos claims absent specific authorization of the Bankruptcy Court or the High Court. Federal-Mogul estimates that combined liabilities from Abex and Wagner cases was $216.6 million for claims currently pending and those which were reasonably estimated to be asserted and paid through 2012. Cooper says Abex and Wagner maintained product liability insurance coverage for most of the time that they manufactured products that contained asbestos. COMPANY PROFILE Cooper Industries Ltd. (NYSE: CBE) 600 Travis, Ste. 5800 Houston, TX 77002 Phone: 713-209-8400 Fax: 713-209-8995 Web site: http://www.cooperindustries.com Employees : 30,500 Revenue : $ 4,209,500,000 Net Income : $ 231,300,000 Assets : $ 4,611,400,000 Liabilities : $ 2,588,200,000 No. of Asbestos Claims : 81,099 Insurance Recoveries : $ 216,600,000 (For the year ended December 31, 2002) Business Description: Cooper makes electrical products, tools, hardware, and metal support products. The company's electrical products (more than 80% of sales) include electrical and circuit-protection devices, residential and industrial lighting, and electrical power and distribution products for use by utility companies. Cooper's tool offerings include such venerable brands as Crescent wrenches and pliers, Apex impact sockets, Plumb hammers, and Weller wielding supplies. Cooper's metal support products (B-Line) include conduits and cable trays. COMPANY PROFILE Federal-Mogul Corp. (OTC: FDML) 26555 Northwestern Highway Southfield, MI 48034 Phone: 248-354-7700 Fax: 248-354-8950 Web site: http://www.federal-mogul.com Employees : 49,000 Revenue : $ 1,346,100,000 Net Income : ($25,600,000) Assets : $ 8,993,800,000 Liabilities : $ 7,309,800,000 Estimated Asbestos Liabilities : $ 1,547,300,000 Insurance Recoveries : $ 712,600,000 (For the quarter ended March 31, 2002) Business Description: Federal-Mogul Corp. is a global supplier of automotive components and sub- systems serving the world's original equipment manufacturers and the aftermarket. The company utilizes its engineering and materials expertise, proprietary technology, manufacturing skill, distribution flexibility and marketing power to deliver products, brands and services of value to its customers. Federal-Mogul is focused on the globalization of its teams, products and processes to bring greater opportunities for its customers and employees, and value to its constituents. Headquartered in Southfield, Michigan, Federal-Mogul was founded in Detroit in 1899 and today employs 49,000 people in 24 countries.