Claims Program Commences in Potential Billion-Dollar Masonite Siding Settlement.

SAN FRANCISCO--(BUSINESS WIRE)--March 27, 1998--Claims forms are now available in one of the largest consumer class action settlements in history.

The nationwide class action settlement involves hardboard siding manufactured by Masonite Corporation and sold to millions of homeowners across the country. Hardboard siding is an engineered wood product composed of wood fiber and chips that are mixed with resin and heated and compressed into a final siding product that Masonite has marketed to consumers across the country under a number of names. The complaint, which was originally filed in December 1994, alleged that Masonite hardboard siding is defectively designed and will rot, buckle, discolor, deteriorate and otherwise not perform under normal weather conditions.

On Nov. 15, 1995, the Circuit Court certified a nationwide plaintiff class, consisting of all owners of homes or structures on which Masonite hardboard siding has been installed and incorporated between Jan. 1, 1980 and Jan. 15, 1998.

Representing plaintiffs as class counsel were Lieff, Cabraser, Heimann & Bernstein, LLP of San Francisco; McRight, Jackson, Dorman, Myrick & Moore of Mobile, Ala.; Cunningham, Bounds, Yance, Crowder & Brown of Mobile, Ala.; Doffermyre, Shields, Canfield, Knowles & Devine of Atlanta, Ga.; Cohen, Milstein, Hausfeld & Toll, PLLC of Washington, D.C.; and Levy, Ram & Olson, LLP of San Francisco.

In August and September 1996, a month-long Phase I jury trial was held in Mobile, Alabama on the factual issue of whether Masonite hardboard siding is inherently defective. On September 13, 1996 the jury returned its verdict, finding on four of five product defect tests that Masonite hardboard siding is defective, and on the fifth product defect test that it is not. A Phase II trial was set to commence in July of 1997 on the remaining liability issues and damages. Settlement negotiations were conducted intensively, over a period of many months, and resulted in an announcement that the case had settled on the eve of the Phase II trial. On January 15, 1998, the Circuit Court granted final approval to the settlement.

Under the terms of the settlement, Masonite and its parent company, International Paper Company, will pay all timely claims filed by class members for siding that qualifies as damaged under the settlement, with no total monetary limit or cap. For class members who own homes or structures on which Masonite hardboard siding was installed or incorporated between January 1, 1980 and December 31, 1989, there is a seven-year claims period running until January 15, 2005; for class members who own homes or structures on which Masonite hardboard siding was installed or incorporated between January 1, 1990 and the present, the claims period runs until January 15, 2008.

Plaintiffs' attorney Richard Dorman, of Mobile, Alabama, stated, "This settlement is a tremendous victory for millions of homeowners. The settlement provides that class members will receive compensation from defendants for damages they have sustained as a result of their Masonite hardboard siding in an amount that exceeds Masonite's liability under its express warranty. We encourage homeowners to take advantage of the settlement by filing claims."

The compensation formula is based on the square footage of damaged siding on the class member's home, as determined by an independent inspector, multiplied by geographically specific repair and replacement costs, which includes all labor and repair costs and painting. Class members can use this money to replace their siding or for any other purpose. Plaintiffs' attorney Jonathan Selbin of San Francisco said that, "Based on our experience in similar cases, the typical amount class members can expect to receive, and the fact that there are an estimated 4-5 million homeowner class members, we expect that the settlement could well top $1 billion when all claims are paid."

Class members who previously reached settlements with Masonite under its warranty program (without the direct involvement of an attorney) are entitled to participate in the settlement and receive the difference, if any, between what they received under the warranty and what they would receive under the settlement. This holds true even for class members who signed releases of all claims against Masonite.

In addition, class members who previously made unreimbursed expenditures to repair or replace their Masonite hardboard siding are entitled to compensation under the settlement upon submission of documentation that they had damage related to their Masonite siding, and of the cost of the work performed.

Settlement implementation has begun, and claims forms are now available. To request a claims form, or for more information, class members should call 800/330-2722, or can visit the official Masonite Claims web site at www.masoniteclaims.com.

CONTACT: Lieff, Cabraser, Heimann & Bernstein

Jonathan Selbin, 415/956-1000

www.lchb.com

[e-mail]

or

Cunningham, Bounds, Yance, Crowder & Brown

Richard Dorman, 334/471-6191