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USG FINALIZES DISCLOSURE STATEMENT, SOLICITATION PROCESS TO BEGIN SHORTLY, VOTING DEADLINE OF MARCH 15, 1993 SET.

 CHICAGO, Feb. 8 /PRNewswire/ -- USG Corporation (NYSE: USG) announced today that it has finalized the disclosure statement which will be used for voting on its prepackaged bankruptcy plan. The disclosure statement and ballot materials will be mailed in the next few days for voting by all banks, 13-1/4 percent bondholders, 16 percent bondholders and shareholders who were holders of record of these securities on Jan. 20, 1993. A voting deadline of March 15 has been established.
 After giving effect to a one-for-fifty reverse split of the corporation's common stock, the Prepackaged Bankruptcy Plan proposes the following exchanges:
 -- Each $100 principal amount of 7-3/8 percent Senior Notes due 1991 would be exchanged for $750 principal amount of 8 percent Senior Notes due 1995, and $250 principal amount of 9 percent Senior Notes due 1998.
 -- Each $1,000 principal amount of 13-1/4 percent Senior Subordinated Debentures due 2000 would receive 50.81 shares of common stock.
 -- Each $1,000 principal amount of 16 percent Junior Subordinated Debentures due 2008 would receive 11.61 shares of common stock and 5.42 warrants each to purchase one share of common stock at a strike price of $16.14 per share.
 -- Holders of Common Stock will retain their existing shares of Common Stock, subject to the reverse stock split and the issuance of New Common Stock and New Warrants to holders of the 13-1/4 percent Senior Subordinated Debentures and 16 percent Junior Subordinated Debentures under the Prepackaged Plan.
 The Prepackaged Plan also provides that the Bank Debt will be restructured, that holders of Bank Term Loans will have the opportunity to exchange a portion thereof for an equal principal amount of the Corporation's 10-1/4 percent Senior Notes due 2002, that certain cash payments will be made to Holders of Bank Claims and that the Extended Revolving Credit Facility will become available, all on the terms set forth in the Disclosure Statement.
 Requests for copies of the final Disclosure Statement, and any questions regarding the plan or the completion of ballots should be directed to the information agent, Kissel-Blake at 1-800-554-7733. Their address is:
 Kissel-Blake Inc.
 25 Broadway
 New York, NY 10004
 USG Corporation is a Fortune 250 holding company whose subsidiaries are market leaders in their key product groups of gypsum wallboard, joint compound and related gypsum products, ceiling tile and grid and building products distribution.
 -0- 2/8/93
 /CONTACT: USG Corporate Communications, 312-606-4124; or Investor Communications 312-606-5594/
 (USG)


CO: USG Corporation ST: Illinois IN: INS SU:

SH -- NY045 -- 3994 02/08/93 10:25 EST
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Date:Feb 8, 1993
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