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FIBREBOARD ANNOUNCES PROPOSED ASBESTOS SETTLEMENT

 CONCORD, Calif., Aug. 30 /PRNewswire/ -- Fibreboard Corporation (AMEX: FBD) announced today a preliminary agreement on a proposed comprehensive settlement for asbestos personal injury claims. The company has reached an agreement in principle with plaintiffs' representatives and its insurers, Continental Casualty Company and Pacific Indemnity Company, on the terms of a class action settlement of all future asbestos personal injury liability claims. Fibreboard is also negotiating an agreement with Continental and Pacific, which would fully fund all existing settled and pending personal injury asbestos liabilities.
 In anticipation of finalizing these agreements, Continental and Pacific have announced their intention to increase their cumulative reserves for funding Fibreboard asbestos personal injury liabilities to more than $3 billion. Fibreboard's contribution to the class action settlement will be funded from existing reserves and other available insurance sources. The funding of this obligation will not adversely affect Fibreboard's earnings.
 If these agreements are finalized and ultimately approved by the court, Fibreboard will have no further unreimbursed expenses associated with asbestos personal injury liabilities. Fibreboard's pending insurance coverage litigation with Continental and Pacific would then be concluded.
 John D. Roach, Fibreboard's chairman and chief executive officer, said, "This is a tremendously exciting development for Fibreboard. We are optimistic that this comprehensive settlement will be rapidly finalized and ultimately approved by the court. If the agreements are completed as proposed, Fibreboard will have solved all its current and future personal injury asbestos liability problems and can function as a normal company. Removing the cloud of uncertainty created by asbestos will give us complete access to equity and debt financing sources and allow us to pursue significant expansion opportunities and acquisitions within our core business groups. For the many thousands of current and future claimants who deserve compensation for their injuries, this proposed settlement would provide significant resources to assist them and their families.
 "During the past two years while we have been working on a comprehensive settlement of asbestos personal injury claims, our operating managers have concentrated on improving day-to-day profitability at the business unit level as well as developing future strategies for their businesses. The implementation of the proposed settlement will free up capital, borrowing capacity and management attention which will be focused on further improving our operating performance and asset mix," Roach concluded.
 Fibreboard Corporation, headquartered in Concord, owns more than 80,000 acres of timberland in the Sierra Nevada mountains and manufactures lumber, hardwood plywood, moulding and millwork, agricultural container components, precision molded industrial insulation and fireproofing materials. Its Resort Operations Group owns and operates Northstar-at-Tahoe, an all season resort featuring skiing, golfing and a conference center, and Sierra-at-Tahoe, a day ski facility, both located in the Sierra Nevada mountains of California.
 -0- 8/30/93
 /CONTACT: Steve DeMaria of Fibreboard, 510-686-0700/
 (FBD)


CO: Fibreboard Corporation ST: California IN: PAP SU:

MP-PS -- NY015 -- 6914 08/30/93 07:55 EDT
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Publication:PR Newswire
Date:Aug 30, 1993
Words:475
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