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GELMAN SCIENCES SETTLES WITH THE STATE OF MICHIGAN ENDING ITS 4-YEAR-OLD ENVIRONMENTAL LAWSUIT

 GELMAN SCIENCES SETTLES WITH THE STATE OF MICHIGAN
 ENDING ITS 4-YEAR-OLD ENVIRONMENTAL LAWSUIT
 ANN ARBOR, Mich., Oct. 26 /PRNewswire/ -- Gelman Sciences (AMEX: GSC) announced that it has reached agreement with the state of Michigan Department of Natural Resources, ending a 4-year-old environmental lawsuit. The state sued Gelman Sciences in 1988 over groundwater contamination surrounding the company's Ann Arbor microporous membrane manufacturing facility. The state attorney general's office and Gelman Sciences today submitted a Consent Judgment which was signed by Washtenaw County Circuit Court Judge Patrick J. Conlin.
 As part of the terms of the Consent Judgment, Gelman Sciences agrees to clean up groundwater contaminated with 1,4-dioxane and to reimburse the state for costs it has incurred.
 James Fahrner, vice president and chief financial officer, said that the cleanup plan offers several options and, therefore, it is difficult to determine the cost of the cleanup. "Based on our most current projections," said Fahrner, "we estimate that the cleanup will cost Gelman Sciences about $4 million over a 10-year period."
 The company recognized the $4 million charge in its last fiscal year as recorded in its April 1992 Quarterly Financial Report to Shareholders. The cash outflow associated with the cleanup program costs will occur over the expected length of the program.
 The company received approval from the city of Ann Arbor earlier in September to use the city's sanitary sewer system to dispose of contaminated groundwater after it is treated to low levels of 1,4- dioxane approaching 10 parts per billion. The Department of Natural Resources has established 2,000 parts per billion as a safe level for human contact, so the Gelman Sciences cleanup plan, at 10 parts per billion, is a very conservative one. Gelman Sciences used 1,4-dioxane in its manufacturing process until 1986, when local residential wells were found to be contaminated. 1,4-dioxane is a very common compound found in hundreds of everyday household products like laundry detergents, shampoos, cosmetics, cooking oils, tanning lotions, to name a few. The compound also occurs naturally in tomatoes. It has not been proven to produce cancer in humans.
 Gelman Sciences Chairman and Chief Executive Officer Charles Gelman said, "The settlement of this major lawsuit should remove the cloud of uncertainty that has affected the company's stock value and shaded its operating future. The cleanup plan is affordable for the company and fits our cash-flow projection. We are anxious to move ahead with the approved cleanup plan."
 Gelman Sciences is a leading manufacturer and marketer of microfiltration products used in industries, and the health care field.
 -0- 10/26/92
 /CONTACT: Robert L. Buker, vice president of Corporate Communications, Gelman Sciences, 313-665-0651/
 (GSC) CO: Gelman Sciences, Inc.; Michigan Department of Natural Resources ST: Michigan IN: MTC SU:


SB -- DE026 -- 4959 10/26/92 15:19 EST
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Publication:PR Newswire
Date:Oct 26, 1992
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