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GRACE ANNOUNCES SECOND CIRCUIT ASBESTOS OPINION

 BOCA RATON, Fla., Sept. 2 /PRNewswire/ -- W. R. Grace & Co. (NYSE: GRA) today announced that the United States Court of Appeals for the Second Circuit has issued an opinion regarding the availability of insurance coverage with respect to Grace's asbestos litigation and claims.
 Grace stated that the opinion relates to a lower court ruling that Grace's insurance carriers' obligation to defend and indemnify Grace for damages and litigation costs is based on a "discovery of damage" trigger. The Court of Appeals reversed the lower court's ruling and instead adopted a trigger based on the date of installation of asbestos- containing materials. A Grace spokesperson said that the company was surprised by the Court's adoption of a date of installation trigger, since it is contrary to the overwhelming weight of authority nationally and since a date of installation trigger was advocated neither by Grace nor by any of its insurance carriers. For this and other reasons, Grace believes the decision concerning the trigger is erroneous and plans to seek judicial review of that decision. Grace said that while it is still reviewing the Second Circuit's opinion, it believes that the opinion, if upheld, would have the effect of reducing Grace's available property damage insurance coverage below the more than $1.5 billion previously reported by Grace.
 Brian J. Smith, Grace's executive vice president and chief financial officer, stated, "Grace has had more than 10 years' experience in defending its asbestos property damage litigation with virtually no recovery from its insurance carriers until just recently." Smith added, "Based on this experience and other factors, and notwithstanding the Second Circuit decision, we are confident that we can continue to vigorously defend our asbestos litigation, maintain our planned cash flow and upgrade our operations consistent with the strategic plan announced in 1991."
 Grace is the world's largest specialty chemicals company with a leadership position in specialized health care.
 -0- 9/2/93
 /CONTACT: Chuck Suits of W. R. Grace, 407-362-2600 or 800-GRACE99/
 (GRA)


CO: W. R. Grace & Co. ST: Florida IN: CHM SU:

AW-PC -- FL009 -- 8492 09/02/93 14:44 EDT
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Publication:PR Newswire
Date:Sep 2, 1993
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