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STATEMENT BY RAY J. GROVES, CHAIRMAN OF ERNST & YOUNG

 WASHINGTON, Nov. 23 ~PRNewswire~ -- Ray J. Groves, chairman of Ernst & Young, today issued the following:
 This comprehensive settlement closes a difficult chapter in the life of Ernst & Young. Although this is a costly settlement, it is the only realistic solution to an endless stream of lawsuits that would have been even more expensive to defend.
 Contesting each lawsuit would have meant many years of almost continuous litigation -- and an unacceptable drain of the firm's time and financial resources. Moreover, even favorable court decisions are often little more than moral victories that require substantial outlays of time and money.
 The decision to settle reflects a practical assessment of what makes sense for the firm as a business organization. Resolving all outstanding and potential government claims relating to failed financial institutions allows Ernst & Young to continue to devote its resources and energy to the business of serving our clients.
 We made an economic decision to approach the government in an effort to free both sides from the uncertainty and risk of litigation. The negotiation was difficult, but it produced a comprehensive agreement on a $400 million settlement that resolved all of our differences in a single settlement. The firm will pay $100 million and insurance will cover the balance of $300 million.
 Ernst & Young's financial future is sound. By putting this matter behind us, we can maintain our leadership role in the accounting profession and continue our commitment to providing the highest quality service to our clients.
 Today, we are turning the page, determined to move forward in a team effort by the 20,000 talented and loyal Ernst & Young people across America who provide outstanding service to our clients.
 -0- 11~23~92
 ~CONTACT: Mort Meyerson for Ernst & Young, 202-429-7048 (Nov. 23 only) or 212-773-6116 (from Nov. 24)~


CO: Ernst & Young ST: District of Columbia IN: FIN SU:

IH -- DC029 -- 0791 11~23~92 18:19 EST
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Publication:PR Newswire
Date:Nov 23, 1992
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