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RPM Offers Preliminary Comment on Insurance Coverage Case Ruling

Published on 2008-12-03. Author : SpecialChem

MEDINA, Ohio -- RPM International Inc. announced that its subsidiaries, RPM, Inc. and Bondex International, received a ruling in their pending asbestos-related insurance coverage case. Based on the substance of the ruling, the company's subsidiaries are expected to appeal the court's decision.

"While we have finally secured a ruling in this insurance coverage case, we are disappointed with the outcome. Once the judge's decision has been analyzed by counsel, we will have a better feel for the grounds of an appeal, which will be filed as expeditiously as possible. As a preliminary matter, we note that the judge appears to have based her decision on a limited state corporate law concept that does not undermine the merits of our underlying insurance contract claims. Moreover, the judge's application of this corporate law concept to insurance contracts appears to be without precedent in Ohio law," stated Frank C. Sullivan, Chairman and CEO.

"Our preliminary analysis suggests that the ruling will be appealed to the Sixth Circuit Court of Appeals. In the coming weeks, specific appellate strategies will be explored with outside counsel and we look forward to a fresh review by the appellate court," stated Mr. Sullivan. "In the meantime, it is important to recognize that this ruling will have no substantive impact on our existing asbestos accrual or related cash costs. We will continue to manage this liability challenge as we have been doing for several years," added Mr. Sullivan.

About RPM International Inc.:

RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings and sealants serving both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Day-Glo, Euco and Dryvit. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement, boat repair and maintenance, and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors.

Forward-looking statements

This press release contains "forward-looking statements" relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us, and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) general economic conditions; (b) the price, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) risks related to the adequacy of our contingent liabilities, including for asbestos-related claims; and (j) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2008, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

Source: RPM International Inc.


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