L-P INNERSEAL Early Payment Program update
1/4/1999

Because funding has not keep pace with claims filed homeowners are experiencing long delays in receiving payment. Under the original payment schedule it could be as long as 4 1/2 years! As of September 1998 some $300 million of approved claims were waiting payment. To date L-P has paid $195 million into the settlement fund, and is obligated to pay another $80 million over the next four years for a total of $275 million. L-P has two $50 million additional discretionary payments it may elect to make.

Claimants who are scheduled to receive payment from the remaining $80 million over the next four years will receive their payment immediately at a discounted rate of 9% per annum prorated monthly. Claimants who do not wish to participate in the early payment, and who do not "cash" their early payment check within 60 days from the date of the check will remain subject to the original terms of the settlement and will be paid in accordance with its terms.

Because claims have exceeded funding and the long delay in receiving payments under the original agreement it is expected that most claimants will elect to take the early payment at the discounted rate.

Claimants can obtain additional information by calling the Litigation Claims Administrator at 1 (800) 245-2722 or at the website at www.lpsidingclaim.com.