SADDLE BROOK, N.J., May 9, 2001 (PRIMEZONE) -- Sealed Air Corporation (NYSE:SEE) provided an update today regarding the application filed by W. R. Grace & Co. (Grace) in Grace's bankruptcy proceeding in Delaware seeking to stay all actions related to Grace asbestos liabilities and fraudulent transfer claims in which Sealed Air has been named as a result of the 1998 transaction between Sealed Air and Grace. The court issued an order dated May 3, 2001, staying all such filed or pending actions against Sealed Air. Grace has stated that it will seek to stay additional actions if filed after the date of the order. Sealed Air believes that Grace's filing for reorganization may provide a single forum in which all litigation related to Grace asbestos liabilities as well as fraudulent transfer claims might be resolved.
These claims relate to the 1998 corporate transaction between Sealed Air and Grace, two independent companies, in which Sealed Air acquired Grace's Cryovac packaging business (Cryovac). In that transaction, Grace and its subsidiaries retained all Grace liabilities whether accruing or occurring before or after the transaction, other than liabilities arising from or relating to Cryovac's operations. Neither Sealed Air nor Cryovac has ever produced or sold asbestos-related products.
As it has stated previously, Sealed Air believes that it has strong defenses against these claims and intends to defend its interests vigorously. The Grace bankruptcy proceeding is in the very early stages and could take a few years to complete. In connection with Grace's bankruptcy proceeding, Sealed Air could incur additional costs in the resolution of claims against the Company that could become material to its results of operations and financial position.
Sealed Air is engaged primarily in the manufacture and sale of a complementary line of food, protective and specialty packaging materials and systems, including such widely recognized brands as Bubble Wrap(r) air cellular cushioning, Jiffy(r) protective mailers and Cryovac(r) food packaging products. To view the Company's latest financial news online via the World Wide Web, visit http://www.cfonews.com/see.
Certain statements made by the Company in this press release may be forward-looking statements. These statements include comments as to future events and trends affecting the Company's business, which are based upon management's current expectations and are necessarily subject to risks and uncertainties, many of which are outside the control of the Company. Forward-looking statements can be identified by such words as "expects," "intends," "plans," "estimates" and similar expressions. Actual results may differ materially from these expectations due to a number of factors, including changes in economic, business and market conditions in the geographic areas in which the Company conducts business, factors affecting customers, the success of new products, raw material costs and legal proceedings. A more extensive list and description of these factors can be found under the heading "Forward-Looking Statements" in Management's Discussion and Analysis of Results of Operations and Financial Condition, which appears in the Company's Annual Report on Form 10-K for the year ended December 31, 2000, and in the Company's other publicly available filings with the Securities and Exchange Commission.