BOCA RATON, Fla., May 14, 1998 — W. R. Grace & Co. (NYSE: GRA) today confirmed that it is considering purchasing supplemental insurance that would limit its liability for asbestos-related litigation. In response to questions at an analyst meeting, Grace Senior Vice President and Chief Financial Officer Larry Ellberger said that Grace believes the insurance, if available, could cost less than $100 million. However, the cost would depend upon the specific terms of the coverage and could be substantially less than $100 million. Grace also stated that if it determines to purchase the insurance, it may be in place by year-end 1998.

In addition, Grace reported that Chairman, President and Chief Executive Officer Albert J. Costello plans to retire around year-end. Grace said that its Board of Directors is conducting a search of internal and external candidates to succeed Costello and hopes to announce a successor by the end of the 1998 third quarter.

Grace is a leading global supplier of catalysts and silica products, specialty construction chemicals and building materials, and container sealants and coatings. With annual sales of approximately $1.5 billion, Grace has 6,300 employees and operations in more than 40 countries.

For more information, visit Grace's Web site at www.grace.com.