Crown Holdings Comments on New Texas Asbestos Law

PHILADELPHIA, June 12 /PRNewswire-FirstCall/ -- Crown Holdings, Inc. (NYSE: CCK) noted today that the Texas Legislature has passed and Governor Rick Perry of Texas signed into law general tort reform legislation intended to protect defendants against unfair lawsuits. The bill includes a provision that limits the asbestos-related liabilities of companies such as Crown's wholly-owned subsidiary, Crown Cork & Seal Company, Inc., that allegedly incurred those liabilities because they are successors by corporate merger to companies that had been involved with asbestos.

The new Texas legislation, which applies to future claims and pending claims for which a trial has not yet commenced, caps asbestos-related liabilities at the total value of the predecessor's assets adjusted for inflation. Crown Cork has paid significantly more for asbestos related claims than the total value of its predecessor's assets. Crown Cork estimates that pending claims in Texas currently constitute approximately 25% to 30% of total claims outstanding. For the near term, the Company does not anticipate that the new legislation will affect its current accrual for asbestos liabilities. Crown Cork intends to integrate the legislation into its claims defense strategy.

Cautionary Note Regarding Forward-Looking Statements

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve a number of risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. The new asbestos legislation has not yet been reviewed in any court, and there can be no assurances regarding the ultimate effect of the legislation on the Company. Important factors that could cause the statements made in this press release to differ include the actual outcome of any litigation concerning the validity or effect of the new legislation, the ability of Crown Cork to successfully integrate the legislation into its claims defense strategy and the extent to which asbestos claimants commence litigation in jurisdictions other than Texas. In addition, other factors have been discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2002 and in subsequent filings. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

Crown Holdings, Inc. through its affiliated companies is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania.

SOURCE Crown Holdings, Inc.