Federal Insurance Co.

March 28, 2007

New York, NY: (Mar-26-07) Quaker Chemical Corp.'s Quaker's SB Decking Inc. subsidiary filed suit against Federal Insurance Co. over whether Federal was liable to cover certain asbestos claims brought against SB Decking. In a settlement reached, Federal Insurance Co. agreed to pay $20 million to settle the asbestos insurance issue. The amount will be paid in four installments. Federal sought to be released from all future liability. Quaker will use the money to pay defense and indemnity costs related to asbestos claims against SB Decking. [BUSINESS WEEK: ASBESTOS INSURANCE]

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