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News From DSFV: DuPont Shareholders for Fair Value Group Report Identifies Market Risk to DuPont Investors

News From DSFV: DuPont Shareholders for Fair Value Group Report Identifies Market Risk to DuPont Investors

Published 04-20-06

Submitted by DuPont Shareholders for Fair Value

PITTSBURGH--(BUSINESS WIRE)--April 20, 2006--News From DSFV:
DuPont's (NYSE:DD) continued use of the chemical perfluorooctanoic acid (PFOA) keeps the company at financial risk, concludes a report commissioned by DuPont Shareholders for Fair Value (DSFV).

"DuPont is prolonging the agony and the danger to its shareholders by gradually capping product content, instead of expeditiously phasing out PFOA," said attorney Sanford Lewis, the report's author.

In response to the report, a group of investors issued an open letter today asking DuPont to quickly phase out PFOA and to disclose risks from "consumer concerns, reputational damage or market fluctuations related to PFOA."

PFOA is used in the production of Teflon cookware and grease and stain repellent coatings for carpets, textiles and fast-food wrappers.
It persists in the environment and has potential health effects such as cancer, liver damage and birth defects.

The report, titled "Despite Recent Concessions to EPA, Shareholder Value Remains at Risk at DuPont," documents efforts by DuPont competitors to bring PFOA-free products to market, and shows the momentum away from PFOA-based products by retailers such as McDonalds.

It includes an eyewitness account from carpet mills where Stainmaster is applied, potentially causing major worker or environmental exposures. The report highlights potential liabilities, noting last year's DuPont lawsuit settlement for over $100 million in West Virginia related to PFOA exposures in drinking water. (A similar suit, on contamination of drinking water near DuPont's Chambers Works plant in New Jersey was filed this week.)

Despite publicity regarding EPA's PFOA Stewardship program, DuPont has only agreed with EPA to put a "cap" on the amount of PFOA in consumer products and emissions and to work toward new non-PFOA products over time.
In the meantime, DuPont faces new consumer and regulatory risks.

Last month, EPA proposed a new rule to require any company that makes certain new substances related to PFOA to file a pre-manufacture notice, based on the agency's assessment that it can no longer presume safety.
In California, a petition seeks to have PFOA listed as a carcinogen under Proposition 65, which could require companies to warn consumers before exposure to PFOA.

DSFV is an informal group of DuPont shareholders that includes Amalgamated Bank's LongView Collective Investment Fund, the United Steelworkers union ("USW"), Green Century Capital Management and the Sisters of Mercy, Merion Regional Community, Merion, PA.

The report, the letter from investors, and audio interviews with financial, legal and scientific experts are available at www.dupontshareholdersalert.org.

A resolution requesting a report on options for an expedited phase-out will be voted on by DuPont shareholders at the upcoming April 26 shareholder meeting.

(Legal Note: This communication is not a proxy solicitation, and DSFV will not accept any proxies.)


Copyright Business Wire 2006

DuPont Shareholders for Fair Value

DuPont Shareholders for Fair Value

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