Grace Completes Product Line Divestitures

W. R. Grace & Co. (NYSE: GRA) today announced that it has completed the sale of two product lines in separate transactions during September 2009. Total cash proceeds from the two transactions was approximately $27 million. Grace expects to report a total pre-tax gain from the two transactions of approximately $22 million in its third quarter ending September 30, 2009.

“These divestitures sharpen our product focus, and help ensure we are using our investment capital to best effect,” said Fred Festa, Grace’s Chairman, President and Chief Executive Officer.

Grace sold the membranes product line, a component of Grace Davison’s Specialty Technologies product group, to a strategic buyer for approximately $22 million. The membranes product line manufactures and sells polymer-based membranes used in natural gas separation. Grace sold the firestopping and abatement product line, a component of Grace Construction Products’ Specialty Building Materials product group, to another strategic buyer for approximately $5 million. Firestop products compartmentalize and contain fire and smoke within a building and abatement products are used for the abatement of asbestos and lead paint. Together, sales of these product lines account for significantly less than 1% of Grace’s sales.

Grace is a leading global supplier of catalysts and other products to petroleum refiners; catalysts for the manufacture of plastics; silica-based engineered and specialty materials for a wide range of industrial applications; sealants and coatings for food and beverage packaging, and specialty chemicals, additives and building materials for commercial and residential construction. Founded in 1854, Grace has operations in over 40 countries. For more information, visit Grace's web site at www.grace.com.