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DuPont Teflon-Chemical Woes Coincide With Drop in Share Price, Says DuPont Shareholders for Fair Value

Posted on: Monday, 11 July 2005, 15:01 CDT

NASHVILLE, Tenn., July 11 /PRNewswire/ -- A coalition of DuPont investors says that escalating issues regarding perfluorooctanoate, a chemical used in production of Teflon and other key DuPont products, contributed to the drop in DuPont's stock price occurring from mid-May. It urged DuPont to improve its disclosure regarding the issue, to restore investor confidence.

DuPont Shareholders for Fair Value (DSFV) is an informal coalition, holding over 438,000 shares in E.I. DuPont de Nemours. DSFV cited two recent events relating to PFOA -- a federal grand jury subpoena of DuPont and a draft EPA Science Advisory Board report on risks of PFOA on June 28 -- as factors triggering shareholder concern.

At the market open, before the subpoena was announced by DuPont on May 20, DuPont shares were trading for $47.77. The share price dropped as low as $42.60 at the market close on July 6, a drop of 10.8 percent from before the subpoena announcement.

"When the market reacts to bad news regarding chemicals used by a company, Wall Street is losing confidence," said Sanford Lewis, an attorney representing DSFV. "DuPont's management should restore investor trust by publishing a better analysis of the potential liabilities and market risks from PFOA."

DSFV has called for the company to disclose to investors: - Any undisclosed data on PFOA emissions, blood testing or drinking water testing that may flag additional DuPont liabilities. - Risks to product lines associated with regulatory studies or restrictions in Canada, Europe and elsewhere, and with consumer education occurring in the US. - A more balanced presentation of health studies showing potential risks associated with PFOA.

On May 20, 2005, DuPont announced that it had received a federal grand jury subpoena issued by the Department of Justice. Conducted by the Environmental Crimes Division, the DOJ's ongoing investigation of DuPont's disclosures to the EPA regarding PFOA could result in criminal charges that carry fines of $25,000 per day of violation, or imprisonment of not more than one year, or both.

On June 28, the Science Advisory Board to the EPA issued a draft report, critiquing the EPA's draft risk assessment of PFOA. The draft report by the Science Advisory Board found more serious health risk issues than previously acknowledged by the EPA draft or by DuPont. The Board's draft said that the weight of the evidence of carcinogenicity of PFOA was stronger than proposed in the draft EPA document, and suggested that PFOA is a "likely" carcinogen in humans. In addition, the board noted that immunotoxicity has been reported, and that effects on nervous system structure and function warrant attention.

In response to DuPont's subpoena announcement, DSFV wrote the US Securities and Exchange Commission (SEC), requesting that it investigate whether executives at the company are hiding financially relevant information. DSFV also prepared a report, The Shareholders' Right to Know More, which reviews DuPont's disclosures regarding financial risks and challenges posed by its use of PFOA. The report concluded that DuPont management omitted investor disclosure of certain information on PFOA, blindsiding investors to market risks and liabilities.

In related news, Amalgamated Bank's LongView Collective Investment Funds, owner of 410,426 shares of DuPont, at a value of over $19M joined DSFV in July. Other members include the United Steelworkers, Sisters of Mercy, Merion Regional Community, Merion, PA and Green Century Capital Management. The DSFV report on shareholders' right to know more about the growing financial challenges of PFOA at DuPont are available at the DuPont Shareholders for Fair Value website: http://www.dupontshareholdersalert.org/

DuPont Shareholders for Fair Value

CONTACT: Sanford Lewis, +1-413-549-7333, for DuPont Shareholders forFair Value

Web site: http://www.dupontshareholdersalert.org/http://www.paceunion.org/

Source: PRNewswire

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