SIOUX CITY, Iowa, Oct. 20 /PRNewswire-FirstCall/ -- On Oct. 17, the U.S.
Court of Appeals for the Eighth Circuit upheld a lower court decision ordering
Terra Industries Inc.'s insurer, National Union Fire Insurance Company of
Pittsburgh ("National Union") to pay all past and future judgments,
settlements and defense and other associated costs arising from the recall of
carbonated beverages containing carbon dioxide tainted with benzene. The
claims arose when carbon dioxide manufactured at Terra's Severnside, England
plant was found to be tainted with trace amounts of benzene in May 1998.
In 2001, Terra management estimated that total claims for the product
recall could be $14 million and established reserves to cover these losses.
The Eighth Circuit's decision is subject to appeal by National Union.
Terra Industries Inc. (NYSE: TRA), with 2002 revenues of $1 billion, is a
leading international producer of nitrogen products and methanol.
This news release may contain forward-looking statements, which involve
inherent risks and uncertainties. Statements that are not historical facts,
including statements about Terra Industries Inc.'s beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates and expectations. Actual results may differ
materially from those projected in such forward-looking statements and
therefore you should not place undue reliance on them. A non-exclusive list of
the important factors that could cause actual results to differ materially
from those in such forward-looking statements is set forth in Terra Industries
Inc.'s most recent report on Form 10-K and Terra Industries Inc.'s other
documents on file with the Securities and Exchange Commission. Terra
Industries Inc. undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com .
SOURCE Terra Industries Inc.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html
CONTACT:
Mark Rosenbury of Terra Industries Inc.,
+1-712-279-8756
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