Will Receive $223 Million More from Asbestos Insurance
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Published October 25, 2002

3M Co. reports that it has insurance receivables of $223 million related
to respirator/mask/asbestos litigation as of December 31, 2001, up from 
$155 million recorded in December 2000.  The company also recorded $156 
million and $159 million of other insurance receivables for December 2001
and December 2000 respectively.

During October 2001, the Company defended a case in the Circuit Court of
Holmes County, Mississippi, against plaintiffs claiming that a 3M 
respirator and mask did not protect them against contracting claimed 
asbestos-related diseases allegedly caused by exposure to products 
containing asbestos which were manufactured by other defendants.

The case against the company initially involved six plaintiffs whose 
claims were consolidated for trial.  The court dismissed one plaintiff's
case just before trial, and a second plaintiff abandoned his case before
it was submitted to the jury.

On October 26, the jury returned a verdict against all defendants in 
favor of the plaintiffs, four of whom had claims against the company. The
jury awarded the plaintiffs $25 million each in compensatory damages. The
jury denied plaintiffs' request for punitive damages.

Based on the jury's findings of percentage of fault attributable to each
defendant, the company's share of the total verdict is $22.5 million.  
The company can provide no assurance at this time about the ability of 
any co-defendant to pay its share of any ultimate judgment or whether a 
co-defendant's inability to pay will cause a reallocation of liability 
for damages among the remaining solvent defendants under state law.  
Judgment was entered on January 30, 2002.

Because the company is vigorously challenging the judgment in post-trial
motions, will plan to appeal if necessary, and believes that the judgment
ultimately will be overturned, no liability has been recorded related to
this matter as of December 31, 2001.  If any damages were ultimately 
assessed against the company, a substantial portion of such damages would
be covered by the company's product liability insurance.

Based on the Company's experience, the vast majority of these lawsuits 
and claims purportedly relate to the alleged use of company's mask and 
respirator products and seek damages from the company and other 
defendants for alleged personal injury from occupational exposure to 
asbestos or, less frequently, silica found in products manufactured by 
other defendants.

The remaining lawsuits and claims generally allege personal injury from 
occupational exposure to asbestos from unspecified products claimed to 
have been manufactured by the company or other defendants and/or from 
specialty products containing asbestos allegedly manufactured by the 
company and/or other defendants many years ago.

Based on the company's experience in defending and resolving these 
lawsuits and claims to date and the substantial product liability 
insurance provided by the company's insurers, the company believes these 
lawsuits and claims will not have a material adverse effect on its 
consolidated financial position, results of operations, or cash flows.

As of December 31, 2001, the company had estimated accrued liabilities 
of approximately $156 million for these claims.  This amount represents 
the company's best estimate of the amount to cover the cost and expense 
of resolving current and probable future claims. The company also had 
receivables for expected insurance recoveries of approximately $223 
million. The difference between the accrued liability and insurance 
receivable represents the time delay between payment of claims and 
receipt of insurance reimbursements.

The company's current estimate of its probable liabilities and associated
expenses for respirator/mask/asbestos litigation is based on facts and 
circumstances existing at this time and reasonably anticipated trends. 
New developments may occur that could affect the company's estimate of 
probable liabilities and associated expenses. These developments include,
but are not limited to: 

   (1) changes in the number of future claims,
   (2) changes in the average cost of resolving claims, 
   (3) change in the nature of claims received, 
   (4) changes in the law and procedure applicable to these claims,  or
   (5) financial viability of other co-defendants and insurers and  
       other unknown variables.

The company cannot determine the impact of these potential developments 
on the current estimate of its probable liabilities and associated expenses.

COMPANY PROFILE
3M Company (NYSE: MMM)
3M Center
St. Paul, MN 55144
Phone: 651-733-1110
Fax: 651-736-2133
Toll Free: 800-364-3577

Employees                      :           71,669
Revenues                       : $ 16,079,000,000.00
Net Income                     : $  1,430,000,000.00
Assets                         : $ 14,606,000,000.00
Liabilities                    : $  8,520,000,000.00
Booked Asbestos Liabilities    : $    156,000,000
Booked Asbestos Assets         : $    223,000,000
(As of December 31, 2001)

Description:  3M Co., formerly Minnesota Mining and Manufacturing 
Company, makes everything from masking tape to asthma inhalers. 3M has 
seven operating segments: transportation; display and graphics (specialty
film, traffic control materials); health care (dental and medical 
supplies and health IT); safety, security, and protection (commercial 
care, occupational health and safety products); electro and communications
(connecting, splicing, and insulating products); industrial business 
(tapes and adhesives); and consumer and office. Well-known brands 
include Scotchgard fabric protectors, Post-it Notes, Scotch-Brite scouring
products, and Scotch tapes. Sales outside the US account for nearly 55% of
3M's revenues. 



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