CONSOL Energy's Subsidiary Faces 21,000 Asbestos Suits ------------------------------------------------------ Published December 13, 2002 One of CONSOL Energy's subsidiaries, Fairmont Supply Company, which distributes industrial supplies, currently is defending against approximately 21,000 asbestos claims in state courts in Pennsylvania, Ohio, West Virginia and Mississippi. Because a very small percentage of products manufactured by third parties and supplied by Fairmont in the past may have contained asbestos and many of the pending claims are part of mass complaints filed by hundreds of plaintiffs against a hundred or more defendants, it has been difficult for Fairmont to determine how many of the cases actually involve valid claims or plaintiffs who were actually exposed to asbestos-containing products supplied by Fairmont. In addition, while Fairmont may be entitled to indemnity or contribution in certain jurisdictions from manufacturers of identified products, the availability of such indemnity or contribution is unclear at this time and, in recent years, some of the manufacturers named as defendants in these actions have sought protection from these claims under bankruptcy laws. Fairmont has no insurance coverage with respect to these asbestos cases. To date, payments by Fairmont with respect to asbestos cases have not been material. However, there cannot be any assurance that payments in the future with respect to pending or future asbestos cases will not be material to the financial position, results of operations or cash flows of CONSOL Energy. COMPANY PROFILE CONSOL Energy Inc. (NYSE: CNX) Consol Plaza, 1800 Washington Rd. Pittsburgh, PA 15241-1421 Phone: 412-831-4000 Fax: 412-831-4103 http://www.consolenergy.com/ Employees : 7,523 Revenue : $ 1,050,000,000 Net Income : $ 1,100,000,000 Assets : $ 4,297,600,000 Liabilities : $ 4,026,100,000 (As of December 31, 2001) Description: CONSOL is one of the US's three largest coal mining companies, along with Peabody and Arch Coal. The company primarily mines bituminous coal, which burns cleaner than lower grades. Customers include electric utilities, steel mills, and trading companies. CONSOL's Buchanan Production and Pocahontas Gas subsidiaries recover coalbed methane, an increasingly popular fuel for producing electricity. Another subsidiary, Fairmont Supply, distributes mining and industrial supplies throughout the US. Germany-based conglomerate RWE owns 74% of the company. ------------------------------------------------------------------- LitigationDataSource.com