A notification program about a proposed partial settlement beganon Jan. 5 as ordered by Judge Stanwood R. Duval, Jr., in the UnitedStates District Court, Eastern District of Louisiana to alert thoseaffected by flooding due to any failures or overtopping of leveesthat occurred within the Parishes of Jefferson, Orleans,Plaquemines and St. Bernard, Louisiana resulting from HurricaneKatrina and/or Hurricane Rita.

The lawsuit alleges levees and other flood and water controlstructures failed and/or were overtopped as a result of HurricanesKatrina and Rita because they were not properly designed,inspected, or maintained, and that this failure caused propertyloss, property damage and personal injury. The Settling Defendantssay that the levees failed for reasons beyond their control andthat they did not do anything wrong.

The Class has been divided into separate Subclasses. Thoseaffected may be included in one or more Subclass. The Subclassesinclude anyone who has or may have claims against: Subclass 1 – theLake Borgne Basin Levee District, the Lake Borgne Basin LeveeDistrict Board of Commissioners, and/or their insurer; Subclass 2 –the East Jefferson Levee District, the East Jefferson LeveeDistrict Board of Commissioners, and/or their insurer; and Subclass3 – the Orleans Levee District, the Orleans Levee District Board ofCommissioners, and/or their insurer.

Under the settlement, a settlement fund worth approximately$20.8 million will be established for the benefit of the SettlementClass, as well as to cover costs and expenses. Under thesettlement, the Court will confirm that this settlement fundrepresents all insurance money available to the SettlingDefendants. Under law, the Settlement Class can get no additionalmoney or property in this settlement because the SettlingDefendants are governmental bodies.

Notices informing Settlement Class members about their legalrights will be mailed, and are scheduled to appear in localnewspapers leading up to hearings on April 2, 2009, when the Courtwill decide whether to approve or certify the Settlement Class and,if so, whether to grant final approval to the settlement. Thehearings may be moved to a different date or time withoutadditional notice, so it is a good idea to checkwww.LeveeBreachClass.com.

If the settlement is approved, the Court will appoint anindependent “Special Master” to oversee the settlement fund. TheSpecial Master will recommend to the Court how to administer thesettlement fund for the benefit of the Settlement Class. The Courtmay request that a second notice be issued to Settlement Classmembers explaining how the settlement fund will be used oradministered.