Halliburton's DII working on agreements with insurers

New York, May 10 - Halliburton said DII Industries has reached an agreement in principle with the leaders of the London Market insurance companies and expects to reach an agreement with its solvent U.S. insurers to resolve the disputes.

If implemented, the agreements along with previously announced proposed insurance settlements would result in the receipt of $1.6 billion in cash for all of DII's insurance receivables. The sum has a present value of $.14 billion. Halliburton expects to receive more than $1 billion by the middle of 2006.

The agreement with the London Market insurers is non-binding. It would settle insurance disputes between DII Industries and substantially all the solvent London Market insurance companies. The agreement in principle is subject to board of directors' approval of all parties and agreement by all remaining London Market insurers.

DII Industries expects to shortly enter into a non-binding agreement in principle with solvent domestic insurance carriers that, if implemented, would settle remaining insurance disputes with those carriers. The agreement in principle would be subject to board of directors' approval of all parties, agreement by Federal-Mogul Products, Inc. and approval by the Federal-Mogul bankruptcy court.

The Houston energy services company also said the bankruptcy court completed hearings on DII's plan of reorganization. It expects confirmation by the end of the summer.

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