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EXHIBIT 99.1
TO: USG INVESTMENT PLAN PARTICIPANTS
FROM: #158, P. K. MAITLAND, VICE PRESIDENT COMPENSATION, BENEFITS &
ADMINISTRATION
DATE: NOVEMBER 8, 2000
SUBJECT: USG CORPORATION INVESTMENT PLAN - USG COMMON STOCK FUND
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USG's stock price has declined significantly in recent weeks. While the
Corporation continues to have solid operating results, external factors are
impacting the value of USG shares. The market is reacting to a number of
different issues, including a slowdown in the construction market, falling
wallboard prices, and the investment community's concern about anticipated
increases in asbestos litigation costs.
In view of these external factors, and the resulting potential for further
uncertainty in the price of USG Stock, participants in the USG Investment Plan
will not be allowed to make future contributions to the USG Stock fund until
further notice. If you have invested in the USG Stock fund, you should evaluate
the appropriateness of USG Stock in your investment portfolio given current
market conditions and your own personal risk tolerance.
This stock purchase suspension as to future contributions does not require any
immediate action on your part. If you are currently investing new contributions
in the USG Stock fund, future contributions will be automatically redirected to
the Stable Value fund effective with all hourly and salaried payrolls beginning
November 9, 2000. If you prefer one of the other investment alternatives
available in the plan, you can change this allocation by calling the USG
Investment Plan Connection (1-800-953-7526).
In addition, transfers of assets from other funds into the USG Stock fund are
also being suspended. If you wish to transfer existing balances out of the USG
Stock fund into one of the other seven investment alternatives, you can do so by
calling the USG Investment Plan Connection. The telephone system will allow
participants to transfer money out of the USG Stock fund during the suspension
period.
USG and its employees have made many significant operating accomplishments over
the past several years and will make many more in the years ahead. The stock
purchase suspension ensures that employees will not be distracted by unnecessary
concerns about the safety of their supplemental retirement assets.
If you have any questions about these modifications to the Investment Plan,
please contact your Human Resources representative or call the USG Investment
Plan Connection.
