BERKSHIRE HATHAWAY INC. NEWS RELEASE FOR IMMEDIATE RELEASE May 14, 1997 Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters ended March 31, 1997 and 1996 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions except per share amounts): 1997 1996 --------- --------- Earnings from operations......................... $ 263.1 $ 160.2 Realized investment gain......................... 21.3 1,508.5 --------- --------- Net earnings..................................... $ 284.4 $ 1,668.7 ========= ========= Average Class A equivalent shares outstanding.... 1,232,245 1,193,512 Earnings per share: Earnings from operations...................... $ 214 $ 134 Net earnings.................................. $ 231 $1,398 ====== ====== There are three principal reasons for the comparative increase in operating earnings in 1997. First, GEICO's underwriting results continue to be outstanding. Over the last twelve months, GEICO's voluntary auto policy growth was 12.7% led by major gains in standard and non standard auto lines. Second, 1997's pre-tax operating results reflect dividend income of about $55 million related to Berkshire's investment in US Airways Cumulative Convertible Preferred Stock. As of March 31, 1997, US Airways was current with respect to its dividend obligations. Finally, 1997's first quarter includes the results of FlightSafety which Berkshire acquired at the end of 1996. Shareholders' equity at March 31, 1997 was $24.2 billion or $19,631 per equivalent Class A Common share. Over the past twelve months, net book value per share has grown by 29.3%. The net earnings figures for 1996 are meaningless in evaluating the Company. 1996's first quarter earnings include $1.5 billion of after-tax realized investment gains compared to $21.3 million in 1997. Most of 1996's realized gain arose in connection with The Walt Disney Company's acquisition of Capital Cities/ABC, Inc. While the realized gain had a material impact on Berkshire's 1996 reported earnings, it had a very minor impact on Berkshire's shareholders' equity. Berkshire records its investments at market value and the appreciation in the Capital Cities stock had been previously reflected as a component of shareholders' equity in periods prior to 1996's first quarter. Berkshire's first quarter interim report to shareholders report will be posted on the Internet on May 15, 1997 where it can be accessed via www.berkshirehathaway.com. Berkshire Hathaway and its subsidiaries engage in a number of diverse business activities among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis. Common stock of the Company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B. Contact: Marc D. Hamburg (402) 346-1400 # # # # # # #