Omaha, Nebraska and Stamford, Connecticut, December 17, 1998 — Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B) and General Re Corporation (NYSE: GRN) announced today that they have received a favorable tax ruling from the IRS which will allow their previously announced planned merger to be tax-free to both General Re and Berkshire shareholders (except for cash received by General Re shareholders in lieu of fractional shares). Accordingly, the merger closing has been scheduled to occur after the close of trading on the New York Stock Exchange on December 21, 1998.

Under the terms of the merger agreement, each General Re shareholder will have the option to elect to receive either 0.0035 Class A shares or 0.105 Class B shares of Berkshire for each share of General Re common stock. Election forms will be sent to all General Re shareholders of record on the closing date. Any General Re shareholder not making an election by March 1, 1999 will receive Berkshire Class B shares.

As a result of the closing occurring prior to the usual record date, General Re will not pay a fourth quarter dividend.

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Berkshire is a holding company owning subsidiaries engaged in a number of diverse business activities. The most important of these is the property and casualty insurance business conducted on both a direct and reinsurance basis through a number of subsidiaries.

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General Re Corporation is a holding company for global reinsurance and related risk management operations. It owns General Reinsurance Corporation and National Reinsurance Corporation, the largest professional property/casualty reinsurance group domiciled in the United States, and also holds a controlling interest in Kölnische Rückversicherungs-Gesellschaft AG (Cologne Re), a major international reinsurer. Together, General Re and Cologne Re transact reinsurance business as "General & Cologne Re".

In addition, General Re writes excess and surplus lines insurance through General Star Management Company, provides alternative risk solutions through Genesis Underwriting Management Company, provides reinsurance brokerage services through Herbert Clough, Inc., manages aviation insurance risks through United States Aviation Underwriters, Inc., and acts as a business development consultant and reinsurance intermediary through Ardent Risk Services, Inc. General Re also operates as a dealer in the swap and derivatives market through General Re Financial Products Corporation, and provides specialized investment services to the insurance industry through General Re-New England Asset Management, Inc.

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