Earnings of Berkshire Hathaway Inc. for the years ended December 31, 1998 and 1997 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions, except per share amounts).

GEICO, Berkshire's largest operation prior to the acquisition of General Re which was included in 1998's results for only ten days, was an important contributor to 1998 operating earnings with an underwriting profit margin of 6.7% for the year. This result is well above GEICO's target. Premium rate reductions were taken in certain states during 1998 and margins will almost certainly decrease in 1999. GEICO's growth continued to accelerate in all categories of auto insurance - preferred, standard and nonstandard. Voluntary policies in force, increased by 20.8% following increases of 16% in 1997 and 10% in 1996. Year over year growth has increased every quarter since Berkshire completed its acquisition of GEICO at the beginning of 1996. This trend continues in 1999.

Berkshire's 1998 Annual Report to the shareholders is scheduled to be posted on the Internet on Saturday, March 13, 1999 at approximately 8:00 a.m. eastern time where it can be accessed via www.berkshirehathaway.com. It will include much additional information about the Company's financial position and results of operations. The Annual Report is scheduled to be mailed to shareholders in late March.

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.

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