SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SANTA CLARA

JOHN SALAH, DOMINIC PASCALE, LINDA LYONS, MEL AMRIKHAS and RUBINA AMRIKHAS, each individually and on behalf of all other similarly situated plaintiffs,		) ) ) ) )		CASE NO. CV 738376 NOTICE OF PROPOSED CLASS ACTION SETTLEMENT
Plaintiffs,		) )		Department: 21 Judge: Hon. Joseph F. Biafore, Jr.
vs.		) )
CONSOLIDATED INDUSTRIES, INC., et al.,		) )
Defendants.		)
________________________________________		) )
AND RELATED CROSS-ACTIONS.		)
________________________________________		)

TO: CALIFORNIA RESIDENTS WHO ARE OWNERS OF AMANA, AMERICAN BEST, AMERICAN STANDARD, BARD, GOETTL AND TRANE BRAND HORIZONTALLY-MOUNTED GAS-FIRED NOX ROD-CONTAINING RESIDENTIAL FURNACES.

If you are a California resident and you own or owned a horizontal furnace with a brand name and model number listed on the table below (hereinafter, a "Furnace") which is or was installed in a home in California, then you may be a member of a settlement class that was certified by the Superior Court, Santa Clara County, on June 29, 2001. If you own or owned a furnace that is not listed on the table, then you should disregard this Notice.

COMPANY NAME BRAND NAME MODEL NUMBER Amana Company Amana GSE50DN3X GSE75DN4X GSE100DN5X Bard Manufacturing Bard ESG040D36B ESG050D36B ESG060D36B ESG060D48B ESG080D60B ESG100D60B ESG120D60B ESG140D60B ESG050D36D ESG060D48D ESG075D48D ESG080D60D ESG100D60D ISG060D36AX ISG080D48AX ISG100D60AX ISG120D60AX Goettl Air Conditioning Inc. American Best, Goettl HAC 040N(D,E, or F)3RCX HAC 050N(D,E, or F)3RCX HAC 040N(D,E, or F)3RXD HAC 050N(D,E, or F)3RXD HAC 040N(D,E, or F)3RXC HAC 050N(D,E, or F)3RXC HAC 060N(D,E, or F)4RXC HAC 075N(D,E, or F)4RXC HAC 080N(D,E, or F)5RXC HAC 100N(D,E, or F)5RXC HCC 040N(D,E, or F)3RX HCC 050N(D,E, or F)3RX HCC 060N(D,E, or F)4RX HCC 075N(D,E, or F)4RX HCC 100N(D,E, or F)5RX HBA 040N(D,E, or F)3RX HBA 060N(D,E, or F)3RX HBA 080N(D,E, or F)4RX HBA 100N(D,E, or F)5RX HBA 120N(D,E, or F)5RX The Trane Company Trane, American Standard THN050A936A THN060A948A THN075A948A THN100A960A

I. CLASS ALLEGATIONS

The class action complaint was filed in February 1994 by several individual plaintiffs (the Representative Plaintiffs) against Consolidated Industries Corp. (the manufacturer of the furnaces) and several entities that distributed and installed the furnaces. The plaintiffs allege that all horizontal furnaces manufactured by Consolidated that contain NOx rods are defective. (NOx rods were included in the furnaces distributed in California to ensure compliance with emissions requirements in certain air quality management districts.) In particular, the plaintiffs contend that the NOx rods lead to premature failure of the furnaces, damage to adjacent building components and/or fires. The defendants deny that any such product defects exist, that any damage is caused by the furnaces, and that the members of the alleged class have been injured or are entitled to damages.

II. CLASS DEFINITION

The settlement class, as defined by the Court, includes: "All Persons (not otherwise represented by counsel in existing litigation based upon identical or similar facts) who are (i) California residents and (ii) past, present or future owners of horizontal furnaces that are equipped with NOx rods, were manufactured by Defendant Consolidated Industries, and that bear the authorized name or label of one of the Settling Defendants: American Standard Inc. (including its division The Trane Company), Amana Company L.P. (f/k/a, and sued herein as, Amana Refrigeration, Inc.), Bard Manufacturing Company Inc. and Goettl Air Conditioning, Inc. The Settlement Class shall not include any defendants in the class action, members of the immediate families of defendants, entities in which one or more defendants have a controlling interest and the legal representatives, heirs, successors or assigns of any of the defendants. As used herein, Person means an individual, corporation, partnership, limited partnership, association, joint stock company, estate, legal representative, trust, unincorporated association, government or any political subdivision or agency thereof, and any business or legal entity and their spouses, heirs, predecessors, successors, representatives, or assignees." You are a member of the settlement class if you are a California resident and own or owned a furnace with a brand name and model number included in the table above which is or was installed in a home in California.

III. PROPOSED SETTLEMENT

The Representative Plaintiffs have reached agreement with four of the distributors – The Trane Company (a division of American Standard Inc.), Amana Company L.P. (f/k/a, and sued herein as, Amana Refrigeration, Inc.), Bard Manufacturing Company Inc. and Goettl Air Conditioning, Inc. – to settle all claims arising from furnaces distributed by those entities. Trial against the remaining non-settling defendants is scheduled to commence this summer.

Under the terms of the proposed settlement, the four Settling Defendants have agreed to provide the following remedies:

1. Inspection, Repair and Replacement of Existing Furnaces

(a) Each Settling Defendant will provide to each settlement class member a free inspection of all Furnaces bearing that Settling Defendant¹s authorized name or label. In connection with such inspections, each Settling Defendant will arrange for new, replacement, burners to be installed in each inspected Furnace bearing its authorized name or label at no cost to the settlement class member. If, upon inspection of a particular Furnace, the original burners are found to have opened up or become severely cracked, the inspector also will inspect the heat exchanger. If the heat exchanger is deemed damaged, then the Settling Defendant will offer to replace the heat exchanger at no cost to the settlement class member. Each Settling Defendant also will arrange for the inspector to make repairs or adjustments, as necessary, to fix heat or flame-related damage to wood under or adjacent to the Furnace.

(b) In lieu of the remedies set forth in (1)(a) above, each settlement class member will have the option of replacing the Furnace with a new free replacement furnace of comparable size. The replacement furnace will be supplied by the Settling Defendant whose authorized name or label appears on the Furnace to be replaced. A settlement class member who exercises this option must bear the costs of installing the replacement furnace.

2. Compensation for Certain Repairs or Replacements

(a) A settlement class member who already has repaired or replaced his or her Furnace, at his or her own cost, may be eligible for recovery from the Settling Defendant whose label or name appeared on the Furnace, in the amount and subject to the conditions set forth below:

(i) Each settlement class member who replaced his or her Furnace, at his or her cost, shall be entitled to a payment of $450.

(ii) Each settlement class member who repaired his or her Furnaces, at his or her cost, shall be entitled to payment consisting of the lesser of (i) the out-of-pocket costs paid by the settlement class member to repair their furnace or (ii) $450.

(b) To be eligible for reimbursement under these provisions, the original repair or replacement of a Furnace by the settlement class member must have occurred on or before June 29, 2001. The Settlement Class Member must present adequate proof of his or her claim, including: (a) documentary proof of current or prior ownership of the Furnace; (b) documentary proof of the amount of money that the Settlement Class Member paid to repair or replace the Furnace; and (c) documentary proof that the Settlement Class Member replaced or repaired the Furnace because of burner or heat exchanger damage.

3. Assignees. the Stipulation of Settlement provides a procedure by which certain assignees of class members may be eligible for the remedies provided by the Stipulation on the same basis as class members, subject to certain additional conditions set forth in the Stipulation of Settlement.

4. Attorneys Fees and Expenses. The Settling Defendants also have agreed to pay $4 million to compensate Class Counsel for fees and expenses incurred in prosecuting the lawsuit on behalf of the class, as approved by the Court.

In exchange for these class remedies, members of the settlement class, who do not opt out, will be deemed to have given a complete release as to claims arising from the Furnaces (whether or not they actually file a claim form and seek the available remedies). Any settlement class member who requests a remedy under these provisions prior to approval of the class action settlement by the Court may be required to sign a release of all claims as a condition of receiving a class remedy as described above.

This Notice is intended only to provide a summary of the terms of the settlement; you may review the full Stipulation of Settlement by logging onto www.furnaceinspect.com or by sending a request to the Clerk of the Court at the address listed at the bottom of this Notice. You will not receive any further notice in the event that the Settlement is approved. Therefore, if you wish to participate in the Settlement and obtain its benefits, you should complete your claim form as soon as possible according to the instructions below.

IV. HEARING ON SETTLEMENT.

The Court has conditionally certified the settlement class and preliminarily approved the settlement. The Court has scheduled a hearing on September 28, 2001, at the Superior Court, Santa Clara County, Department 21, 161 North First Street, San Jose, CA 95113, to hear evidence and testimony regarding whether final approval should be given.

V. YOUR OPTIONS AS A SETTLEMENT CLASS MEMBER.

Unless you opt out (as described below), you will be bound by any judgment or other final disposition of the class lawsuit, whether favorable or unfavorable, and you will be eligible to participate in any recovery obtained for the benefit of the class. As a settlement class member, you have the following options:

• DO NOTHING AND REMAIN A MEMBER OF THE CLASS. You need do nothing at this time to remain a member of the settlement class. If you do nothing, you will be bound by any judgment. You will be eligible to participate in the settlement, provided you timely file a claim form that is postmarked on or before October 1, 2002.
  
  
• OBJECT TO THE SETTLEMENT. You may object to the settlement by mailing your written objections to the Clerk of the Court at the address noted below. You must identify the make, model and serial number of your furnace(s) in your objection. You may only object to the settlement if you choose to remain a member of the class (i.e., you do not "opt out"). To be considered by the Court, objections must be received on or before September 17, 2001.
  
  
• APPEAR AT THE HEARING. If you wish to appear at the September 28, 2001 hearing to testify in favor or against the settlement, you must so notify the Clerk of the Court in writing, and provide a short description of the testimony you wish to give. You must identify the make, model and serial number of your furnace(s) in your correspondence. You may only appear at the hearing if you choose to remain a member of the class (i.e., you do not "opt out"). Requests to appear must be received on or before September 17, 2001.
  
  
• OPT OUT OF THE CLASS. You may exclude yourself (or "opt out") from the class action entirely. If you opt out, you will not be bound by any judgment or settlement, and you will not be eligible to participate in any recovery obtained for the benefit of the class. You may opt out by sending a letter to the Clerk of the Court, at the address below, that includes your name, address, the make, model and serial number of the furnace(s) that you own, and the statement "I WISH TO OPT OUT OF THE FURNACE CLASS ACTION SETTLEMENT," with your signature. Opt out requests must be received on or before September 17, 2001. Settlement class members who do not opt out of the class action in the manner and time prescribed shall be deemed members of the settlement class.
  
  
• OBTAIN YOUR OWN ATTORNEY. You may choose to remain in the class and be represented by the lawyer of your choosing at your own cost. If you wish to be represented by your own lawyer, your lawyer should so notify the Clerk of the Court in writing at the address noted below. Such notifications must be received on or before September 17, 2001 to be considered by the Court. Any class member who does not arrange for such a notification will be deemed to have forever waived his or her right to select separate counsel.

VI. IF YOU WISH TO RECEIVE THE BENEFITS OF THE PROPOSED SETTLEMENT.

If you believe that you are a member of the settlement class, and you wish to receive the benefits of the settlement, then you must timely submit the attached claim form, together with any required documentation. YOUR CLAIM FORM MUST BE POSTMARKED NO LATER THAN OCTOBER 1, 2002 FOR YOU TO BE ELIGIBLE FOR THE BENEFITS OF THE SETTLEMENT. If you do not timely file a claim form, and you do not opt out, you will still be bound by any judgment or settlement, including any release of Settling Defendants effectuated thereby.

***

All correspondence regarding the class action settlement (including requests to appear at the hearing, opt out, be represented by your own counsel, and/or to receive a copy of the Stipulation of Settlement) should be directed to the following:

REMINDER ON IMPORTANT DEADLINES: ALL OPT-OUT REQUESTS, OBJECTIONS OR NOTICES TO APPEAR MUST BE RECEIVED BY SEPTEMBER 17, 2001. IF THE SETTLEMENT IS APPROVED, ALL CLAIM FORMS TO PARTICIPATE IN THE SETTLEMENT MUST BE POSTMARKED ON OR BEFORE OCTOBER 1, 2002.

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