Securities and Exchange Commission

Commission Charges Former Corporate Director and Ex-wife with Illegal
Insider Trading

Litigation Release No. 17170 / October 4, 2001

Securities and Exchange Commission v. Sol Berg and Rosa Hodgson, 01 Civ.
8899

   On October 4, 2001, the Securities and Exchange Commission filed a
   complaint in the United States District Court for the Southern
   District of New York alleging insider trading by Sol Berg, a member of
   the Board of Directors of LeaRonal, Inc. from 1972 through 1999, and
   his former wife, Rosa Hodgson.

   The Commission's complaint alleges that Hodgson, while in possession
   of material, nonpublic information provided by Berg, engaged in
   illegal insider trading in LeaRonal, Inc. stock. During the second
   half of 1998, Berg, as a Director of LeaRonal, Inc., learned that Rohm
   and Haas, Inc. was negotiating with LeaRonal, Inc. to commence a
   tender offer for LeaRonal, Inc.'s outstanding capital stock. Berg told
   Hodgson that LeaRonal, Inc. was conducting confidential merger
   negotiations, and Hodgson then acquired LeaRonal, Inc. stock.
   Specifically, during October and December 1998, Hodgson bought
   LeaRonal, Inc. shares for herself, gave shares as a gift to a close
   friend, and bought additional shares for her daughter. On December 21,
   1998, LeaRonal, Inc. and Rohm and Haas, Inc. jointly announced a
   tender offer by Rohm and Haas, Inc. to purchase LeaRonal, Inc. for
   $34.00 per share or about $460 million. The ill-gotten gains from
   Hodgson's various illegal trades in LeaRonal, Inc. were $36,270.50.

   Simultaneous with the filing of the complaint, Berg and Hodgson
   consented, without admitting or denying the allegations in the
   complaint, to the entry of a final judgment (1) permanently enjoining
   Berg and Hodgson from committing securities fraud in violation of
   Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and
   Exchange Act Rules 10b-5 and 14e-3; (2) ordering Hodgson to disgorge
   $31,622.50, the profits from the illegal trades she made in LeaRonal,
   Inc. stock for her own account, and to pay prejudgment interest on
   that amount; (3) ordering Hodgson to disgorge profits of illegal
   trades ordered by Hodgson for the benefit of others in the amount of
   $4,648, and (4) ordering Berg and Hodgson to each pay a civil penalty
   of $36,270.50.

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Modified 10/05/2001