#2703
                                                       CORPORATE COMMUNICATIONS

                                                              W. R. Grace & Co.
                                                           One Town Center Road
                                                      Boca Raton, FL 33486-1010
[ERACE NEWS LOGO]





CONTACT: Media Relations:          Investor Relations:
         Jane McGuinness           Susan G. Eccher
         (561) 362-1343            (561) 362-1331


                     GRACE CONSIDERING ASBESTOS INSURANCE;
                       CEO COSTELLO TO RETIRE BY YEAR-END

         BOCA RATON, Fla., May 14, 1998 -- W. R. Grace & Co. (NYSE: GRA) today

confirmed that it is considering purchasing supplemental insurance that would

limit its liability for asbestos-related litigation. In response to questions

at an analyst meeting, Grace Senior Vice President and Chief Financial Officer

Larry Ellberger said that Grace believes the insurance, if available, could

cost less than $100 million. However, the cost would depend upon the specific

terms of the coverage and could be substantially less than $100 million. Grace

also stated that if it determines to purchase the insurance, it may be in place

by year-end 1998.

         In addition, Grace reported that Chairman, President and Chief

Executive Officer Albert J. Costello plans to retire around year-end. Grace

said that its Board of Directors is conducting a search of internal and

external candidates to succeed Costello and hopes to announce a successor by

the end of the 1998 third quarter.

         Grace is a leading global supplier of catalysts and silica products,

specialty construction chemicals and building materials, and container sealants

and coatings. With annual sales of approximately $1.5 billion, Grace has 6,300

employees and operations in more than 40 countries.

         For more information, visit Grace's Web site at www.grace.com.

                                      ###

         This announcement contains "forward-looking" information. Future
results may differ from those discussed in this announcement. Information
concerning the factors that could cause such differences can be found in
Grace's Annual Report on Form 10-K for 1997.