UAW Sues ULLICO to Force Release of Thompson Report

    DETROIT, Jan. 30 -- The UAW will today file a lawsuit in U.S.
District Court in Detroit against ULLICO (Union Labor Life Insurance Company),
seeking the release of the report by former Illinois Governor James R.
Thompson regarding allegations of improper stock trading by certain members of
ULLICO's Board of Directors.
    "We need to know the facts," said UAW President Ron Gettelfinger.  "If
we've learned anything from Enron and other corporate scandals that have
unfolded during the past year, it's that shareholders must be vigilant in
demanding transparency, openness and accountability from corporate officers
and directors."
    "ULLICO, which is owned by America's labor unions, must be held to the
very highest ethical standards.  The UAW strongly believes that ULLICO should
release the Thompson report to all ULLICO directors and shareholders," said
Gettelfinger.
    The lawsuit was filed on behalf of the pension plans for employees of the
International Union, UAW; the pension plans collectively own more than 150,000
shares of ULLICO stock.
    In December 2002, UAW President Ron Gettelfinger and Secretary-Treasurer
Elizabeth Bunn sent ULLICO a written request for a copy of the Thompson
report.
    "ULLICO management did not even respond to our request," said Bunn.  "Our
union routinely requests and receives financial disclosure from companies
across the bargaining table.  We will demand no less from ULLICO."
    ULLICO is presently under investigation by a federal grand jury and state
insurance regulators in Maryland, where the company is based.
    ULLICO made a major investment in Global Crossing, a telecommunications
company which experienced a sharp rise in its stock price in the late 1990s,
and an equally sharp fall in its stock price in 2000.
    According to press reports, when ULLICO stock was rising as a result of
its investment in Global Crossing, company directors were allowed to purchase
company stock at an artificially low price.  When Global Crossing's stock
began to fall -- and ULLICO's along with it -- the same directors were offered
the opportunity to re-sell their stock to ULLICO at an artificially high
price.  Not all directors took advantage of these opportunities.
    These special deals were offered only to ULLICO directors but not to any
other shareholders, according to press reports.
    At ULLICO's May 2002 annual meeting, management assured shareholders that
an independent investigation of these stock transactions would be conducted by
James R. Thompson.  Currently the managing partner of Winston & Strawn, a
Chicago-based law firm, Thompson served as U.S. Attorney for Northeastern
Illinois prior to his election as Governor of Illinois in 1976.
    Thompson completed his report later in the year, but reportedly only
ULLICO directors who signed a confidentiality agreement were allowed to see
the report.
    "We were promised a full investigation, and we intend to see that ULLICO
management keeps its promise," said Gettelfinger.  "ULLICO shareholders --
including UAW employees whose pension funds are invested in that company --
deserve no less than full disclosure of the Thompson report."