Clayton, Dubilier & Rice Statement Regarding Culligan Derivative Action

Clayton, Dubilier & Rice, LLC (CD&R) acknowledged receipt of a derivative complaint brought on behalf of certain shareholders of Culligan Ltd. who are also Culligan franchise dealers. The complaint seeks relief in connection with a pro rata dividend paid by Culligan to all its shareholders, including approximately $30 million to the franchise dealers, in the spring of 2007. The allegations in the complaint are meritless. The actions by Culligan and its board leading up to the 2007 dividend were entirely fair and proper from a business and legal perspective as confirmed by the independent review undertaken by the Companys outside legal counsel. The plaintiffs received their fair share of the dividend without objection over five years ago and we see no basis for second-guessing Culligans judgment in the context of todays economic environment. With the pending negotiated sale of the business and 100 percent of the Companys first and second lien holders agreeing to the terms of the restructuring by the original solicitation deadline, we strongly believe Culligan is on a positive track both in terms of strengthening its financial profile, as well as executing against its long-term business plan. The Company has a welldiversified business mix with approximately 50% of sales derived from high-margin recurring revenue streams. Culligan also has strong free cash flow characteristics and an attractive and growing commercial and industrial business. As a result of the pending restructuring, no job losses are expected. Since our original investment in 2004, Culligan has undertaken a business transformation aimed at more effectively leveraging its unique market position and improving sales growth, margins and return on capital. As part of this transformation, the Company has undertaken several strategic initiatives to enhance profitability and competitiveness:

(i) (ii) (iii) (iv) (v)

Secured a new royalty-based franchise agreement in North America; Improved North American manufacturing with lower costs and improved quality; Revitalized product portfolio through R&D investments; Rebuilt the North America Commercial & Industrial business; and Streamlined business through non-core asset divestitures and the refranchising of North American company-owned dealers, an important step to make the Company less capital intensive and more profitable.