COLUMBIA, Md.--(BUSINESS WIRE)--Oct. 2, 2006--Grace Davison, an operating segment of W. R. Grace & Co. (NYSE:GRA), has established the BioFuel Technologies Group that will oversee intensified product development in the renewable fuels industry.

The BioFuel Technologies Group is the flagship project of the Incubator Technology program at Grace that develops technology and products through a combination of R&D and business development. The first areas the BioFuel Technologies Group will focus on include catalysts and adsorbents for enhanced biodiesel and bioethanol production, as well as chromatography-based analytical and quality control tools.

"Our enabling technologies hold tremendous potential to help biorefineries efficiently manufacture alternatives to gasoline and diesel that promote sustainable, clean and secure energy sources," said Greg Poling, President of Grace Davison. "The company's century-long history of materials science expertise creates a solid foundation for expansion in the biofuels market. The creation of the BioFuel Technologies Group reaffirms the company's strong commitment to environmental stewardship."

The BioFuel Technologies Group combines previous efforts across product lines, leveraging the company's existing global infrastructure and enabling Grace to offer integrated customer solutions and technical support. The BioFuel Technologies Group is positioned to capitalize on an estimated average growth rate of 15% in the biofuels industry, as reported by a study prepared by the Worldwatch Institute.

Grace is a leading global supplier of catalysts and other products and services to petroleum refiners; catalysts for the manufacture of plastics; silica-based engineered and specialty materials for a wide-range of industrial applications; specialty chemicals, additives and materials for commercial and residential construction; and can sealants and coatings for food packaging. With annual sales of more than $2.5 billion, Grace has over 6,400 employees in nearly 40 countries. For more information, visit Grace's web site at www.grace.com.

This announcement contains forward-looking statements that involve risks and uncertainties, as well as statements that are preceded by, followed by or include the words "believes," "plans," "intends," "targets," "will," "expects," "anticipates," or similar expressions. For such statements, Grace claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results might differ materially from those projected in the forward-looking statements. Factors that could cause actual results to materially differ from those contained in the forward-looking statements include: Grace's bankruptcy and proposed plan of reorganization, Grace's legal proceedings (especially the Montana criminal proceeding and environmental proceedings), the cost and availability of raw materials, especially natural gas and petroleum-based raw materials, Grace's unfunded pension liabilities, costs of environmental compliance, risks related to foreign operations, especially, security, regulation and currency risks and those factors set forth in Grace's most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future performance. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. Grace undertakes no obligation to publicly release any revisions to the forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.

CONTACT: W. R. Grace & Co.
Investor Relations:
Bridget Sarikas, + 1 410-531-4194
bridget.sarikas@grace.com
or
Media Relations:
Greg Euston, + 1 404-870-6809
greg.euston@mslpr.com

SOURCE: W. R. Grace & Co.