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THE AMERICAN HOME PRODUCTS SETTLEMENT - FEN-PHEN, PONDIMIN, AND REDUX

May 1, 2002
May 2002

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Fen-Phen, Redux or Pondimin
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On January 3, 2002, the United States District Court for the Eastern District of Pennsylvania gave Final Judicial Approval to a $3.75 billion settlement to be paid by American Home Products to settle claims resulting from the ingestion of Pondimin and/or Redux. The AHP Settlement Trust ("Trust"), which was established on September 1, 2000, is empowered to administer the provisions of the Settlement Agreement and to process the claims of Class Members who have filed claims with the Trust.

The Trust is comprised of seven members of a Board of Trustees with special expertise in cardiology, law, business and finance. The Settlement Agreement provides for a variety of benefits, including refunds for the costs of Pondimin and Redux, medical monitoring and some medical treatment or payment for monitoring and treatment, and compensation for specifically defined valvular heart conditions that are evaluated on a scientifically established "matrix".

There are four basic benefits under the Settlement Agreement:

1. Diet Drug Prescription Refunds
2. Echocardiography Screening
3. Cash/Medical Services
4. Matrix Compensation

The following table provides a summary of the information about the benefits available to the various categories of claimants under the Settlement, the basic Claim Forms that need to be filed, and the deadlines for mailing each of them.

FUND A MEDICAL MONITORING BENEFITS
Benefit Used Pondimin and/or Redux for 61 days or MORE (if otherwise eligible) Used Pondimin and/or Redux for 60 days or LESS (if otherwise eligible) Who Can Seek Registration Requirements and Deadlines Other Material Needed to Complete Claim
Free Echocardiogram and Doctor Visit in the Screening Program YES Generally NO, but may be available under the compassionate and humanitarian program Diet Drug Users Mail BLUE Form by August 1, 2002. If applying for compassionate and humanitarian program, also mail BROWN Form by August 1, 2002. - Prescription records
- If submitting BROWN Form, the materials required by BROWN form
Reimbursement for Echocardiogram Received Outside the Screening Program YES, if the Echo was after March 30, 2000, and before January 2, 2002 YES, if diagnosed FDA Positive between January 4, 2002 and January 3, 2003 Diet Drug Users Mail BLUE Form and WHITE Form by May 3, 2003. - Prescription records- Echo report- GRAY form- Echo tape or disk- Invoice for Echo- Proof of payment
Reimbursement for Echocardiogram Received Outside the Screening Program, if the Trust has Enough Funds YES YES Diet Drug Users or Representative Claimants Mail BLUE Form and WHITE Form by August 1, 2002 - Prescription records
- Echo report
- GRAY form if Echo after September 30, 1999
- Echo tape or disk
- Invoice for Echo
- Proof of payment
Cash or Additional Medical Services YES, if FDA Positive, $6,000 cash or $10,000 in medical care YES, if FDA Positive, $3,000 cash or $5,000 in medical care Diet Drug Users Mail BLUE Form by May 3, 2003 - Prescription records
- Echo report
- GRAY Form if Echo after September 30, 1999
- Echo disk or tape
Prescription Cost Refunds YES (subject to $500 limit and availability of funds after paying other benefits to class) YES Diet Drug Users or Representative Claimants Mail BLUE Form by August 1, 2002 - Prescription records

FUND B MATRIX BENEFITS
Benefit Used Pondimin and/or Redux for 61 days or MORE (if otherwise eligible) Used Pondimin and/or Redux for 60 days or LESS (if otherwise eligible) Who Can Seek Registration Requirements and Deadlines Other Material Needed to Complete Claim
Cash Payment for Matrix-Level Benefits YES, from $7,389 to $1,485,000 for Diet Drug Users and from $500 to $15,000 for Derivative Claimants YES, from $7,389 to $297,000 for Diet Drug Users and from $500 to $3,000 for Derivative Claimants Diet Drug Users, Representative Claimants, and Derivative Claimants Obtain Echo by January 3, 2003, mail GRAY Form promptly to show FDA Positive or mild mitral diagnosis.
Mail BLUE Form by May 3, 2003.
Mail GREEN form by December 31, 2015.
- Prescription records
- Echo report- Echo tape or disk
- Medical records
- Attorneys' fees and costs information

To qualify for Fund B Matrix-Level Benefits the claimant must have suffered either "FDA Positive regurgitation or mild mitral regurgitation" after using the diet drugs and "on or before January 3, 2003, you have the right to recover monetary compensation if you presently have serious valvular heart disease ('VHD') or later develop serious VHD at any time before December 31, 2015." (AHP Settlement Trust - Office Notice of Final Judicial Approval at p. 9). The diagnosis must be made by a Board-Certified cardiologist or cardiothoracic surgeon.

There are five levels of serious VHD that qualify for payment under the Settlement. These levels can be summarized as follows:

Matrix Level I: Severe VHD or FDA Positive regurgitation with an infection in the heart;

Matrix Level II: Moderate to severe VHD with signs of injury to the heart;

Matrix Level III: Cases where valve repair or replacement surgery is performed or recommended;

Matrix Level IV: Serious complications of VHD or valve-related surgery such as a serious stroke;

Matrix Level V: Very serious complications of VHD or valve-related surgery, such as death or a heart transplant.

A claimant with a Matrix-Level condition that gets worse may "step up" to a higher level of compensation. Claimants who first develop a Matrix-Level condition later may also receive benefits if such condition is diagnosed by a qualified physician on or before January 3, 2003. The claim must be properly registered no later than May 3, 2003. Proper registration allows a claimant to seek Matrix-Level Benefits up to December 31, 2015.

Matrix Level claims based on Endocardial Fibrosis are not restricted to the May 3, 2003 filing deadline. In cases where Endocardial Fibrosis is diagnosed by a qualified physician on or before September 30, 2005, the claimant has until January 31, 2006 to register his or her claim.

Since the rules governing Matrix-Level Benefits are extensive and deal with extremely serious conditions, we strongly urge anyone who may be suffering from such injuries to contact the AHP Settlement Trust immediately for further information.

Finally, all claimants must be aware of the various mailing deadlines since the failure to comply with them will result in the loss of any and all rights that a claimant may have to receive benefits or to pursue claims against AHP and certain other potential defendants.

SEEK FUND A MEDICAL MONITORING BENEFITS
What You Want to Do Form To Mail To Register This Choice Other Forms You Must Mail For This Choice Postmark Deadline To Mail Forms
Free Echocardiogram in the Screening Program BLUE Form None August 1, 2002
Free Echocardiogram in the Compassionate and Humanitarian Program BLUE Form BROWN Form August 1, 2002
Reimbursement for Echocardiogram Received Outside the Trust's Screening Program (for those benefits not dependent on whether the Trust has sufficient funds) BLUE Form WHITE Form and GRAY Form Mail BLUE and WHITE Forms by May 3, 2003.
Mail GRAY Form as soon as possible after Echo
Reimbursement for Echocardiogram Received Outside the Trust's Screening Program (If the Trust has sufficient funds) BLUE Form WHITE Form August 1, 2002
Cash or Additional Medical Services BLUE Form GRAY Form (if echo done after 9/30/99) Mail BLUE Form by May 3, 2003
Prescription Cost Refund BLUE Form None August 1, 2002

SEEK FUND B MATRIX BENEFITS
What You Want to Do Form To Mail To Register This Choice Other Forms You Must Mail For This Choice Postmark Deadline To Mail Forms
Compensation for Matrix-Level Conditions You Have Now BLUE Form GREEN Form Mail BLUE Form by May 3, 2003
Mail GREEN Form by December 31, 2015
Preserve the Right to Seek Matrix-Level Benefits in the Future BLUE Form GRAY Form and GREEN Form Mail BLUE Form by May 3, 2003
Mail GRAY Form as soon as possible after Echo
Mail GREEN Form by December 31, 2015

SEEK TO OPT OUT OF SETTLEMENT
What You Want to Do Form To Mail To Register This Choice Other Forms You Must Mail For This Choice Postmark Deadline To Mail Forms
Intermediate Opt-Out (Must be diagnosed as FDA Positive for the first time after September 30, 1999, and by January 3, 2003, and must meet other requirements) ORANGE Form #2 None May 3, 2002
Back-End Opt-Out(Must be diagnosed as FDA Positive or having mild mitral regurgitation by January 3, 2003, must reach Matrix-Level condition for the first time after September 30, 1999, and must meet other requirements) ORANGE Form #2 BLUE Form Mail BLUE Form by May 3, 2003
File ORANGE Form #3 no later than May 3, 2003, or 120 days after the Diet Drug User knew or should have known of the Matrix-Level condition

If you wish to contact the AHP Settlement Trust directly, you may do so as follows: Phone Number: 1-800-386-2070, Address: AHP Settlement Trust, P.O. Box 7939, Philadelphia, PA 19101. Website: http://www.settlementdietdrugs.com.

For further information regarding the AHP Settlement Trust and the rights you or your loved one may have with respect to this matter contact PARKER & WAICHMAN immediately by calling 1-800-YOURLAWYER or visiting http://www.yourlawyer.com.

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