UNITED STATES DISTRICT COUR

EASTERN DISTRICT OF TEXAS

TEXARKANA DIVISION

THE STATE OF TEXAS,

Plaintiff,

v.

THE AMERICAN TOBACCO COMPANY; R.J. REYNOLDS TOBACCO COMPANY; BROWN & WILLIAMSON TOBACCO CORPORATION; B.A.T. INDUSTRIES, P.L.C.; PHILIP MORRIS, INC.; LIGGETT GROUP, INC.; LORILLARD TOBACCO COMPANY, INC.; UNITED STATES TOBACCO COMPANY; HILL & KNOWLTON, INC.; THE COUNCIL FOR TOBACCO RESEARCH - USA, INC. (Successor to Tobacco Institute Research Committee); and THE TOBACCO INSTITUTE, INC.

Defendants.

Civil Action No. 5:96CV91

JUDGE: DAVID G. FOLSOM

MAGISTRATE JUDGE: WENDELL C. RADFORD

JURY

*****************************************************************

PLAINTIFF’S INITIAL DISCLOSURE

Pursuant to Fed.R.Civ.P. 26(a)(1) and Article Two (1)(a) of the Courts Civil Justice Expense and Delay Reduction Plan, Plaintiff, The State of Texas, makes the following Initial Disclosure:

I.

PERSONS WITH KNOWLEDGE

[Article (1)(a)(I)]

The following are persons who are likely to have information that bears significantly on claims and defenses raised in this case:

1. Mary Sapp, Executive Director

Texas Department on Aging

1949 IH-35 South, 3rd Floor

Austin, Texas 78741

(512)444-2727

Texas Department of Aging is likely to have information that bears significantly on Plaintiff’s damages calculations.

Mary Sapp is the Executive Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

2. Agency Representative and/or Custodian of Record

Texas Department of Agriculture

9th Floor, Stephen F. Austin Bldg.

P. O. Box 12847

Austin, Texas 78711

(512)463-7541

Texas Department of Agriculture is likely to have information that bears significantly on Plaintiff’s damages calculations and claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

3. Terri Blier, Executive Director

Texas Commission on Alcohol and Drug Abuse

710 Brazos

Austin, Texas 78701

(512)867-8751

Texas Commission on Alcohol and Drug Abuse is likely to have information that bears significantly on Plaintiff’s damages calculations and claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

Terri Blier is the Executive Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

4. Agency Representative and/or Custodian of Record

State Auditor’s Office

206 E. 9th Street, Suite 1900

Austin, Texas 78701

(512)479-4700

The State Auditor’s Office is likely to have information that bears significantly on Plaintiff’s damages calculations.

5. Emily Untermeyer, Executive Director

Texas Cancer Council

211 East 7th, Suite 710

Austin, Texas 78701

(512)463-3190

The Texas Cancer Council is likely to have information that bears significantly on Plaintiff’s damages calculations.

Emily Untermeyer is the Executive Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

6. Agency Representative and/or Custodian of Record

Texas Department of Commerce

1700 N. Congress

P. O. Box 12728

Austin, Texas 78701

(512)936-0101

Texas Department of Commerce is likely to have information that bears significantly on Plaintiff’s damages calculations and claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

7. Agency Representative and/or Custodian of Record

Comptroller of Public Accounts

L.B.J. State Office Bldg.

Austin, Texas 78701

(512)475-0412

Comptroller of Public Accounts is likely to have information that bears significantly on Plaintiff’s damages calculations and claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

8. Jerry Ann Robinson, Project Director

Texas Office for Prevention of Developmental Disabilities

4900 N. Lamar, Room 2552

Austin, Texas 78751-2399

(512)483-5042

Texas Office for Prevention of Developmental Disabilities is likely to have information that bears significantly on Plaintiff’s damages calculations.

Jerry Ann Robinson is the Project Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

9. Mary Elder, Executive Director

Interagency Council on Early Childhood Intervention

4412 Spicewood Springs Road, Suite 600

Austin, Texas 78759

(512)502-4900

Interagency Council on Early Childhood Intervention is likely to have information that bears significantly on Plaintiff’s damages calculations.

Mary Elder is the Executive Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

10. Agency Representative and/or Custodian of Record

Texas Education Agency

1701 Congress Avenue

William B. Travis Bldg.

Austin, Texas 78701-1494

(512)463-9720

Texas Education Agency is likely to have information that bears significantly on Plaintiff’s damages calculations.

11. Jim W. Sarver, Director of the Group Insurance Division

Employees Retirement System of Texas

P. O. Box 13207

18th and Brazos

Austin, Texas 78701

(512)867-3217

Employees Retirement System of Texas is likely to have information that bears significantly on Plaintiff’s damages calculations.

Jim W. Sarver is the Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

12. Agency Representative and/or Custodian of Record

General Services Commission

1711 San Jacinto, Central Services Bldg.

P. O. Box 13047

Austin, Texas 78701

(512)463-3960

General Services Commission is likely to have information that bears significantly on Plaintiff’s damages calculations.

13. Tom Harrison, Executive Director

Texas Ethics Commission

1101 Camino La Costa

P. O. Box 12070

Austin, Texas 78752

(512)463-5800

Texas Ethics Commission is likely to have information that bears significantly on Plaintiff’s damages calculations and claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

Tom Harrison is the Executive Director of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

14. Agency Representative and/or Custodian of Record

Health and Human Services Commission

P. O. Box 13247

Austin, Texas 78711-3247

(512)424-6500

Health and Human Services Commission is likely to have information that bears significantly on Plaintiff’s damages calculations.

15. Agency Representative and/or Custodian of Record

Department of Human Services

701 W. 51st Street

Austin, Texas 78751

(512)438-3114

Department of Human Services is likely to have information that bears significantly on Plaintiff’s damages calculations.

16. Agency Representative and/or Custodian of Record

Department of Health

1100 West 49th Street

Austin, Texas 78756

(512)458-7236

Department of Health is likely to have information that bears significantly on Plaintiff’s damages calculations.

17. Terri Chaney, Program Administrator

Texas Incentive and Productivity Commission

E.O. Thompson Bldg., Room 401

Austin, Texas 78701

(512)475-4812

Texas Incentive and Productivity Commission is likely to have information that bears significantly on Plaintiff’s damages calculations.

Terri Chaney is the Program Administrator of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

18. Mary Keller, Senior Associate Commissioner

Texas Department of Insurance

333 Guadalupe

P. O. Box 149104

Austin, Texas 78714-9104

(512)475-1821

Texas Department of Insurance is likely to have information that bears significantly on Plaintiff’s damages calculations.

Mary Keller is the Senior Associate Commissioner of this agency and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

19. Agency Representative and/or Custodian of Record

Texas Department of Criminal Justice

Price Daniel, Sr. Bldg.

209 West 14th Street, Suite 500

Austin, Texas 78701

(512)463-9988

Texas Department of Criminal Justice is likely to have information that bears significantly on Plaintiff’s damages calculations.

20. Agency Representative and/or Custodian of Record

Texas Department on Licensing and Regulation

E.O. Thompson State Office Bldg.

P. O. Box 12157

Austin, Texas 78711

(512)463-3306

Texas Department on Licensing and Regulation is likely to have information that bears significantly on Plaintiff’s claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

21. Agency Representative and/or Custodian of Record

Mental Health and Mental Retardation

909 W. 45th Street

P. O. Box 12668

Austin, Texas 78711-2668

(512)206-4591

Mental Health and Mental Retardation is likely to have information that bears significantly on Plaintiff’s damages calculations.

22. Agency Representative and/or Custodian of Record

Texas Rehabilitation Commission

Central Office

4900 N. Lamar

Austin, Texas 78751-2316

(512)483-4055

Texas Rehabilitation Commission is likely to have information that bears significantly on Plaintiff’s damages calculations.

23. Agency Representative and/or Custodian of Record

Secretary of State

Capitol, 1st Floor, Room 1E.8

Austin, Texas 78701

(512)463-5763

The Secretary of State is likely to have information that bears significantly on Plaintiff’s damages calculations.

24. Agency Representative and/or Custodian of Record

Texas State Treasury

State Treasury Bldg.

200 E. 10th Street

Austin, Texas 78701-2436

(512)463-5971

Texas State Treasury is likely to have information that bears significantly on Plaintiff’s damages calculations and claims regarding Defendants’ alleged wrongful conduct in the State of Texas.

25. Agency Representative and/or Custodian of Record

Office of the Governor

P. O. Box 12428

Austin, Texas 78711

(512)463-1788

Office of the Governor is likely to have information that bears significantly on Plaintiff’s damages calculations.

26. Agency Representative and/or Custodian of Record

Texas Natural Resource Conservation Commission

P. O. Box 13087

Austin, Texas 78711-3087

(512)239-5525

Texas Natural Resources Conservation Commission is likely to have information that bears significantly on Plaintiff’s damages calculations.

27. Robert E. Molloy, Director of Employee Group Insurance

University of Texas System

702 Colorado Street, Suite 6.600

Austin, Texas 78701

(512)499-4616

The University of Texas System is likely to have information that bears significantly on Plaintiff’s damages calculations.

Robert R. Molloy is the Director of Employee Group Insurance for the University of Texas System and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

28. Steve Hassel, Associate Executive Director of System Human Resources

University of Texas A&M System

301 Tarrow, 5th Floor

College Station, Texas 77843

(409)845-2026

The University of Texas A&M System is likely to have information that bears significantly on Plaintiff’s damages calculations.

Steve Hassel is the Associate Executive Director of System Human Resources for the Texas A&M University System and is working to identify agency employees who may have knowledge of specific information relevant to this issue.

Plaintiff also believes the following individuals may have information pertaining to the Defendants’ lobbying activities, government relations, legislative tracking, campaign contributions and non-governmental organizational contributions:

Allen, Bill

Andres, Gary

Armstrong, Gaylord

Bankoff, Barbara

Bankoff, Barbara

Bartlett, Tuckie

Bible, Geoff

Blake, Roy

Bliss, Rich

Bring, Murray

Bring, H.

Brown, Dick

Brown, Bruce

Buechner, Congressman Jack

Burleson, Pate & Gibson

Buzzi, Aleardo

Calio, Nicholas E.

Campbell, Bill

Cavazos, Eddie

Chu, David

Clayton, Billy

Collier, Cal

Coombs, Bruce

Coslos, Ted

Costas, Theodore

Cowling, David E.

Craig, Hon. Larry E.

Culley, Robert

David, Dick

Devitre, D.

Dillard, Jack K.

Dollisson, John

Dowling, Ann

Dubois, Greg

Dunn, Warren

Dyer, Jim

Eschberger, Brenda

French, Mike

French, Stephanie

Fried, Don

Fritz, Randy

Gibson, Machree

Glennie, Larry

Goldstein, Leonard

Gomez, Frank

Greenbert, David

Gullahorn, Jack

Hamberger, Ed

Harkrider, Mark

Herbolsheimer, Bob

Herger, Wally

Houminer, Ehud

Ingram PC, Dick G.

Ison, Dan

Johnson, Gordon R.

Johnson, Robert

Jones, Buddy

Kaplin, Bobby

Keenan, J.

Kelly, Rusty

King, J.

Knox, George

Kochevar, John

Kristoff, Sandy

Leinhan, Kathleen

Levin, Micheal

Lewis, Bob

Liebengood, Howard

Lienhan, Kathleen

Locke, Gen

Luna, Albert

Manatt, Chuck

Maples, Bob

Matheson, Dan

Maxwell, Hamish

McDaniel, Demetrius

McDonald, Chuck

McGarry, Mignon

McWilliams, Andrea

Melver, B.

Millman, Amy

Murphy, John

Murray, R.W.

Murray, Bill

Nelson, Don

Nelson, Jack

Newman, Fred

Newton, Gary T.

Oldaker, Bill

O’Rourke, Rita

Parish, Steven C.

Plackett, J.

Polan, Kraege

Pouland, John

Rawls, Lee

Reed, Claire

Resnick, Frank

Rhatican, Bill

Ritts, Leslie

Roberts, Jack

Robinson, Bernie

Rogers, Ralph

Rove, Carl

Ryan, Kathleen

Scanlon, John

Schleuter, Stan

Schreer, P.

Smith, Guy

Smith, Greg

Smith, Owen

Spach, Jo F.

Stanton, Jim

Sykes, Larry

Tearno, Dan

Thomas, W.

Toomey, Mike

Varner, Cal

Viault, R.

Villarreal PC, Jose N.

Vinovich, Ralph

Wachs, Dahalia

Wager, Bob

Walters, Tony

Walton, June

Webb, W.

Wilhelm, Richard

Windburn, John

Winokur, Matt

Woods, Joe

Wynne, Buck

Zelkowitz, David.

The Plaintiff believes that the following individuals and/or firms may have information regarding the alleged misconduct by Defendants:

Shook, Hardy & Bacon

1200 Main Street

Kansas City MO 64105

Jones, Day, Reavis & Pogue

1450 G. Street, N.W.

Washington DC 20005

Covington & Burling

P. O. Box 7566

Washington DC 20044-7566

Jacob, Medinger & Finnegan

New York NY

Breslow, Lester

Califona, Joseph

Chilcote, Samuel

Dawson, Brennan

DeNoble, Victor

Farone, William

Goerlitz, David

Heep, Harriett

Homberger, Freddy

Johnson, F. Ross

Kastenbaum, Marvin

Lauria, Tom

Lincoln, Jetson

Mele, Paul

Merriman, Walker

Mold, James D.

Rivers, Jerome

Robinson, Joel

Sackman, Janet

Schechter, David

Stewart, Russell

Tamol, Ron

Teage, Claude

Tredennick, D.W.

Uydess, Ian

Velmans, Lest

Waiter, Charles

Wells, J. Kendrick

Wigand, Jeffrey S.

Williams, Merrill

Woodson, Walker

Zahn, Leonard

See also individuals listed on the attached list incorporated herein as Exhibit "A"..

Plaintiff continues to work to obtain additional information and will supplement this disclosure in accordance with Article Two (5). Additionally, as discovery progresses, Plaintiff shall reveal additional information as it is discovered.

II.

DOCUMENTS

[Article (1)(a)(ii)]

Enclosed are copies of documents (Bates Numbers DOCS00000-000723; HHSC000001-4624; HHSC005562-6081; HHSC006082-6562; HHSC006563-7044; HHSC007045-7226; HHSC004625-4964; HHSC004965-5561; and UCSF00001-1545) that are likely to bear significantly on claims and defenses raised in this case. Additional documents will be made available as soon as practicable as efforts are continuing to locate, identify and copy documents for purposes of disclosure.

Plaintiff has information stored in the form of computer data and data tapes that is likely to bear on claims and defenses raised in this case. Counsel for Plaintiff have notified counsel for the Defendants that they will provide this information subject to applicable confidentiality laws as soon as a mutually agreeable method for production of the data can be worked out.

Plaintiff also possesses or has access to various publicly available documents that may bear on claims and defenses raised in this case including:

a. U.S. Surgeon General Reports.

b. Reports and data published by agencies of the United States Government, such as the U.S. Department of Health Education and Welfare, the National Institutes of Health, the Department of Health and Human Services, the Center for Disease Control and Prevention, the Public Health Service, and the Census Bureau.

c. Publications of the American Cancer Society.

d. Print and broadcast media reports regarding the tobacco industry and the health-effects of smoking.

e. Publications in scientific and medical journals regarding cigarettes and the health-effects of smoking.

f. The Brown & Williamson Collection, Tobacco Central Archives, University of California San Francisco Library and Center for Knowledge Management (accessible via the Internet @ HTTP:\\www.library.UCSF.edu\tobacco).

Because this information is readily obtainable from other sources and because Defendants in all likelihood already possess this information, Plaintiff has not provided copies as part of this disclosure.

Plaintiff continues to work to identify documents that fall within the scope of Article Two(1)(a)(ii) and will supplement this disclosure in accordance with Article Two (5).

III.

DAMAGES

[Article (1)(a)(iii)]

This suit is intended to recover damages suffered by the State of Texas for the conduct set forth in the First Amended Complaint. The damages to the State generally fall into the following categories:

A. Medicaid damages

B. Damages to the employee insurance and retirement system

C. Damages resulting from health care provided by State funded health care providers that are not included in the Medicaid damages.

These initial computations are subject to continuing analysis and will be revised or supplemented if and as necessary. Certain assumptions and calculations are likely to change as additional information is accumulated. Since past damages are increasing daily, these damages will continue to increase.

Additionally, the damages pursuant to the antitrust laws, consumer protection laws and RICO provide for the award of attorney’s fees and other costs.

A. Medicaid Damages

Damages to the State of Texas begin with the inception of the Medicaid program in Texas in September 1967. The Medicaid Act itself was established by Title XIX of the Social Security Amendments Act of 1965.

Medicaid functions in two major ways: (1) as a kind of basic health insurance program; and (2) as a funding source for service to the aged and people with disabilities or with chronic long-term care needs.

Medicaid is financed jointly by the Federal government and the states. Texas’ matching rate for federal fiscal year 1994 is 64.18%. That is, the state must pay 35.82% of most Medicaid costs. Documents being provided to the Defendants provide this ratio for each year that it is available.

Under Texas law, the Texas Health and Human Services Commission (HHSC) has acted as the single agency for the Medicaid program since January 1993. Within HHSC, the Medicaid program is administered by the State Medicaid Director, Linda Wertz.

The number of Texans covered by Medicaid may be stated in several ways. One way is the "unduplicated count" which for the federal fiscal year 1993 was 2,308,443. Another way to state the Medicaid case load is the "monthly average" number of clients, which for federal fiscal year 1993 was 1,917,479. Additionally, in federal fiscal year 1993 there were about 358,000 "eligibles", which are persons enrolled in Medicaid, but who never actually incurred any claims. Documents being produced to the Defendants will provide this information for each available year.

The Center for Disease Control (CDC) has developed a computer model for estimating health care costs attributable to smoking. The latest version is called SAMMEC 2.1. The details of SAMMEC 2.1 are set forth in government documents that are being provided to the Defendants in the initial disclosure documents. Rather than repeating the details of the model in this document, the Defendants are referred to the complete document that has been produced.

Recently the CDC has begun developing a different model for estimating a smoking attributable fraction (SAF) that indicates the percentage of direct health care expenditures due to smoking. This method was described in the July 8, 1994 edition of CDC’s Morbidity and Mortality Weekly Report, Volume 43, No. 26. A copy of this article has been produced to the Defendants.

The team of scientists gathered by CDC received funding from the Robert Wood Johnson Foundation in addition to the CDC.

Rather than attempting to interpret the work of these scientists, a copy of their article is attached as Exhibit "B". The article is entitled "State Estimates of Publicly Funded Direct Medical-Care Expenditures Attributable to Cigarette Smoking, Results for Mississippi, 1980-1993."

The CDC team of experts has calculated damages to the State of Texas for the years 1980-1993, see Exhibit "C". That total is $2,223,720,000. The CDC team has put a present value on these past damages at $3,054,390,000. When 1994, 1995, and 1996 damages are added, the total will likely exceed $4 billion for past damages.

Future damages are believed to exceed $400 million per year. These yearly damages are expected to increase at a rate that exceeds the discount rates.

Punitive damages will be determined by the jury.

The State has asked for the recovery of attorney’s fees and costs, which will be calculated as the case progresses.

These damage figures will undoubtedly be revised and fine tuned before the trial of this case. Plaintiff believes that the amounts disclosed are extremely conservative and that these numbers will be revised upward.

B. Damages to the employee insurance and retirement system

The State seeks damages for past and future State funds spent for tobacco attributable health care costs incurred by the State in providing health-benefits to its retirees, employees, and their dependents. All State employees are provided health benefits by the State through the Employees Retirement System of Texas, the University of Texas System, or the Texas A&M University System. All three systems provide to their employees self funded health care plans and insured health care plans. For the most recent year, the cost incurred by the State in providing health care benefits through the Employees Retirement System of Texas, the University of Texas System, and the Texas A&M University System was approximately 1.2 billion, although a portion of the number includes premiums paid by employees for dependents. A significant amount of this number, is attributable to tobacco use. The State seeks damages for many years in the past and future. The underlying documents concerning this element of damages are being provided as part of the disclosure. Additionally, Exhibit "B" addresses the computations given as an example using the State of Mississippi.

C. Damages resulting from health care provided by State funded health care providers that are not included in the Medicaid damages.

The State seeks damages for past and future State funds spent for tobacco attributable medical costs incurred by certain State funded hospitals. The principle State funded hospitals include, among others, the University of Texas Medical Branch-Galveston, the University of Texas M.D. Anderson Cancer Center, the University of Texas Health Science Center-Tyler, and two hospitals operated by the Texas Department of Health: the South Texas Hospital in Harlingen, Texas and the Center for Infectios Disease in San Antonio, Texas. The amount of funds expended by the hospitals for unreimbursed medical care is not known at the time of this disclosure. The State will supplement its disclosure with this information when it is available. However, a significant portion of the amount is attributable to tobacco related medical care. The underlying documents concerning this element of damages are being provided as part of the disclosure.

IV.

INSURANCE AGREEMENTS

[Article (1)(a)(iv)]

Not applicable.

V.

PRIVILEGED DOCUMENTS

[Article (1)(a)(v)]

The computer data and data tapes identified in Section II contain privileged medical information regarding individuals not a party to this case and therefore must be redacted prior to production. To date, Plaintiff has identified no other privileged documents. In the event additional privileged documents are identified, Plaintiff will supplement this disclosure in accordance with Article Two (5).

For purposes of compliance with Section (1)(a)(v) of Article Two, Plaintiff contends that the employees of state agencies of the State of Texas identified in this disclosure should be considered as clients and/or client representatives for purposes of Rule 26(b)(1), Fed.R.Civ.P. Defendants are hereby notified that, prior to contacting, communicating or attempting to conduct discovery by any other means from state employees, Defendants must notify Plaintiff’s counsel of their intent to do so and are prohibited from contacting said State employee directly.

VI.

MEDICAL AND EARNINGS RECORDS

[Article (1)(a)(vi)]

Not applicable.

Respectfully submitted,

DAN MORALES

Attorney General of Texas

TX. Bar No.: 14417450

JORGE VEGA

First Assistant Attorney General

TX. Bar No.: 20533800

JAVIER AGUILAR

Special Assistant Attorney General

TX. Bar No.: 00936300

TOM PERKINS

Chief, Consumer Protection Division

TX. Bar No.: 15790850

HARRY G. POTTER, III

Special Assistant Attorney General

TX. Bar No.: 16175300

P. O. Box 12548

Capitol Station

Austin, TX. 78711-2548

(512) 463-2191

(512) 463-2063 Fax

OF COUNSEL:

LAURENCE H. TRIBE

Hauser Hall 420

1575 Massachusetts Ave.

Cambridge, MA 02138

ARTHUR MILLER

Areeda Hall 228

1545 Massachusetts Ave.

Cambridge, MA 02138

WALTER UMPHREY, P.C.

490 Park

P. O. Box 4905

Beaumont, TX. 77704

(409) 835-6000

(409) 838-8888 Fax

Tx. Bar No.: 20380000

ATTORNEY-IN-CHARGE

JOHN M. O'QUINN, P.C.

440 Louisiana St., Ste 2300

Houston, TX. 77002

(713) 223-1000

(713) 222-6903 Fax

Tx. Bar No.: 15296000

JOHN EDDIE WILLIAMS, JR.

8441 Gulf Freeway, Suite 600

Houston, TX. 77017

(713) 649-6464

(713) 943-6226 Fax

Tx. Bar No.: 21600300

REAUD, MORGAN & QUINN, INC.

801 Laurel

Beaumont, TX. 77701

(409) 838-1000

(409) 833-8236 Fax

Tx. Bar No.: 16642500

NIX LAW FIRM

205 Linda Drive

P. O. Box 679

Daingerfield, TX. 75638

(903) 645-7333

(903) 645-5389

Tx. Bar No.: 150410000

HUGH E. MCNEELY, of Counsel for

Provost & Umphrey Law Firm, L.L.P.

LSBA No.: 10,628

2901 Turtle Creek Drive, Ste 201

Port Arthur, Texas 77642

(409) 727-0800

(409) 727-7671 Fax

By: ______________________________________

HUGH E. MCNEELY

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing Plaintiff’s Initital Disclosure has this the 5th day of June, 1996 been properly forwarded to all known counsel of record as attached hereto as Exhibit "A" by hand delivery and/or facsimile and/or first class mail.

HUGH E. MCNEELY

EXHIBIT "A"

Stephen McCormick

Kirkland & Ellis

200 East Randolph Drive

Chicago IL 60601

Paul E. Stallings

Vinson & Elkins

1001 Fannin St.

Suite 2300

Houston TX 77002-6760

James N. Holtom

George McWilliams

John B. Greer III

Patton, Haltom, Roberts, McWilliams, Greer

P.O. Box 1928

700 Texarkana Nat’l Bank Bldg.

Texarkana TX 75504-1928

Robert McDermett

Jones, Day, Reavis & Pogue

1450 G. St., N.W.

Washington D.C. 20005

Harold Waldrop

Atchley, Russell, Waldrop, Hlavinka

1710 Moores Lane

P.O. Box 5517

Texarkana TX 75505-5517

Mary Elizabeth McGarry

Jacob S. Pultman

Simpson, Thacher & Bartlett

425 Lexington Ave

New York NY 10017-3954

Damond Young

Young, Kesterson & Picket

4122 Texas Blvd.

P.O. Box 1897

Texarkana AR-TX 75504

James E. Scarboro

Arnold & Porter

1700 Lincoln St

Suite 4000

Denver CO 80203

J Dennis Chambers

Harold Waldrop

Alan Harrel

Victor Hlavinka

Atchley, Russell, Waldrop & Hlavinka

1700 Moores Lane

P.O. Box 5517

Texarkana TX 75505-5517

Jerry L Mitchell, Jr.

Marjorie C. Bell

Kasowitz, Benson, Torres & Friedman

700 Louisiana St

Suite 220

Houston TX 77002

Kasowitz, Benson, Torres & Friedman

875 Third Avenue

New York NY 10022

William J. Crampton

Shook, Hardy & Bacon

1200 Main St

Kansas City MO 64105

Robert A. Gwinn

Gwinn & Roby

4100 Renaissance

1201 Elm St

Dallas TX 75270

Nicholas H. Patton

Patton, Tidwell, Sandefur & Paddock

4122 Texas Blvd

P.O. Box 1897

Texarkana TX 75504

Bruce Ginsberg

Davis & Gilbert

1740 Broadway

New York NY 10019

Winford L Dunn Jr

Dunn, Nutter, Morgan & Shaw

State Line Plaza

Box 8030

Texarkana AR 71854-5945

Steve Klugman

DeBevoise & Plimpton

875 Third Ave

New York NY 10022

William Key Wilde

Bracewell & Patterson

2900 South Tower Pennzoil Place

Houston TX 77002

Lea F. Courington

Gwinn & Roby

4100 Renaissance Tower

1201 Elm St

Dallas TX 75270

William E. Hoffman, Jr.

King & Spalding

2500 Trust Company Tower

191 Peachtree St. N.E.

Atlanta GA 30303

Thomas E. Riley

Chadbourne & Parke

30 Rockefeller Plaza

New York NY 10112

James O. Copley

Latham & Watkins

855 Third Avenue

New York NY 10022

Murray R. Garnick

Arnold & Porter

555 Twelfth St, N.W.

Washington DC 20004-1202

Allen M. Katz

Munger, Tolles & Olson

355 South Grand Avenue

35th Floor

Los Angeles CA 90071-1560

Peter C. Hein

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York NY 10019

Jack D. Maroney

Maroney, Crowley, Bankston, Richardson & Hull

1520 Austin Center

701 Brazos

Austin TX 78701

Morris Atlas

Atlas & Hall

818-820 Pecan Avenue

McAllen TX 78502

Bill Iverson

Covington & Burling

P.O. Box 7566

Washington DC 20044-7566