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Our Mission is to eradicate Mesothelioma as a life-ending disease.

Curing Mesothelioma: Who Will Take The Initiative?. the Mesothelioma Applied Research Foundation, inc. Our Mission is to eradicate Mesothelioma as a life-ending disease. Roger G. Worthington Founding Director MARF October 14, 2004. Admiral Elmo Zumwalt, Jr. U.S. Rep. Bruce F. Vento.

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Our Mission is to eradicate Mesothelioma as a life-ending disease.

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  1. Curing Mesothelioma: Who Will Take The Initiative? the Mesothelioma Applied Research Foundation, inc. Our Mission is to eradicate Mesothelioma as a life-ending disease. Roger G. WorthingtonFounding DirectorMARF October 14, 2004

  2. Admiral Elmo Zumwalt, Jr. U.S. Rep. Bruce F. Vento Mesothelioma Applied Research Foundation Steve McQueen Elizabeth Clancy, age 23 Meso does not respect Fame, Fortune, Power, Rank, Courage or Beauty

  3. V-GRAM No. 1 To: U.S. Government From: U.S. Rep. Bruce Vento Date: May 10, 2000 Re: “Please fund Meso research at a proportionate level.” “The Government hasn’t stepped up perhaps because we want to believe that in a short period of time, the disease will simply fade away. So, it seems the cure is avoidance of the asbestos; period. ... To my colleagues in government, please fund research for mesothelioma at a proportionate level. Of the more than 30,000 cancer research grants awarded by the Federal government since 1987, only 48 grants even mention mesothelioma.” (a) U.S. Rep. Bruce F. Vento October 7, 1940 - October 10, 2000 aBruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>

  4. Federal Medical Research: The Big Picture Budgets for National Institutes of Health/National Cancer Institute NIH BudgetNCI Budget 20021 $23,558,900,000 $4,113,000,000 20032 $27,343,400,000 $4,593,348,000 20042 $27,892,800,000 $4,736,000,000 • The National Institutes of Health (NIH) consists of over 20 funding organizations • The National Cancer Institute (NCI) is funded through the NIH - Research Project Grants: $2 billion - Cancer Prevention and Control: $ .5 billion - Intramural Research: $ .69 billion - Cancer Centers and SPOREs: $ .37 billion - R & D Contracts: $ .37 billion

  5. NCI Research Budget for Targeted Cancers (in Millions of dollars) 20034 % Change 19983 19993 20003 20013 20023 Estimate 02-03 AIDS $225.9 $239.2 $244.1 $237.8 $254.4 $265.0 4.20% Brain & Central Nerv. Sys. $ 54.3 $ 63.5 $ 71.9 $ 80.7 $ 95.2 $104.5 9.80% Breast Cancer $348.7 $387.2 $438.7 $475.2 $522.6 $564.6 8.00% Cervical Cancer $ 58.0 $ 66.3 $ 67.0 $ 72.6 $ 67.6 $ 71.3 5.50% Colorectal Cancer $121.0 $152.9 $175.8 $207.4 $245.0 $267.0 9.00% Head and Neck $ 41.9 $ 45.9 $ 47.0 $ 50.0 $ 58.9 $ 63.8 8.30% Hodgkin's Disease $ 8.3 $ 8.2 $ 9.4 $ 10.2 $ 11.8 $ 12.8 8.50% Leukemia $103.4 $122.2 $141.7 $154.0 $177.2 $194.9 10.00% Liver Cancer $ 38.1 $ 39.8 $ 46.2 $ 54.5 $ 62.5 $ 67.6 8.20% Lung Cancer $139.8 $151.0 $175.0 $206.5 $237.5 $256.6 8.00% Melanoma $ 50.3 $ 60.1 $ 67.9 $ 71.8 $ 82.3 $ 90.2 9.60% Multiple Myeloma $ 10.8 $ 15.3 $ 18.0 $ 19.7 $ 20.8 $ 21.8 4.80% Non Hodgkin's Lymphoma $ 57.1 $ 66.2 $ 70.4 $ 79.5 $ 85.6 $ 92.7 8.30% Ovarian Cancer $ 40.8 $ 56.5 $ 65.5 $ 76.9 $ 93.5 $101.0 8.00% Pancreatic Cancer $ 14.2 $ 17.3 $ 20.0 $ 21.8 $ 33.1 $ 36.5 10.30% Prostate Cancer $ 86.9 $135.7 $203.2 $258.0 $278.4 $311.0 11.70% Stomach Cancer $ 8.2 $ 7.6 $ 6.8 $ 9.0 $ 11.4 $ 12.5 9.60% Uterine Cancer $ 12.2 $ 13.8 $ 16.0 $ 18.8 $ 23.1 $ 25.2 9.10% Total NCI $2,551.30 $2,891.00 $3,311.10 $3,753.70 $4,176.70 $4,592.30 10.00%

  6. NCI Investment in Mesothelioma • FY2000 Basic - $ 76,000 Clinical - $1,390,000 Total: $1,466,000 • FY2001 Basic - $ 362,000 Clinical - $1,326,000 Total: $1,688,000 • FY2002 Basic - $ 823,000 Clinical - $1,623,000 Total: $2,446,000 • FY2003 Basic - $1,171,000 Clinical - $1,674,000 Total: $2,845,000 • Average Yearly Investment (2000-2003): $2.1 million The Clinical Budget includes epidemiology and “screening” projects, according to NCI spokesperson RO1 Research Relevant to Mesothelioma(a) • SV40 Small‑t Antigen and Human Cell Transformation • Molecular Genetic Alterations in Malignant Mesothelioma • SV40 sequences in human tumors: analysis & biologic • Amplification of TRIAL‑Induced Apoptosis in Mesothelioma • Targeting BCL‑XL Expression in Mesothelioma aRick, Weston (NIH/NCI). “Re: MARF/FedFunding Meso Research” Email to Author. 19 Aug. 2004

  7. Correlation Between NCI Funding and Mortality: A Measure of Priorities? 2003 Funding Incidence (Death)5(millions)Ratio AIDS 6 14,000 $ 265.0 1 / $18,928 Brain & Central Nervous System 13,100 $ 104.5 Breast Cancer 40,200 $ 564.6 Cervical Cancer 4,100 $ 71.3 1 / $17,340 Colorectal Cancer 57,100 $ 267.0 Head and Neck7 12,000 $ 63.8 Hodgkin's Disease 1,300 $ 12.8 1 / $9,846 Leukemia 21,900 $ 194.9 Liver Cancer 14,400 $ 67.6 Lung Cancer 157,200 $ 256.61 / $1,632 Melanoma 7,600 $ 90.2 Multiple Myeloma 10,900 $ 21.8 Non-Hodgkin's Lymphoma 23,400 $ 92.7 Ovarian Cancer 14,300 $ 101.0 Pancreatic Cancer 30,000 $ 36.5 Prostate Cancer 28,900 $ 311.0 1 / $10,761 Stomach Cancer 57,100 $ 12.5 Uterine Cancer 6,800 $ 25.2 1 / $3,705 Mesothelioma8 3,000 $ 2.8 1 / $933

  8. The Phantom Orphan Disease • Request for: - Proposals for Mesothelioma - Zero - Applications for Mesothelioma - Zero- Information on Mesothelioma - Zero • NCI does not code for mesothelioma as one of top 20 human cancers • Mesothelioma apparently included within “Lung Cancer” • Federal Government required to post grant opportunities, none using word “mesothelioma.” • Need the NIH to set initiative and solicit grant proposals(Target MM like AIDS, tobacco, leukemia and related cancers) • Only organization soliciting grant applications for MM: MARF

  9. Targeting AIDS: Once Incurable, Now Treatable AIDS Funding History 9($ in Thousands) NIH 2005 (est.) HIV Research Budget9 FY NCI NIH % NCI of NIH 1986 45,050 134,667 33% 1987 63,755 260,907 24% 1988 89,944 473,285 19% 1989 122,247 627,076 19% 1990 150,304 740,509 20% 1991 160,869 799,821 20% 1992 165,668 1,047,294 16% 1993 173,029 1,073,957 16% 1994 212,868 1,298,996 16% 1995 217,430 1,333,600 16% 1996 225,360 1,411,860 16% 1997 224,733 1,501,073 15% 1998 225,991 1,559,071 14% 1999 239,190 1,797,422 13% 2000 244,145 2,005,100 12% 2001 237,789 2,244,160 11% 2002 254,396 2,500,866 10% 2003 263,442 2,718,171 10% 2004 ~ 267,857 2,849,952 9% 2005 ~ 268,126 2,930,397 9% TOTAL $3,852,193 $29,308,184 13% Epidemiology $ 288,893,000.00 Etiology/Pathogenesis $ 726,759,000.00 Therapeutics $ 778,155,000.00 Vaccines $ 514,620,000.00 Behavioral Science $ 406,886,000.00 Training/Infrast. $ 169,056,000.00 Publicity $ 44,556,000.00 TOTAL: $2,930,397,000.00

  10. Targeting Consumer/Workplace-Connected Cancers, Despite Litigation Imbroglio Tobacco-Cancer Initiatives • $165 million over 7 years in 17 states, funded by NCI and ACS in 199110 • $76 million: Amount budgeted by NCI for tobacco-related disease research in 199711 • $80 million: Amount budgeted by NCI for tobacco-related disease research in 199811 • $552 million budgeted by NIH/NCI in 2004 for tobacco-related cancer research plus12 $180 million for “Youth and Tobacco” prevention programs • NCI BEGIN MODEL: Behavior, Exposure, Genetics, Intermediate Markers, Neoplasia, Predict/Improve patient survival13 Benzene-Leukemia (AML) Initiatives • 1998: $103.4 million invested by NCI14 • 2003: $200.9 million invested by NCI14

  11. Mesothelioma: A War-Related Disease Ignored by Congress • 32% of 3,000 Americans diagnosed with mesothelioma served in the U.S. Navy or worked in Navy shipyard15 • 410,000 WWII shipyard workers predicted to die from LC or Meso by 1980 per AIA Asbestos Cancer Study.16 4.5 million exposed to asbestos- 292,131 combat-related deaths for U.S. soldiers in WWII 17 • DVA has medical treatment programs for Agent Orange, Gulf War syndrome, POWs, radiation-induced cancers. [ Mesothelioma not presumed to be service-connected, veteran must prove. ] • Recent interest by DVA in a Registry/Database (consulted with MARF)

  12. Congress Funds DOD Medical Programs for Prostate, Breast, Ovarian Cancers (1992-2003) Congressionally Directed Medical Research Programs (CDMRP) (1992-2003)18 Proposals Proposals Amount for Research ProgramFYAppropriation Received Funded Research Breast Cancer 92–02 $1,375.3 M 19,840 3,671 $1,173.8 M Defense Women's Health 1995 $ 40.0 M 559 69 $ 32.8 M Osteoporosis 1995 $ 5.0 M 105 5 $ 3.7 M Neurofibromatosis 96–02 $ 90.3 M 299 103 $ 77.7 M Prostate Cancer 97–02 $ 395.0 M 3,432 797 $ 341.1 M Ovarian Cancer 97–02 $ 61.7 M 575 63 $ 52.5 M Peer-Reviewed  Medical Research 99–02 $ 144.5 M 558 98 $ 116.3 M DOD/VA 99–00 $ 6.8 M 88 9 $ 6.0 M Chronic Myelogenous Leukemia 02–03 $ 9.3 M 48 10 $ 7.5 M Prion 2002 $ 42.5 M 136 38 $ 37.2 M Tuberous Sclerosis 2002 $ 1.0 M 13 3 $ 0.9 M Institutionally Based Programs 95–02 $ 111.3 M 70 44 $ 99.0 M TOTALS:   $ 2282.7 M 25,723 4,910 $1,948.5 MMalignant Mesothelioma $ 00.0

  13. Honor AND Serve Our Heroes “I served my country proudly for 22 years. It is difficult for me to accept that after all these years my country has not solved the asbestos cancer menace. When are we going to finally launch an all-out assault on this damn tumor that has already taken too many good men and women down?” - Don Thorp, Chief Warrant Officer, Ret. US Navy, 1964-1985. Diagnosed with mesothelioma on December 4, 1999, underwent pleurectomy on January 25, 2000. Dr. Robert Cameron performing right pleural pleurectomy and decortication on Don Thorp, January 25, 2000. On Dr. Cameron’s advice, Don requested Interferon from the Salt Lake City VA in August of 2002. The VA refused. Don died on August 16, 2003.

  14. Honoring Heroes Starts with Noticing Them “National Mesothelioma Awareness Day”Proposed by Cong. Joe Hoeffel (D‑PA), H.Con. Res. 31719Recitals: • Little known about mesothelioma • Caused by asbestos • 3,000 Americans die each year • 30% exposed on Naval ships and in shipyards • One month exposure can cause meso 30 years later • Asbestos used in "virtually all" offices, schools, homes built before 1975 • No specific treatment for meso • Survival rate between 8 and 12 months • Rescue workers at Ground Zero at increased risk • Need to raise public awareness about the prevalence and seriousness of mesothelioma Killed in Committee

  15. V-GRAM No. 2 To: Asbestos Defendants From: U.S. Rep. Bruce Vento Date: May 10, 2000 Re: “Now it’s time to help clean up the mess.” “Asbestos companies have done nothing, even though it would certainly be in their interest to help detect and identify a treatment and cure. … I ask you to take a hard look at your responsibility. The asbestos industry once touted asbestos as ‘the magic mineral.’ They were wrong. Many of you have acknowledged your negligence. Now it’s time to help clean up the mess. MARF is not about fixing blame, we want to fix the problem.” (a) U.S. Rep. Bruce F. Vento October 7, 1940 - October 10, 2000 aBruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>

  16. Asbestos Litigation: Mass Tort Marred by Massive Waste • 1940s: mesothelioma discussed in medical literature 20 • 1960s: first mesothelioma products liability lawsuits • 2003: $70 billion transferred in compensation/costs/fees (RAND) • Chapter 11 reorganizations since 2000: 40 • Transaction costs exceed victims’ recovery: Ridenhour (40/60) Model CVCSC (36/64) Model Ridenour, Amy. National Center for Public Policy Research. A Federal Asbestos Trust Fund: Better for Victims, Better for the Economy. National Policy Analysis #463. April 2003. Angelina, Michael E. Biggs, Jennifer L., Asbestos Issues and Trends. 2003 CAS Spring Meeting, May 19,2003 Dickhoff, John J. War-Torn Landscape: The Asbestos Impact. CVCSC, 1998, Revised July 2001

  17. Chapter 11 Asbestos Reorganization Costs (2001-2003) For Six Debtors21 Yearly Projected Company 2001 2002 2003 Avg.* Total Cost** Armstrong World Ind. 25.5 28.1 25.7 26.43 $ 145.37M Babcock & Wilcox 0.0 86.0 39.0 41.67 $ 229.19M Federal Mogul 44.8 73.1 70.4 62.77 $ 345.24M Owens Corning 63.0 70.0 60.0 64.33 $ 353.82M U.S. Gypsum 14.0 22.0 19.0 18.33 $ 100.82M W.R. Grace 16.6 30.6 15.4 20.87 $ 114.79M Totals 163.9 309.8 229.5 234.40 $1289.23M *  Number derived by dividing total costs from 2001-2003 by three years.** Number derived by multiplying average yearly costs by the projected number of years to complete Chapter 11 reorganization (i.e., 5.5 years).  These numbers are of course estimates. Note:   Costs include legal fees, accounting fees, bankers fees and other professional and administrative costs.  Data gathered from SEC filings (Form 10-Q and 10-K) from respective debtor companies.  Owens Corning’s costs include payroll and compensation costs related to Chapter 11 reorganization and other, net costs.  Federal Mogul’s costs include employee retention costs and other direct costs.  According to the RAND 2002 Interim Report (Asbestos Litigation Costs and Compensation), no one has ever studied the costs of asbestos bankruptcy Chapter 11 reorganization (p. 72).  RAND notes that the typical cost is 3% of the firms value but asbestos reorganization costs, according to RAND, should be much higher because of the massive numbers of tort creditors.

  18. Projected Value of 11 Major Asbestos Debtor Trusts21 Projected Estimated Available Total Reorg. Trust Assets Insurance Costs Fund Bankrupt Entity Date of Filing (Billions) (Millions) (Millions) (Billions) A.P. Green Industries 02/14/2002 n/a $ 664 $ 22.55 $ 0.05 Armstrong World Ind.* 12/06/2000 $ 4.164 $ 236 $ 145.37 $ 1.5 Babcock & Wilcox* 02/22/2000 $ 0.840 $1,015 $ 229.19 $ 1.5 Combustion Eng. 02/17/2003 n/a n/a n/a n/a DII Industries (Halliburton) 12/16/2003 $ 4.225 $1,600 $ 31.92 $ 2.0 Federal Mogul* 10/01/2001 $10.15 $ 771 $ 345.24 $ 2.0 Kaiser Aluminum 06/09/2000 $ 3.364 $ 501 n/a $ 1.0 NARCO/Honeywell 01/04/2002 $ 1.4 $1,400 n/a $ 2.5 Owens Corning* 10/05/2000 $ 6.494 $ 59 $ 353.82 $ 3.4 Pittsburgh Corning 04/01/2000 $ 0.108 $ 700 n/a $ 3.0 U.S. Gypsum* 06/25/2001 $ 3.2 $ 76 $ 100.82 $ 1.2 W.R. Grace Co.* 04/02/2001 $ 2.493 $ 360 $ 114.79 $ 1.1 TOTALS$36.438B$7,382M $1,343.67M$19.250B Projected Present Value of All Pending Asbestos Trusts: $65 Billion(a) * These six debtors have, collectively, almost $30 billion in assets plus roughly $6 billion in insurance available to pay asbestos claims. Note: Value of Trust Fund is based on company cash contributions, available insurance, bank notes and the sale of new common stock. a “Trends In Claims Filing and Asbestos Verdicts," Asbestos, p. 2 (Sept. 2004) (quote from David Austern, Trustee of Manville Personal Injury Settlement Trust, p. 70)

  19. Pink Panther Gives MARF the Pink Slip • In 1999, OCF agreed to serve on MARF’s Board of Directors • OCF pledged $1 million to MARF, pays $100,000 calling it “sound business” “This will confirm Owens Corning’s pledge to MARF of $1,000,000.00 over the next five years. … We welcome this opportunity to work together on our common goal of curing mesothelioma…” • 11 months later, OCF files Chapter 11 Reorganization, leaving MARF with an I.O.U for $900,000 while it sets course to burn through about $350 million in “professional” fees over the next 5-6 years. Bankrupt? Sales Strong, Sponsors NASCAR > NASCAR Primary Sponsor = Visibility on car’s hood > $6 million to $18 million a season22 Eagle Motorsports - ‘Earl’ ( 2002)

  20. Sampling of Wealth of 12 Solvent Defendants23 Stockholder's Equity Market Cap as of Companylatest fiscal year in billions8/23/04 in billions Honeywell $ 10.729 $ 30.332 GM $ 27.773 $ 23.352 GE $ 98.282 $343.122 Georgia Pacific $ 5.749 $ 8.576 Viacom $ 63.493 $ 61.906 Ford $ 13.561 $ 25.705 Halliburton $ 1.736 $ 12.491 Dow $ 9.898 $ 37.999 Met Life $ 21.316 $ 27.399 MMM $ 8.457 $ 62.851 Owens-Illinois $ 1.025 $ 2.433 Phillips Electronics $ 16.026 $ 30.717 TOTALS: $278.045 $666.883 RAND estimates that over 6,000 defendants have been sued in asbestos litigation.

  21. V-GRAM No. 3 To: Trial Lawyers From: U.S. Rep. Bruce Vento Date: May 10, 2000 Re: Your client’s “first priority is life.” “Billions of dollars have been spent on litigation since mesothelioma was first reported in the early 1950s – millions on experts who are paid to prove and deny causation alone. But a pittance has been spent on finding a cure. … To the trial lawyers, for both sides, I ask you to expand your role as advocates. You have done good work in advocating for your clients, but every mesothelioma patient’s first priority is life. He or she wants to live.” (a) U.S. Rep. Bruce F. Vento October 7, 1940 - October 10, 2000 aBruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>

  22. Asbestos Litigation: A Lawyer’s Gold Rush? • Using CVSC model (i.e., 37% to Defense fees; 36% to Plaintiff; and 27% to PI Lawyer), and assuming $70 billion exchanged hands through 2003, lawyers have done…very well. Defense Fees : $25.9 billionPlaintiffs Fees : $16.9 billionTOTAL : $42.8 billion • Projected $100 billion over next decade Defense Fees : $37 billionPlaintiffs Fees : $27 billionTOTAL : $64 billion • Projected $130 billion Price Tag over thenext two decades (by Tillinghast-Towers Perrin, 2003) High Hopes (Oct. 7, 1999) The Enemy Debulked % Contributions to MARF, 2000-2004Plaintiffs : 31% (26)Plaintiff Lawyers : 40% (27)Corp. Defendants : 6% (6)Family/Friends : 21% (4,472)Defense Lawyers : 0% (0) Thankful (Oct. 28, 1999). Despite aggressive surgery, Hans Hoffacker passed away several months later. Barbara Hoffacker donated her entire settlement to MARF.

  23. Sampling of Wealth of Top Asbestos Trial Lawyers 2001 Est. Worth Peter Angelos (MD) $319 million By Jeff Blair. Baseball Reporter. Friday, August 30, 2002 – Print Edition, Page S1 2000 Est. Income Richard Scruggs (MS) $29.5 million Fred Baron (TX) $21 million Ron Motley (SC) $18.75 million John O'Quinn (TX) $16.5 million John Eddie Williams (TX) $16.2 million Joe Rice* (SC) $15 million Walter Umphrey (TX) $12.5 million Wayne Reaud (TX) $12.5 million Harold Nix (TX) $10 million “Killer Lawyers,” Forbes, May 14, 2001, pp. 134-136 * Motley Rice (formerly Ness Motley) have represented over 96,000 asbestos plaintiffs since the 1980s. Rice and Motley helped engineer the $246 billion tobacco settlement, earning fees between $2 and $3 billion.

  24. V-GRAM No. 4 To: Drug/Bio Tech Companies From: U.S. Rep. Bruce Vento Date: May 10, 2000 Re: “Solving Meso’s Mysteries can help cure other cancers.” “Drug companies won’t invest money to find a cure because “only” 3-4,000 Americans are diagnosed annually. … To members of the drug and biotech industry, please help. Since this tumor is a microcosm of many solid tumors, every dollar spent to solve its mysteries could potentially help cure other forms of cancer – prostate, lung and breast cancers.”(a) U.S. Rep. Bruce F. Vento October 7, 1940 - October 10, 2000 aBruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>

  25. Drug Company Investment in Treatment: The Bottom Line • Average Cost to Develop New Cancer Drugs in U.S.24 - $800 million -- $1 billion - 50% increase in costs over last 10 years - 15 years ago, approx. 20 cancer drugs in trial, today over 400 • Eli Lilly: Alimta FDA approved in 200425 - Estimated R&D cost since 1983 : $1 billion - Alimta recently FDA approved for NSCLC - Lilly predicts $1 billion in sales per year in next 3-4 years - FDA approval for pancreatic, colon and breast cancer next? • Drug Companies in 2004 invested $33.3 billion on R & D for new drugs, more than NIH budget for same year, i.e., $27.8 billion (per PhRMA) • 15+ years to develop preventive drugs/vaccines at increasing cost (Cox II inhibitors and statin drugs not FDA approved for MM prevention or treatment)

  26. V-GRAM No. 5 To: MARF From: U.S. Rep. Bruce Vento Date: May 10, 2000 Re: Meso “patients need advocates in the labs and in Congress.” “Meso patients have advocates in the courtroom. They also need advocates in the laboratories and in the corridors of congress where some cancer research money is allocated. AIDS, breast and prostate cancer all have their advocacy groups. MARF should fill the void for mesothelioma patients.”(a) U.S. Rep. Bruce F. Vento October 7, 1940 - October 10, 2000 a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>

  27. MARF: Good Start • 15 research grants funded, $1.3 million (detection/treatment/cure) • Ban Asbestos in America Act (SB 1115)26- $140 Million Meso Research & Treatment Program- $2.5 million per year for 10 centers of Merit each- Admiral Elmo Zumwalt Mesothelioma Registry- Bruce Vento Tissue Bank- Medical training, education, web resource, annual symposium Admiral Elmo Zumwalt, Jr. November 29, 1920 – January 2, 2000 • Fairness in Asbestos Injury Resolution Act (SB 2290)- Dr. Frist rejects most of MARF proposal- Allows $10 million per year for 10 centers of MERIT

  28. Fixing The Problem 1. Allocate Percentage of  Asbestos Debtor Trust to MARF • Trustee has duty of care, loyalty and good faith towards claimants/future claimants • Claimants deserve compensation and best efforts to reduce epidemic/prolong life/ameliorate suffering • Enormous Cash Pool: Big Ten Value @ 20 Billion Aggregate Present Value of All Debtors at $65 billion (per MPIST) • Current Asbestos Trusts valued between $4 -- $8 billion • 1% allocation from overall future Trusts to research: $650 million • MARF urging trial lawyers on creditors committees to advocate for providential change to remedies paradigm 2. Congressionally Directed Medical Research Program for Meso • MM for Navy Vets/SY workers is “war-related disease.” • Direct appropriation to DOD/DVA in collaboration with Asbestos Czar from MARF • Competitive peer-reviewed, targeted grants, randomized/blind trials recruitment, clinical database, tissue bank, SPOREs type collaboration. • Modeled after DOD CDMRPs for Breast Cancer (est. $1.5+ billion) and prostate cancer ($500+ million)

  29. Fixing The Problem 3.  Tax on Sale of Asbestos-Containing Products • 25% cancer prevention tax, revenue held in trust for medical research • 100% of ACPs in U.S. today from Canada • 2002: 6,850 metric tons consumed in U.S. • 2003: 4,650 metric tons consumed in U.S. • $290 million: value of manufactured ACPs (roofing products, friction products, gaskets, other) • Tax revenue: $72.5 million annually (based on 25% cancer tax) 4.  Federal Compensation Trust Fund: Meso Research & Treatment Program • Estimated $140 billion to $156 billion over 27 years • “$140M in a $140B is nothing” – Senator Hatch’s Office • 1-2% of value, payable yearly • MARF Proposed $140 million MRTP (Ban Asbestos Act) - 10 centers of excellence - Zumwalt Registry/Vento Tissue Bank - Public awareness, medical training, symposium, web resources • FAIR Act (SB. 2290): $10 million for five years for Centers of Excellence 5.  NIH Funding Proportionate to Risks/Incidence/Death • 2000 to 2003, NCI spent $8.4 million: <%.1 of NCI's budget for all cancer research • Fund MM research proportionate to other cancers (e.g. cervical cancer) • Targeted RFAs, Catalyst for Cure, Asbestos Czar, Roadmap Initiatives

  30. Fixing The Problem 6.  Surcharge on Asbestos Third Party Settlements • 1-2% of settlement paid by settling defendant • Polls: survey shows patients willing to match lawyers % contribution • 2001: $1.7 Billion Paid by Mftrs/Insurance 1% surcharge: $17 million 2% surcharge:  $34 million • Revenue held in Trust by MARF for peer review grant system • Surcharge on plaintiffs attorneys fees • Mechanism for plaintiff voluntarily contributing % of compensation 7. Private (Voluntary) Sources • Trial lawyers  (give something back; survival primary) • Corporate defendants  (clean up your mess, close Pandora's box, sound business) • Drug companies (broad application other solid tumors) • Asbestos exposed/injured (survival/prevention) • Labor unions (monitoring) • Testifying Professional Experts • Charitable donations patients/families

  31. WARREN Z-GRAM “Send Lawyers, Guns and Money…” The Mesothelioma epidemic has hit the fan January 24, 1947 - September 7, 2003

  32. Give Hope to Mesothelioma Patients “MARF is here to begin a new chapter. We believe that mesothelioma can be cured, if we are committed, if we mobilize, if we apply our collective brains and strength. … Every single day a patient lives, hope remains that a cure can be found. If we know that our best and brightest are working on fixing the problem, we’ll have greater reason – greater hope – to continue the fight.” (a) aBruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>

  33. the Mesothelioma Applied Research Foundation, inc. Our Mission is to eradicate Mesothelioma as a life-ending disease. Roger G. WorthingtonFounding DirectorMARF October 14, 2004

  34. References 1 U.S. Department of Health and Human Services, FY 2004 Budget in Brief, NIH Overview by Institute (p. 30), <http://www.hhs.gov/budget/04budget/fy2004bib.pdf> 2 U.S. Department of Health and Human Services, Budget in BriefFY 2005, NIH Overview by Institute (p. 34), <http://www.hhs.gov/budget/05budget/fy2005bibfinal.pdf> 3 U.S. Department of Health and Human Services. Public Health Service. National Cancer Institute. Fact Book (2002), Section on Budget Data (B-8). <http://www3.cancer.gov/admin/fmb/02factbook.pdf> 4 U.S. Department of Health and Human Services. Public Health Service. National Cancer Institute. Fact Book (2003), Section on Budget Data (B‑8). <http://www3.cancer.gov/admin/fmb/03Factbk.pdf> 5 American Cancer Society, Inc., Surveillance Research (2003). Cancer Facts & Figures 2003 (p. 4). <http://www.cancer.org/downloads/STT/CAFF2003PWSecured.pdf> 6 Central Intelligence Agency. The World Factbook 2004. United States. 14 September 2004. <http://www.cia.gov/cia/publications/factbook/geos/us.html> 7 Timothy A Jamieson, et al. “M6P/IGF2R Loss of Heterozygosity in Head and Neck Cancer Associated with Poor Patient Prognosis.”BMC Cancer 2003,3:4. 13 February 2003. <http://www.biomedcentral.com/content/pdf/1471‑2407‑3‑4.pdf> 8 U.S. Department of Health and Human Services. Public Health Service. Centers for Disease Control and Prevention. Work‑Related Lung Disease Surveillance Report 2002. May 2003. Section 7: Malignant Mesothelioma. <http://www.cdc.gov/niosh/docs/2003‑111/pdfs/2003‑111.pdf>

  35. References 9 Department of Health and Human Services. National Institutes of Health. Office of AIDS Research. OAR FY 2005 Congressional Budget Justification. <http://www.nih.gov/od/oar/public/pubs/fy2005/2005cj.pdf> Department of Health and Human Services. National Institutes of Health. Office of AIDS Research. OAR FY 2004 Congressional Budget Justification. <http://www.nih.gov/od/oar/public/pubs/fy2004/fy2004CJ.pdf> Department of Health and Human Services. National Institutes of Health. Office of AIDS Research. OAR FY 2003 Congressional Budget Justification <http://www.nih.gov/od/oar/public/pubs/fy2003/fy2003cj.pdf> 10 U.S. Department of Health and Human Services. Centers for Disease Control. National Center for Chronic Disease Prevention and Health Promotion. Office on Smoking and Health. Chronology of Significant Developments Related to Smoking and Health. May 14, 2004. <http://cdc.gov/tobacco/overview/chron96.htm> 11 National Cancer Institute. U.S. National Institutes of Health. Questions and Answers on NCIs Tobacco Research Implementation Plan.  November 19, 1998. <http://www.cancer.gov/newscenter/tobaccoQA> 12 U.S. Department of Health and Human Services. National Institutes of Health. Estimates of Funding for Various Diseases, Conditions, Research Areas.  <http://www.nih.gov/news/fundingresearchareas.htm> 13 National Cancer Institute. Research on Tobacco and Tobacco-Related Cancers. A Plan and Budget Proposal for Fiscal Year 2005. The Nations Investment in Cancer Research. Broad Research Priorities: Public Health Emphasis Areas. Section on NCI Develops New Framework for Interdisciplinary Studies. <http://plan.cancer.gov/tobacco.html#sec5> 14National Cancer Institute. A Snapshot of Leukemia. February 2004. <http://prg.cancer.gov/snapshots/Leukemia‑Snapshot.pdf> 15 H.Con. Res. 317, 108th Cong., 1st Sess. October 30, 2003. <http://thomas.loc.gov/> 16 American Insurance Association (1980). "Estimates of potential liability from asbestos and DES related injury (draft preliminary report)." Presented to the task force on tort liability for cumulative trauma and latent injury. <http://www.ewg.org/reports/asbestos/documents/pdf/AIA‑Fullnew.pdf>

  36. References 17 Jason McDonald (2000). Casualties in World War II. World War II Multimedia Database. <http://www.worldwar2database.com/html/frame1.htm> 18 Department of Defense. U.S. Army Medical Research and Materiel Command. Congressionally Directed Medical Research Program. September 22, 2004. <http://cdmrp.army.mil/. 19 H.Con. Res. 317, 108th Cong., 1st Sess. October 30, 2003.< http://thomas.loc.gov/> 20 Carroll, Stephen J., et al. RAND Institute for Civil Justice. Asbestos Litigation Costs and Compensation: Interim Report. A Documented Briefing. 2002. Available at <http://www.rand.org/publications/DB/DB397/DB397.pdf> 21 Securities and Exchange Commission. Form 10-K Filings. Year Ending December 2003. Disclosure Statements of: Armstrong World Industries, Babcock & Wilcox, Federal Mogual, Owens Corning and U.S. Gypsum. 22 NASCAR (2004). Turner Sports Interactive, Inc. The Cost and Value of Team Sponsorships. The Cost and Value of Nextel Cup    Sponsorships. <http://www.nascar.com/2004/kyn/nascar_101/05/20/team_costs/index.html> Paul D. Kretkowski/American Thunder. FOX Interactive Television, LLC (2004). FOXSports.com. A piece of the action:What it really costs to sponsor a NASCAR team. <http://msn.foxsports.com/id/2658556> 23 Carroll, Stephen J., et al. RAND Institute for Civil Justice. Asbestos Litigation Costs and Compensation, p. 81. Monograph November 2003 24 Pharmaceutical Research and Manufacturers of America. Phamaceutical Industry Profile 2004. (Washington, DC: PhRMA, 2004). <http://www.phrma.org/publications/publications//2004‑03‑31.937.pdf> 25 Vogelzang, Nicholas. “Re: Lilly’s Bill for Alimta.” E-mail to Author. August 20, 2004 26 S. 1115, 108th Cong., 1st Sess. § 417E (2003)

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