Pensioners' Corner

Hercules Incorporated
Hercules Plaza
1313 N. Market Street
Wilmington, Delaware 19894-0001
(302) 594-5000
http://www.herc.com

November 15, 2007

To: Hercules Retirees Eligible for Medicare

Hercules Retiree Medical Health Care Plan
January 1, 2008 Changes

Hercules recently reviewed our program to make sure we continue to offer a plan that meets your needs. The Company faces challenges as medical costs continue to rise due to increased utilization and healthcare inflation; however, we know it is our responsibility to provide you quality cost-effective coverage. As a result of our Medicare health plan review, we are pleased to introduce a new medical plan for our retirees over age-65 and others eligible for Medicare Parts A and B (PDF).

Effective January 1, 2008, our retiree plan will be insured and administered by a new insurance company. Depending on your state of residence, the plan will be insured by either: Transamerica Life Insurance Company, Monumental Life Insurance Company, or Transamerica Financial Life Insurance Company. These are all AEGON companies. The insurance company will provide you enhanced customer service where you can obtain information about the medical plan, as well as claims assistance. Your claims will also be processed more quickly and efficiently.

The plan continues to provide coverage in addition to the Medicare benefits paid by the government and includes revisions and enhancements to provide you with a plan at no additional cost. Some changes include:

• No upfront deductible for Medicare Part A, so the plan begins covering inpatient services immediately.
• Additional hospitalization coverage for Medicare’s 60 lifetime reserve days, plus 365 days thereafter.
• Physician office visits and other Medicare Part B services will be covered after a payment of the standard Part B deductible and an annual policy deductible totaling $200, coinsurance will apply. This program will provide reimbursement for outpatient care which is not reimbursed currently.
• Coverage for blood replacement at no cost for the first three pints.
• Private duty nursing covers a maximum of $25 per shift or 30 shifts per benefit period.
• Monthly premiums for 2008 and 2009 that are slightly below the 2007 rates.

More detailed and complete information will be coming. You will also receive a new ID card from the insurance company. Make sure to use your new card after January 1, 2008. If you have any questions about your premiums or your eligibility for this benefit, contact the Hercules Participant Service Center at 877-HERCBEN (877 437-2236).

Hercules Benefit Services