SUMMARY ANNUAL REPORT

COMPREHENSIVE HEALTH AND WELFARE

Following are the Summary Annual Reports for the Health and Welfare Plans currently administered by Hercules Incorporated. They include the Hercules Comprehensive Health Care Plan, EIN 51-0023450, Plan No. 594; the Hercules Incorporated Flexible Benefits Plan, EIN 51-0023450, Plan No. 596; the Hercules Dental Assistance Plan, EIN 51-0023450, Plan No. 580; the Hercules Group Life and Accidental Death and Dismemberment Insurance Plan, EIN 51-0023450, Plan No. 600; the Hercules Disability Wage Plan, EIN 51-0023450, Plan No. 700; the Hercules Group Long Term Disability Plan, EIN 51-0023450, Plan No. 702; the Hercules Dismissal Salary Plan, EIN 51-0023450, Plan No. 800; and the Hercules Dismissal Layoff Wage Plan, EIN 51-0023450, Plan No. 801; and the plan period for all plans is from January 1, 2006 to December 31, 2006. These annual reports have been filed with the U.S. Department of Labor's Pension and Welfare Benefits Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

This Summary Annual Report is intended for all participants who were covered by any of these benefit plans during the plan year indicated. Therefore, sections may not apply to everyone.

Insurance Information

The Company has contracts with insurance carriers to pay certain types of health claims incurred under the terms of the respective plan. A list of the names of the insurance carriers and providers of care appears below. The total premiums paid for the Plan year ending December 31, 2006, were $7,116,585.

In the case of “experience-rated” contracts with insurance carriers, the premium costs are affected by, among other things, the number and size of claims. The premiums paid under such “experience-rated” contracts for the Plan year ended December 31, 2006 were $242,612 and the total of all benefit claims paid under these “experience-rated” contracts during the Plan year was $196,204.

Basic Financial Statement

Total expenses were $2,880,989. This expense includes $42,526 in administrative expense, $196,204 in benefits paid directly to participants and beneficiaries, and $2,642,259 paid to insurance carriers and providers of care.

Welfare Plan Insurance Carriers and Providers of Care

In addition to the fully insured coverage listed above, the Company also provides benefits paid directly from Company assets. Below are claims that were paid under this self-insured (unfunded) coverage.

Your Rights to Additional Information

To obtain a copy of the full annual report, or any part thereof, write or call Hercules Incorporated, Attn: Hercules Benefits Group, 1313 North Market Street, Wilmington, DE 19894-0001, (302) 594-5000. The charge to cover the copying costs will be $10.00 for the full annual report.

You also have the legally protected right to examine the annual report at the main office of the plan administrator (Hercules Incorporated, 1313 North Market Street, Wilmington, DE 19894-001) and at the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N-5638, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.