Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the second quarter and six months ended June 30, 2000 and 1999 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions, except per share amounts).

Selected highlights regarding results for the quarter ended June 30, 2000 follow:

• Underwriting results at General Re, though very unsatisfactory, improved from the preceding quarter. Absent a mega-catastrophe, Berkshire expects this trend to continue.

• Underwriting results also improved from the preceding quarter at GEICO. Unit growth slowed with policies-in-force at June 30, 2000 up 18.0% from last year. This slowing is expected to continue, though premium growth should continue strong due to higher prices.

• National Indemnity’s reinsurance underwriting loss for the quarter includes about $50 million which stems from business that will generate significant amounts of "float" for many years.

• Berkshire’s consolidated "float" totaled approximately $25.8 billion at June 30, 2000, up approximately $500 million from year-end 1999. The annualized cost of float for the first half of 2000 was 5.4%, down slightly from 1999’s full year cost of 5.8%. It is anticipated that float will grow at a significantly greater rate during the remainder of 2000 and that, absent a mega-catastrophe, the cost is likely to decline further.

• Realized investment gain has been a recurring element in Berkshire’s net earnings for many years. The amount may fluctuate significantly from period to period. However, the amount of realized investment gain or loss for any given period has no predictive value or analytical value, in view of the net unrealized price appreciation now existing in Berkshire’s consolidated investment portfolio.

Berkshire’s second quarter interim report to shareholders will be posted on the Internet later today at approximately 6:00 p.m. central time where it can be accessed via www.berkshirehathaway.com.

Berkshire Hathaway and its subsidiaries engage in a number of diverse business activities among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis. Common stock of the Company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Certain statements contained in this press release are "forward looking" statements within the meaning of the Private Securities Litigation Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.