THE MORE YOU'VE BELIEVED CHEAP IS GOOD,
THE WORSE YOU'VE DONE THE LAST FEW YEARS. .................................. 1

MARKET CAPS CAN BE MISLEADING.
IT'S THE FUNDAMENTALS THAT COUNT. ................................................... 3

MANY VALUE STOCKS ARE DOWN FOR A GOOD REASON
- BECAUSE THEIR FUNDAMENTALS DETERIORATED. ............................... 4

IF OUR APPROACH SOUNDS FAMILIAR,
THERE'S A REASON WHY - BECAUSE IT IS. .................................................. 6

LAST YEAR, OUR EARNINGS ESTIMATE
FOR USG WOULD HAVE BEEN $3-10/SHARE. ................................................ 7

THREE THINGS HAVE TURNED NEGATIVE FOR USG
- AND WE CAN LIVE WITH TWO OF 'EM JUST FINE. .................................... 7

FINANCIAL RISKS WE CAN UNDERSTAND,
LEGAL RISKS ARE A DIFFERENT MATTER. .................................................. 9

I THINK USG IS VERY UNDERVALUED.
HOWEVER, ASBESTOS MUDDIES THE WATER. ............................................. 10

BASED ON OUR OWN INTERNAL ANALYSIS,
USG IS TRADING AT 25¢ ON THE DOLLAR. ................................................... 11