Trinity Industries Makes Announcement

Business Wire, Nov 5, 1996

DALLAS--(BUSINESS WIRE)--Nov. 5, 1996--On November 4, 1996, a jury sitting in the United States District Court for the Southern District of New York returned a verdict adverse to Trinity Industries, Inc. and CIGNA, formerly Aetna Insurance Company, in the retrial of an action brought against Trinity by Morse/Diesel, Inc.

In August, 1982, Trinity entered into a subcontract with Morse/Diesel for the fabrication and erection of structural steel for the construction of the Marriott Marquis Hotel in Times Square, New York City, New York. In August, 1984, Morse/Diesel commenced the action stated above against Trinity and CIGNA for damages allegedly caused by Trinity's and its erection subcontractor's performance of the structural steel contract. CIGNA is the bonding company for Trinity on the subcontract.

A verdict was rendered in favor of Morse/Diesel in the amount of $31,000,000 plus interest from July 18, 1984. A verdict was rendered in favor of Trinity on its counterclaim of $6,000,000 plus interest from December 18, 1984.

Trinity has been advised that it has substantial arguments against the validity of the verdict, and it will pursue all available avenues in the post-trial and appellate review processes. While Trinity's ultimate liability in this matter is difficult to assess, it is management's belief that the final outcome is not likely to have a material adverse effect on Trinity's financial position.

Trinity has not been involved in the fabrication of structural steel for multi-story buildings since 1989.

Trinity Industries, headquartered in Dallas, Texas, manufactures and markets a wide variety of products, principally in six business segments: Railcars, Marine Products, Construction Products, Containers, Metal Components and Leasing.

CONTACT: Trinity Industries

Michael E. Conley, Director of Investor Relations,

214/589-8935