Ashland, KY based

CEO:
Robert C. Sharp (Interim, resigned news release March 13, 2003)
Scott Tepper (Acting restructuring CEO & member of Board of Directors)

Judge:
William Howard

Date of ruling:
August 31, 2004  10:00 a.m.
Federal Courthouse, Lexington, KY

Date of Bankruptcy Filing:
November 2003
Lexington, KY

Number of employees Dec. 2002
3,500

Date of post, Dec. 2002.
Sales (mil.) $1,158.0

Debtor-in-possession:
Deutsche Bank Trust Co. Americas AG (NYSE:DB) $350 million (senior secured)
Nov. 14, 2003

New owner:
International Coal Group, chaired by Wilbur Ross Jr.
& Massey Energy

Purchase amount
$786 million

Important data:

Besides the Star Fire of Kentucky, employees and retirees, about 4,800 current and former employees and family members at other union mines operated by Horizon in the Appalachian region also lost health benefits because of the company's sale, according to the union.

What happens to persons who should receive pensions from Horizon Natural Resources:

FOR IMMEDIATE RELEASE
June 25, 2004

PBGC Public Affairs, 202-326-4040

Federal Pension Insurer Pays Benefits at Horizon Natural Resources

The Pension Benefit Guaranty Corporation today announced that it has assumed responsibility for the pensions of more than 4,800 employees of Horizon Natural Resources Co., the nation's fourth-largest coal producer, based in Ashland, Ky.

"The PBGC is stepping in because Horizon Natural Resources is liquidating in bankruptcy, and no asset purchaser has emerged to assume the underfunded pension plan," said Executive Director Brad Belt. "The PBGC will ensure that retirees continue to receive their monthly benefit checks without interruption up to guaranteed federal limits, and that other employees will receive benefits when they are eligible to retire."

The Horizon Natural Resources LLC Pension Plan is 34 percent funded, with $45 million in assets to cover almost $132 million in benefit promises. The PBGC estimates it will be liable for $75 million of the $87 million shortfall. The company also failed to make more than $7 million in required contributions to the plan. The pension plan ended as of March 31, 2004.

Coal miners numbers recap:

1923 coal miners:
705,000

1953 coal miners:
300,000

2003
75,000