NOTE A1 — RESTATEMENT

The Company determined that the estimated loss contingency for the third quarter of fiscal 2013 was overstated by $28.3 million, producing an understatement of net income of $18.0 million for the three months ended February 28, 2013. At the same time, the Company determined that the estimated loss contingency for the three month periods ended August 31, 2012 and November 30, 2012 was understated by $11.4 million and $16.9 million, respectively. There is no impact on the estimated loss contingency or net income for the nine months ended February 28, 2013, as the $68.8 million charge was appropriately recognized on a year-to-date basis. The error was identified as a result of an investigation by the Audit Committee, with the assistance of independent advisors, into the timing of our third quarter of fiscal 2013 disclosure and accrual associated with the settlement of the previously disclosed GSA matter.

The Company’s Consolidated Statements of Income; Consolidated Statements of Comprehensive Income; Note 9. Contingencies and Other Accrued Losses; Note 12. Income Taxes; Note 14. Earnings Per Share; Note 15. Segment Information; and Note 17. Equity, included in this Form 10-Q/A have been restated to correct for the misstatements described above.

The following are previously reported and restated balances of affected line items in the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income for the three months ended February 28, 2013 (Unaudited).


	Three Months Ended February 28, 2013
	As reported			Adjustments			As restated
Consolidated Statements of Income
Estimated loss contingency	$	68,846		$	(28,344	)	$	40,502
Income (loss) before income taxes		(62,823	)		28,344			(34,479	)
Provision (benefit) for income taxes		(20,631	)		10,352			(10,279	)
Net income (loss)		(42,192	)		17,992			(24,200	)
Net income (loss) attributable to RPM International Inc. Stockholders		(42,356	)		17,992			(24,364	)

Earnings (loss) per share attributable to RPM International Inc. Stockholders:
Basic		(0.33	)		0.14			(0.19	)
Diluted		(0.33	)		0.14			(0.19	)

Consolidated Statements of Comprehensive Income
Net income (loss)		(42,192	)		17,992			(24,200	)
Total Comprehensive (Loss) Income		(57,236	)		17,992			(39,244	)
Comprehensive (Loss) Income Attributable to RPM International Inc. Stockholders		(58,409	)		17,992			(40,417	)