TIG will pay Silverstein and the Port Authority of New York andNew Jersey $12.5 million in addition to the $9.1 million thecompany already paid in connection with the terrorist attacks thatdevastated the Downtown market.

This settlement is due to the 2004 finding of a federal jurythat the terrorist attacks were in fact two individual terroristattacks and the 10 insurance companies are therefore required topay two full occurrence payments. TIG already paid the first $9.1million, and has agreed to pay the second $9.1 million in additionto $3.4 million in prejudgment interest, according to a statementfrom Silverstein Properties.

"This agreement is important because it will help to assure thatwe have all the money necessary to rebuild the World Trade Centeron the super-accelerated timetable everyone wants," Silversteinsays. "And this deal clearly demonstrates that we at Silversteinand our partners at the Port Authority are ready to settle ouroutstanding insurance claims on fair terms, as necessary, to keepthe rebuilding on track and on schedule."