OMAHA ¾ May 21, 2002 ¾ Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B), announced today that it intends to sell $250 million of a new type of security, named "SQUARZ", in a private placement to qualified institutional investors. The initial purchasers will have an option to purchase up to an additional $37.5 million of securities to cover over-allotment. The SQUARZ security is a unit consisting primarily of a senior note and a warrant to purchase the company’s stock at a premium. Berkshire expects the interest rate on the note will be lower than the installment payment rate on the warrant and as a result this will be the first security to carry a negative coupon.

The warrant will give the holder the right to purchase either shares of the Company's class A or class B shares at the holder’s option. Berkshire Hathaway will use the net proceeds from the issuance of the securities for general corporate purposes, including possible acquisitions, none of which are pending.

The securities have not been registered under the Securities Act of 1933 as amended, will be sold in the United States pursuant to an exemption from the registration requirements of the Securities Act, and may not be re-offered or re-sold in the United States unless they are registered or unless such sale is exempt from registration requirements of the Securities Act.

Berkshire Hathaway Inc. and its subsidiaries engage in a number of diverse business activities among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis.

Cautionary notice: Certain statements contained in this press release are "forward looking" statements within the meaning of the Private Securities Litigation Act of 1995. These statements are not guarantees of future performance and actual results may differ materially from those forecasted.