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Hexion Specialty Chemicals Completes Acquisition of German Resins Business From Arkema

November 1, 2007 at 12:00 AM EDT

COLUMBUS, Ohio – (November 1, 2007)Hexion Specialty Chemicals, Inc., the world's leading producer of thermoset resins, announced today that it has completed its acquisition of the German resins and formaldehyde business of Arkema GmbH.

The business is based in the Leuna industrial park in Leuna, Germany, employs 100 people and generated revenues of € 101 million in 2006.  It manufactures formaldehyde and formaldehyde-based resins including urea-formaldehyde, melamine-urea-phenol-formaldehyde and other melamine-based resin systems. These resins are used to manufacture engineered wood panels such as oriented strandboard, particleboard and medium density fiberboard.  It also produces impregnation resins used to laminate decorative paper surfaces to wood products.   Hexion announced an agreement in late May to acquire the Arkema business.

“We are pleased to welcome this business and its associates into the Hexion organization,” said Dale Plante Hexion vice president, Forest Products – Europe.  “The Leuna operation and its team of people will strengthen Hexion's position in the European wood products market, particularly in the important German marketplace.”

Plante will serve as managing director of the business, which has been renamed Hexion Specialty Chemicals Forest Products GmbH.  It will become part of Hexion's global forest product resins network, which serves producers of engineered wood products around the world.

About Hexion Specialty Chemicals, Inc.
Based in Columbus, Ohio, Hexion Specialty Chemicals is the global leader in thermoset resins. Hexion's broad range of binding, bonding and coating resins, adhesives and specialty products are used by manufacturers around the world in a diverse range of industries and applications. Hexion had 2006 sales of $5.2 billion and employs more than 7,000 associates. Additional information is available at www.hexion.com.

Safe Harbor Language
Statements contained in this press release may include "forward-looking statements" about the Company's financial results under the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Forward-looking statements are based on our currently available financial, economic and competitive data and on business plans. Actual results could vary materially depending on risks and uncertainties that may affect the company's operations, markets, services, prices and other factors as discussed in our filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. There is no assurance that the company's expectations will be realized. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law.

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Contact:
Peter Loscocco
VP, Public Affairs
614-225-4127
peter.loscocco@hexion.com

John Kompa
Director, Investor Relations
614-225-2223
john.kompa@hexion.com