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Board of Directors of Huntsman Corporation Determines Hexion Proposal Superior to Existing Basell Agreement

July 6, 2007 at 12:00 AM EDT

COLUMBUS, Ohio--(BUSINESS WIRE)--Hexion Specialty Chemicals Inc., an Apollo Management L.P. portfolio company (“Hexion”), today announced that the Transaction Committee (comprised of Huntsman independent directors) and the Board of Directors of Huntsman Corporation (“Huntsman”) (NYSE: HUN) have determined that Hexion's proposal to acquire Huntsman for $27.25 per share, in cash (transaction value $10.4 billion including debt) constitutes a Superior Proposal under the terms of the current merger agreement between Huntsman and Basell AF (the “Basell Agreement”). Huntsman has advised Hexion that it has provided notice to Basell, which after the expiration of three business days would entitle, but not require, Huntsman's Board of Directors or a committee thereof to make an Adverse Recommendation Change (as defined in the Basell Agreement), subject to the terms and conditions of the Basell Agreement. In determining whether to make an Adverse Recommendation Change, Huntsman has advised Hexion that the Board of Directors of Huntsman or the Transaction Committee will take into account any changes to the financial terms of the Basell Agreement proposed by Basell in response to the notice of Adverse Recommendation Change. Huntsman has advised Hexion that its decision is not, and should not be construed as a change by its board or its transaction committee in its recommendation of the Basell Agreement. Until Huntsman's board or transaction committee takes further action pursuant to the terms of the Basell Agreement, it continues to recommend the transaction with Basell to its shareholders. The terms of Hexion's proposal were further described in a press release issued by Huntsman on July 3, 2007.

There can be no assurance that a transaction between Hexion and Huntsman will be agreed. Any such transaction would be subject to regulatory approvals and the affirmative vote of Huntsman's shareholders, as well as other customary conditions. Hexion's proposal is fully financed pursuant to commitments from Credit Suisse and Deutsche Bank.

About Hexion Specialty Chemicals, Inc.

Based in Columbus, Ohio (USA), Hexion Specialty Chemicals is the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion had 2006 sales of $5.2 billion and employs more than 7,000 associates. Additional information is available at

About Apollo Management

Founded in 1990, Apollo is a recognized leader in private equity, debt and capital markets investing. Since its inception, Apollo has successfully invested over $16 billion in companies representing a wide variety of industries, both in the U.S. and internationally. Apollo is currently investing its sixth private equity fund, Apollo Investment Fund VI, L.P., which along with related co-investment entities, has approximately $12 billion of committed capital.

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.