Hexion Specialty Chemicals, Inc. Announces Expiration and Final Results of the Previously Announced Modified Dutch Auction Tender Offer for Debentures

COLUMBUS, Ohio--Hexion Specialty Chemicals, Inc. (“Hexion”) announced today the expiration and final results of its previously announced cash tender offer (the “Tender Offer”) to purchase its outstanding 8.375% Debentures due 2016 (CUSIP No. 099599AE2) (the “8.375% Debentures”), 9.200% Debentures due 2021 (CUSIP No. 099599AH5) (the “9.200% Debentures”), and 7.875% Debentures due 2023 (CUSIP No. 099599AJ1) (the “7.875% Debentures” and, together with the 8.375% Debentures and the 9.200% Debentures, the “Notes”), up to the maximum aggregate principal amount that Hexion can purchase for $20,000,000.

The Tender Offer expired and the early participation date for the Tender Offer occurred at midnight, New York City time, on June 8, 2009. Hexion has accepted for purchase all of the Notes validly tendered (and not validly withdrawn) in the Tender Offer. The aggregate principal amount of the 8.375% Debentures validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $5,031,000, representing approximately 6.49% of outstanding 8.375% Debentures. The total consideration payable per $1,000 principal amount of 8.375% Debentures is $280.00 (plus accrued but unpaid interest as described below). The aggregate principal amount of the 9.200% Debentures validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $5,289,000, representing approximately 4.98% of outstanding 9.200% Debentures. The total consideration payable per $1,000 principal amount of 9.200% Debentures is $280.00 (plus accrued but unpaid interest as described below). The aggregate principal amount of the 7.875% Debentures validly tendered (and not validly withdrawn) pursuant to the Tender Offer was $10,775,000, representing approximately 4.64% of outstanding 7.875% Debentures. The total consideration payable per $1,000 principal amount of 7.875% Debentures is $280.00 (plus accrued but unpaid interest as described below).

On the settlement date, expected to be June 12, 2009, Hexion will pay to The Depository Trust Company the total consideration payable to holders in the Tender Offer, and Global Bondholder Services Corporation, the depositary for the Tender Offer, will irrevocably instruct The Depository Trust Company to pay to the validly tendering holders the total tender offer consideration, including accrued but unpaid interest on the accepted Notes from the last applicable interest payment date to, but not including, the actual date of purchase.