Hexion Specialty Chemicals Completes Purchase of Coatings & Adhesives Business from The Rhodia Group

COLUMBUS, Ohio--Jan. 3, 20061, 2006--Hexion Specialty Chemicals, Inc., the world's largest producer of thermoset resins, announced today it has completed its purchase of the decorative coatings and adhesives business unit of The Rhodia Group.

The business produces emulsion and powder latexes, pressure sensitive adhesives and anti-foam agents, acrylic resins and coating latexes for various applications and markets from 8 locations in Europe, Latin America and the Asia-Pacific region. It had 2004 sales of EUR 150 million and employs approximately 440 people. It will become part of Hexion's Coatings & Inks Division, which produces thermoset resins and materials for diverse markets including coatings, inks and composites. The manufacturing facilities are located in Ribecourt and Bolbec, France; Leuna, Germany; Asua, Spain; Paulinia, Brazil; Clayton, The United Kingdom; Boxhill, Australia; and, Samutsakorn, Thailand.

"This acquisition is the latest part of our ongoing effort to build a leading position in the coatings and inks markets and to bring our customers globally the best technologies and products that meet their application needs," said Jeff Nodland, president of Hexion's Coatings & Inks Division. "Along with the business come an excellent team of people and strategically located manufacturing sites that will help us better serve our customers. We believe this transaction brings value not only to Hexion, but to the industries we serve."

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.

About Hexion Specialty Chemicals, Inc.

Based in Columbus, Ohio, Hexion Specialty Chemicals combines the former Borden Chemical, Bakelite, Resolution Performance Products and Resolution Specialty Materials companies into 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 Specialty Chemicals is owned by an affiliate of Apollo Management, L.P. Additional information is available at www.hexionchem.com .