Henkel Group Purchases Alba Adesivos From Hexion Specialty Chemicals

COLUMBUS, Ohio--March 31, 2006--The Henkel Group and Hexion Specialty Chemicals announced today that Henkel has purchased Alba Adesivos, a consumer adhesives company based in Brazil, from Hexion Specialty Chemicals. Terms of the transaction were not disclosed.

Alba Adesivos is a leading Latin American producer of branded consumer and professional grade adhesives based in Boituva, Brazil. The company generated 2005 sales of $38 million and has approximately 140 employees. Its primary products include polyvinyl acetate adhesives, silicone sealants, contact cements and epoxy putty adhesives. Its branded products are sold to consumers and contractors through various distribution and retail outlets.

"Hexion's focus is on serving industrial markets and the Alba consumer business is not a strategic fit for us going forward. We are pleased for the business and its people that they will become part of the Henkel organization, a company focused on branded consumer products," said Hexion's Chairman & CEO Craig O. Morrison.

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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

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 hexion.com.