Reichhold Announces List & Off-List Price Increases on Polyester Powder Coating Resins; Effective June 15

RESEARCH TRIANGLE PARK, N.C.--May 24, 2006--Reichhold, Inc. announced price increases today of $0.04 - $0.08 per pound on all FINE-CLAD(R) polyester powder coating resins sold in North America. These increases are effective for all orders shipped on or after June 15 for both list-priced and off-list priced products.

"We have found it necessary to increase our selling prices on these specific products due to recent escalations in raw materials and increased transportation costs," said Reichhold Specialty Resins Business Manager Bob Gilliam.

"We appreciate the understanding of our customers as we strive to provide technically superior products within a volatile raw material environment," Gilliam said. "We continue to invest in our manufacturing capabilities and new product development to meet customer needs both today and into the future," he concluded.

Reichhold customers will be contacted by their sales representatives regarding the specific increases applied to individual products.

About Reichhold

Founded in 1927, Reichhold will celebrate 80 years in business in 2007. With its world headquarters and technology center in Research Triangle Park, North Carolina, USA, Reichhold is the world's largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold has manufacturing operations throughout North America, Latin America, the Middle East and Europe.