Hexion Specialty Chemicals Completes Purchase of Ink & Adhesive Resins Business From Akzo Nobel

COLUMBUS, Ohio--June 1, 2006--Hexion Specialty Chemicals, Inc., the world's largest producer of thermoset resins, announced today that it has completed its purchase of the global ink and adhesive resins business of Akzo Nobel.

The business produces resins used to manufacture inks for commercial printing and packaging, digital inks for laser and photocopier printing, and pressure sensitive adhesives used in tape and labeling applications. Its resins also are used in synthetic rubber, pigments, flooring, roadmarkings, diapers and other products. It will become part of Hexion's Performance Products and Inks Division.

"This acquisition further strengthens and diversifies our range of products and technologies, and expands our geographic footprint to help us effectively serve our global customer base," said Division President Sarah Coffin.

The acquired business includes manufacturing facilities in Maastricht, The Netherlands; Santo Varao, Portugal; Toronto, Canada; Concordia, Argentina; Mt. Maunganui, New Zealand; Fengkai, and Suzhou, China; Gunsan, Korea; and in the U.S., Baxley, Georgia and Matteson, Illinois.

The business has annual sales of approximately EUR 166 million and employs 560 associates. Its resin technologies include hard resins, alkyd resins, polyester resins, acrylic resins, resin solutions and vehicles, tackifier dispersions, and rosin esters.

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.hexion.com.