Hexion Specialty Chemicals' Announces Delay of Its Initial Public Offering

COLUMBUS, Ohio--June 21, 2006--Hexion Specialty Chemicals, Inc. ("Hexion"), today announced that it is suspending its initial public offering (IPO) of common stock due to adverse market conditions.

"Our decision to postpone the IPO is based on the recent volatility within the overall equities markets and the specialty chemical sector," said Craig O. Morrison, Chairman, President and CEO. "Hexion will continue to focus on meeting the diverse thermoset resin needs of our customers worldwide. We remain committed to growing our position as the global leader in thermoset resins, achieving our targeted synergies and continuing to increase margins through operational excellence."

On June 19, 2006, Hexion Specialty Chemicals filed an amendment to its registration statement on Form S-1 for an initial public offering of equity securities, which is not yet effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the management of Hexion Specialty Chemicals, Inc. (which may be referred to as "Hexion," "we," "us," "our" or the "Company") may from time to time make oral forward-looking statements. Forward looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "will" or "intend" and similar expressions. The forward-looking statements contained herein reflect our current views with respect to future events and are based on our currently available financial, economic and competitive data and on current 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 Item 1A--Risk Factors of the Company's Form 10-Q, filed with the Securities Exchange Commission on May 15, 2006. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: economic factors such as an interruption in the supply of or increased pricing of raw materials due to natural disasters, competitive factors such as pricing actions by our competitors that could affect our operating margins, and regulatory factors such as changes in governmental regulations involving our products that lead to environmental and legal matters as described in Item 1. Legal Proceedings of the Company's Form 10-Q filed with the Securities Exchange Commission on May 15, 2006.

About Hexion Specialty Chemicals

Based in Columbus, Ohio, Hexion Specialty Chemicals 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.