Hexion Specialty Chemicals Sells Engineering Thermoplastics Business Taroplast SpA

COLUMBUS, Ohio--Aug. 1, 2006--Hexion Specialty Chemicals announced today that is has sold its Italian-based engineering thermoplastics business, Taroplast SpA, to Giuseppe Squeri & C., SpA. The sale includes two manufacturing facilities located in Pieveottoville and Soragna, Italy. The business had 2005 sales of approximately $45 million.

"We continue to review our business portfolio to optimize our company," said Craig O. Morrison, Chairman and CEO. "This business was our only thermoplastics operation and did not fit Hexion's strategic focus on thermoset resins and materials."

Hexion acquired the Taroplast business as part of its purchase of Bakelite AG in early 2005.

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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, Inc.

Based in Columbus, Ohio, Hexion Specialty Chemicals is 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. Additional information is available at www.hexion.com.