Terra Environmental Technologies Launches New Web Site

SIOUX CITY, Iowa--Terra Industries Inc. (“Terra”) announces that Terra Environmental Technologies Inc. (“TET”), a wholly-owned Terra subsidiary, has launched a new Web site at www.tet-terra.com. The new site supports TET’s position as a North American leader in fast-growing emissions reduction markets.

The new Web site features content tailored to two distinct customer types:

Mobile customers, including original equipment manufacturers (OEMs), dealers, fleets, owner/operators and truck stops. TET has built an infrastructure with distribution and packaging partners to supply these customers with TerraCair Ultrapure® Diesel Exhaust Fluid (DEF), a liquid urea product that has been quality-certified by the American Petroleum Institute. TerraCair Ultrapure® DEF will be used in conjunction with selective catalytic reduction (SCR) technology to achieve emission reduction requirements that take effect on all diesel equipment introduced in 2010 and beyond.
Stationary customers, including power plants, large industrial applications and stationary diesel-powered engines that use various NOx reducing reagents such as anhydrous and aqueous ammonia, urea and urea liquor, in SCR and selective non catalytic reduction (SNCR) systems.

The site provides details on TET’s full range of products and services.

About TET

Terra established its environmental business in 2003 to provide products and services to customers using nitrogen products to reduce NOx emissions from various sources, including power plants and diesel engines, and in other environmental processes such as water treatment. TET was incorporated in 2007, and as a wholly owned Terra subsidiary, has access to the full range of Terra resources.

About Terra

Terra Industries Inc., with 2008 revenues of $2.9 billion, is a leading North American producer and marketer of nitrogen products.

Important Information and Where to Find It

On June 26, 2009, Terra filed with the Securities and Exchange Commission (the “SEC”) a revised preliminary proxy statement in connection with its 2009 Annual Meeting, which is available free of charge at the SEC’s Web site at www.sec.gov and Terra’s Web site at www.terraindustries.com. Terra plans to file with the SEC and mail to its stockholders a definitive proxy statement in connection with its 2009 Annual Meeting. Investors and security holders are urged to read the revised preliminary proxy statement, which is available now, and the definitive proxy statement relating to the 2009 Annual Meeting and any other relevant documents filed with the SEC when they become available, because they will contain important information. Investors and security holders may obtain a free copy of the definitive proxy statement and other documents (when available) that Terra files with the SEC at the SEC’s Web site at www.sec.gov and Terra’s Web site at www.terraindustries.com. In addition, the definitive proxy statement and other documents filed by Terra with the SEC may be obtained from Terra free of charge by directing a request to Terra Industries Inc., Attn: Investor Relations, Terra Industries Inc., 600 Fourth Street, P.O. Box 6000, Sioux City, IA 51102-6000, or by emailing your request to Terra Industries’ proxy solicitor, MacKenzie Partners, Inc., at terraproxy@mackenziepartners.com

Certain Information Concerning Participants

Terra, its directors, executive officers and certain employees specified in Annex A to Terra’s revised preliminary proxy statement for the 2009 Annual Meeting, which was filed with the SEC on June 26, 2009, are participants in the solicitation of Terra’s security holders in connection with its 2009 Annual Meeting. Security holders may obtain information regarding the names, affiliations and interests of such individuals in Terra’s Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the SEC on February 27, 2009 and amended on April 28, 2009, and its revised preliminary proxy statement for the 2009 Annual Meeting, which was filed with the SEC on June 26, 2009. To the extent holdings of Terra securities have changed since the amounts printed in the revised preliminary proxy statement for the 2009 Annual Meeting, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of such individuals can also be obtained from the revised preliminary proxy statement relating to the 2009 Annual Meeting, which is available now, and the definitive proxy statement relating to the 2009 Annual Meeting when it is filed by Terra with the SEC. These documents (when available) may be obtained free of charge from the SEC’s Web site at www.sec.gov and Terra’s Web site at www.terraindustries.com.

Forward-Looking Statements

Certain statements in this communication may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and Terra undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” and similar expressions are used to identify these forward-looking statements. These include, among others, statements relating to:

changes in financial markets,
general economic conditions within the agricultural industry,
competitive factors and price changes (principally, sales prices of nitrogen and methanol products and natural gas costs),
changes in product mix,
changes in the seasonality of demand patterns,
changes in weather conditions,
changes in environmental and other government regulation, and
changes in agricultural regulations.

Additional information as to these factors can be found in Terra’s 2008 Annual Report/10-K, in the sections entitled “Business,” “Legal Proceedings,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in the Notes to the consolidated financial statements.

Note: Terra Industries’ news announcements are also available on its Web site, www.terraindustries.com.