LSB Industries’ Subsidiary Signs Long-Term Supply Agreement for Diesel Exhaust Fluid (DEF) with Yara North America, Inc.

OKLAHOMA CITY--LSB Industries, Inc. , announced today that its Cherokee Nitrogen Company subsidiary (Cherokee Nitrogen) has signed a long-term agreement with Yara North America, Inc. (Yara) to supply Yara with diesel exhaust fluid (DEF) which will be produced at Cherokee Nitrogen’s chemical manufacturing facility in Cherokee, Alabama. DEF is an exhaust system additive and scrubbing agent used to reduce nitrogen oxide (NOx) emissions from diesel engines. DEF breaks the NOx down into harmless components of water vapor and nitrogen gas. The U.S. Environmental Protection Agency has enacted emissions standards which will become effective in 2010 that require the reduction of NOx emissions. Our Earthpure DEF™ meets the stringent quality requirements of the American Petroleum Institute and significantly reduces NOx emissions. It is anticipated that our Earthpure DEF™ will be available in January 2010 and will be marketed under the Yara brand name Air1.

Jack E. Golsen, LSB’s Board Chairman and CEO stated, “Cherokee Nitrogen has chosen to team with Yara, combining its manufacturing expertise and U.S. based production with Yara’s global experience in the DEF markets. We are pleased to announce our entry into this new value-added business which expands our presence in the industrial sector with this high purity urea solution. Yara’s experience in the DEF market in Europe, Asia and Australia should prove invaluable in establishing and building the market for Cherokee Nitrogen’s product in the U.S. Earthpure DEF™ is a natural extension of our other environmentally beneficial products. Our Chemical Business also produces NOx abatement chemicals for power plants, and our Climate Control Business produces a wide range of energy efficient and environmentally friendly heating and cooling products, including geothermal heat pumps.”

About LSB Industries, Inc (LSB):

LSB is a manufacturing, marketing and engineering company. LSB’s principal business activities consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils, large custom air handlers, the manufacture and sale of chemical products for the mining, agricultural and industrial markets, and the provision of specialized engineering services and other activities.

About Yara North America (Yara):

Yara North America is a unit of Yara International ASA, a global firm specializing in agricultural products and environmental protection agents. As the world’s largest supplier of mineral fertilizers, Yara helps provide food and renewable energy for a growing world population. Yara’s products also help cleanse the air and eliminate toxic waste. The Oslo-based company has more than 8,000 employees and annual revenues of nearly NOK 90 billion (Norwegian Krone) (15 billion USD) with operations in more than 50 countries.

This press release contains certain “forward-looking statements” which are based largely on the LSB’s expectations and are subject to various business risks and uncertainties, certain of which are beyond LSB’s control. Forward-looking statements include, but are not limited to: we believe that Earthpure DEF™ meets stringent quality requirements of the American Petroleum Institute and reduces NOx emissions; we believe that our Earthpure DEF™ will be available in January 2010 and marketed under the Yara brand name Air1; that DEF represents a new value-added business which expands our presence in the industrial sector; that Yara’s marketing experience will prove invaluable. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. While LSB believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; market conditions; LSB’s capital needs; acceptance in the market of this new technology; and future laws, rules and regulations relating to environmental issues and emissions; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements” contained in LSB’s 2008 Form 10-K and LSB’s Form 10-Qs for quarterly periods ending March 31, 2009 and June 30, 2009. LSB makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.