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LSB Industries, Inc. Announces Update On Spin-Off

9 September 1998

LSB Industries, Inc. Announces Update On Spin-Off

    OKLAHOMA CITY, Sept. 9 -- LSB Industries, Inc.
("LSB") announced today that it is making progress on its previously announced
spin-off of its Automotive Products Business to the common shareholders.  LSB
has retained the firm of Houlihan Lockey to provide certain opinions in
connection with the spin-off.
    The Company is working diligently to complete the transaction and is
attempting to complete it in the fourth quarter of 1998.  The spin-off is
subject to receipt of opinions from Houlihan Lockey, a determination that the
spin-off is not taxable to shareholders, completion of certain filings with
the Securities and Exchange Commission, finalization of a working capital line
of credit for the Automotive Business, and approved by LSB's Board of
Directors.
    LSB is a manufacturing, marketing, and engineering company with activities
on a worldwide basis.  LSB's principal business activities consist of the
manufacture and sale of chemical products for the mining, agricultural and
industrial markets, the manufacture and sale of commercial and residential
climate control products, the provision of specialized engineering services,
and other activities.  LSB's common stock and Series 2 Preferred stock are
listed for trading on the New York Stock Exchange.
    This release contains certain forward-looking statements that are subject
to certain risks and uncertainties.  The forward-looking statements contained
herein include the attempt to complete the spin-off by the end of 1998.  While
LSB believes the expectations reflected in this press release are reasonable,
it can give no assurance such expectations will prove to be correct.  There
are a variety of factors which could cause the forward-looking statements to
differ materially from those described herein, including, without limitation,
inability to meet the conditions noted in the second paragraph of this release
by the end of 1998.