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LSB Industries, Inc. Announces Credit Line Agreement for Automotive Business

12 May 1999

LSB Industries, Inc. Announces Credit Line Agreement for Automotive Business

    OKLAHOMA CITY, May 11 -- LSB Industries, Inc.
("LSB") announced today that its Automotive Business, L&S Automotive Products
Co.("L&S"), has signed an agreement with a lender for an $18.5 million line of
credit to finance its working capital requirements.
    Jack E. Golsen, Board Chairman, stated that "obtaining this separate line
of credit has been one of the prerequisites of our Board of Directors prior to
approval of the spin-off of LSB's Automotive Business to shareholders.  We
will proceed with the remaining conditions required to complete the formal
plan for presentation to our Board on June 3."
    If the contemplated spin-off is completed L&S, with sales of $40 million,
will carry with it approximately $40 million of assets and approximately
$30 million in debt including a note payable to LSB of approximately
$6 million.
    In anticipation of the spin-off, L&S has become a wholly-owned subsidiary
of LSA Technologies, Inc. ("LSA").  This will position LSA to develop
leadership in its own market niche.
    Golsen also stated that "the contemplated spin-off is part of LSB's
strategic plan to divest of certain non-core assets and focus on the Chemical
and Climate Control Businesses where it has market leadership positions".
    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.