AIRGAS, INC. ACQUIRES NINE DISTRIBUTORS, ANNOUNCES DIVESTITURE OF CALCIUM CARBIDE AND CARBON PRODUCTS MANUFACTURING OPERATIONS.

RADNOR, Pennsylvania--(BUSINESS WIRE)--November 5, 1998--Airgas, Inc. (NYSE: ARG) announced today that it has completed the acquisitions of nine distributor businesses with combined sales of approximately $17 million.

Six of the businesses will be merged into the Company's Distribution segment. Valley Welding Supply Co., Inc. is a distributor of industrial gases and related equipment, based in McAllen, Texas with branch outlets in Harlingen and Rio Grande City, Texas. Robinson Companies, Inc. is a distributor of industrial gases and related equipment, located in Sarasota, Florida. Hughes Fire Protection is located in Chico, California. Nelson Equipment is a rental welder business located in San Diego, California. Airgas also acquired the customer accounts of A-Ox Welding Supply Company, Inc.'s Sioux City, Iowa branch operation and the beverage carbon dioxide business of Red Ball Oxygen Co., based in Shreveport, Louisiana.

The other three acquisitions will merge with the Company's Manufacturing operations. Carbonic Products, Inc. is a manufacturer and distributor of dry ice from plants and distribution facilities located in Santa Fe Springs and Carson, California. Carbonic Products also distributes bulk liquid carbon dioxide. Pacific Dry Ice is a dry ice distributor with outlets in San Diego and Sun Valley, California and Reno, Nevada. American Carbonic Corporation is a dry ice distributor based in Houston, Texas.

Since April 1, 1998, Airgas has completed the acquisition of fifteen distributors with combined annual sales of $51 million.

In a separate transaction, Airgas announced that it has signed a definitive agreement to sell its calcium carbide and carbon products manufacturing operations to Elkem Metals Company L.P., a subsidiary of Elkem ASA. As part of the agreement, Elkem will enter into a long-term contract to supply Airgas' calcium carbide requirements and Airgas and Elkem will discontinue their Elkem-American Carbide Company joint venture that currently markets calcium carbide throughout the United States. The manufacturing facilities that are operated by the Company's subsidiary, American Carbide and Carbon Corporation, are located in Pryor, Oklahoma and Keokuk, Iowa and generate annual revenues of approximately $30 million. The transaction is subject to regulatory approvals.

Peter McCausland, Airgas' Chairman and Chief Executive Officer commented: "This action, coupled with the two divestitures announced in July, reaffirms our continued focus on our core U.S. distribution business. The Airgas Repositioning for Growth initiative includes redeployment of cash from non-strategic businesses and continued growth in the U.S. distribution market. We look forward to further progress through the balance of the year."

Airgas is the largest distributor of industrial, medical and specialty gases and related equipment in the United States. The Airgas distributor network includes more than 700 locations in 44 states. Airgas can be visited via the Internet at http://www.airgas.com.