AT Plastics Agrees to Sell Its Peachtree City, Georgia Power Cable Insulation Business to Equistar Chemicals.

Business Editors

BRAMPTON, Ontario--(BUSINESS WIRE)--April 20, 2001

AT Plastics Inc. (AMEX:ATJ)(TSE:ATP.) announced today that it has signed a letter of intent to sell its PowerGuard(R) medium-voltage power cable materials business, including the manufacturing assets located in Peachtree City, Georgia, and Aqua-Link(R) low-voltage power cable materials business, to Equistar Chemicals, LP of Houston, Texas, subject to certain closing conditions.

The sale includes AT Plastic's formulation technology for the two proprietary product lines.

The planned transaction is expected to close by May 31, 2001. Terms of the agreement are not disclosed.

The business and the manufacturing facility being sold are part of AT Plastics' Performance Compounds business segment. The remaining portion of this segment, the Flexet(R) business which is located near Chicago, Illinois, will be incorporated into the Company's Specialty Polymers business.

"With the completion of this pending sale, we will be able to focus on our core businesses," said Gary Connaughty, President and CEO, AT Plastics. "As previously announced, we have been evaluating a number of strategic alternatives for part or all of the Performance Compounds business segment and we are satisfied that this is the best alternative and a win win situation."

Said Equistar President and COO Eugene Allspach, "The wire and cable business is a strategic focus area that offers high-value products for our customers. This new addition complements our existing product line and gives our customers a single source for their medium- and low-voltage power cable needs."

Under the terms of the letter of intent, the plant employees in Peachtree City, Georgia, will be offered employment by Equistar and continue to operate the facility. Certain research and development personnel as well as business personnel associated with the medium voltage business will also be offered employment.

Equistar Chemicals, LP is a partnership of Lyondell Chemical Company, Millennium Chemicals Inc. and Occidental Petroleum Corporation, which manufactures and markets petrochemicals and polymers. Equistar is headquartered in Houston, Texas.

AT Plastics develops and manufactures specialty plastics raw materials and fabricated products. The Company operates in specialized markets where its product development and process engineering have allowed it to develop proprietary and patented technologies to meet evolving customer requirements in niche markets. Products are sold in the United States, Canada and internationally. Web site: www.atplas.com.

The preceding discussion is based on currently available information and management expectations. Actual results may differ materially. AT Plastics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.