Arch Chemicals Issues Senior Notes and Enters into Accounts Receivable Securitization Program.

Business Editors

NORWALK, Conn.--(BUSINESS WIRE)--March 20, 2002

Arch Chemicals, Inc. (NYSE: ARJ) announced that it has issued $211 million principal amount of unsecured senior notes in a private placement to certain institutional investors. Series A notes of $149 million are due in March 2007 and Series B notes of $62 million are due in March 2009 and bear fixed interest rates of 7.94% and 8.24%, respectively. Proceeds from the issuance of these notes will be used principally to pay off the acquisition facility that the Company used to acquire Hickson International PLC in 2000.

The Company also entered into a trade accounts receivable securitization program under which it can sell, on an ongoing basis, participation interests in accounts receivable of up to $80 million through its wholly owned subsidiary, Arch Chemicals Receivables Corp.

"I am very pleased with our ability to successfully refinance our short-term obligation with long-term debt and enter into an accounts receivable securitization program. This securitization program provides the Company with an additional source of funding and is expected to lower our overall cost of borrowing," said Louis S. Massimo, Arch's Vice President and Chief Financial Officer.

Headquartered in Norwalk, CT, Arch Chemicals is a global specialty chemicals company with 3,000 employees worldwide, approximately $1 billion in annual revenue, and leadership positions in five key segments -- Microelectronic Materials, HTH Water Products, Treatment Products, Performance Products, and Other Specialty Products. The Company serves world leaders in these markets with forward-looking solutions to meet their chemical needs.

Except for historical information contained herein, the information set forth in this communication contains forward-looking statements that are based on management's beliefs, certain assumptions made by management and management's current expectations, estimates and projections about the markets and economy in which the Company and its various businesses operate. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "opines," "plans," "projects," "should," "targets," "will," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors"), which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Future factors which could cause actual results to differ materially from those discussed include but are not limited to: general economic and business and market conditions; lack of economic recovery in the second half of 2002 in the U.S.; lack of moderate growth or recession in European economies; increases in interest rates; economic conditions in Asia; strengthening of the U.S. dollar against the euro; customer acceptance of new products; efficacy of new technology; changes in U.S. laws and regulations; increased competitive and/or customer pressure; the Company's ability to maintain chemical price increases; higher-than-expected raw material costs for certain chemical product lines; increased foreign competition in the calcium hypochlorite markets; further deterioration in the semiconductor industry and lack of recovery in the second half of 2002; unfavorable court, arbitration or jury decisions; the supply/demand balance for the Company's products, including the impact of excess industry capacity; failure to achieve targeted cost-reduction programs; unsuccessful entry into new markets for electronic chemicals; capital expenditures in excess of those scheduled; environmental costs in excess of those projected; the occurrence of unexpected manufacturing interruptions/outages at customer or Company plants; unfavorable weather conditions for swimming pool use; gains or losses on derivative instruments; and the inability of the Company to sell the Hickson organics Castleford, England, operations at its desired price.