Chemtura Announces Intent to Acquire Kaufman Holdings.

Chemtura to Gain Strong Positions in High-Growth Lubricants for CFC-Free Refrigeration Compressors and High-Purity Synthetic Lubricants

MIDDLEBURY, Conn. & FORDS, N.J. -- Chemtura Corporation (NYSE: CEM) and Kaufman Holdings Corporation announced today that they have signed a letter of intent for Chemtura to acquire Kaufman's stock in a cash transaction expected to close in the first quarter of 2007. Terms of the transaction, which is subject to final negotiations and regulatory approval, were not disclosed.

"Through this transaction, Chemtura would gain strong positions in two exciting new markets: high-growth lubricants for CFC-free refrigeration compressors and high-purity synthetic lubricants," said Chemtura Chairman and CEO Robert L. Wood.

"Chemtura has the global scale and specialty chemical expertise needed to maximize the potential of these dynamic businesses," said Kaufman President and CEO Alex Kaufman.

Kaufman is a privately-held corporation with approximately 300 employees and 2006 revenues in excess of $200 million. It has manufacturing facilities in Fords and East Hanover, N.J. and Oakville, Canada.

Kaufman includes two operating companies, 1) Hatco Corporation, a worldwide leading producer of polyol esters used for technically demanding synthetic lubricant applications, including aviation turbine oils and lubricants for CFC-free refrigeration compressors; and 2) Anderol, Inc., a worldwide leader in high-purity, synthetic lubricants used in demanding aviation and industrial applications such as compressors, bearings, gears and food-grade machinery.

Kaufman Holdings Corporation

Kaufman Holdings Corporation is a leading producer of specialty chemicals for use in the automotive, aviation, refrigeration, industrial, cosmetic and personal care markets. It serves customers and markets through a global network of integrated sales, production, research, technical service and distribution facilities.

Chemtura Corporation

Chemtura Corporation, with pro forma 2005 sales of $3.9 billion, is a global manufacturer and marketer of specialty chemicals, crop protection and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.

Forward-Looking Statement 

Certain statements made in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, general economic conditions; significant international operations and interests; the outcome and timing of antitrust investigations and related civil lawsuits to which Chemtura is subject; the ability to obtain increases in selling prices; the ability to retain sales volumes in the event of increasing selling prices; the ability to absorb fixed cost overhead in the event of lower volumes; pension and other post-retirement benefit plan assumptions; energy and raw material prices, availability and quality; production capacity; changes in interest rates and foreign currency exchange rates; changes in technology, market demand and customer requirements; the enactment of more stringent environmental laws and regulations; the ability to realize expected cost savings under Chemtura's cost-reduction initiatives; the ability to successfully execute our portfolio divesture plan; the ability to reduce Chemtura's debt levels; the ability to successfully integrate the Crompton and Great Lakes businesses, operations and information systems and achieve anticipated benefits from the Merger, including costs savings and synergies; and other risks and uncertainties detailed in filings with the Securities and Exchange Commission by Chemtura or its predecessor companies. These statements are based on Chemtura's estimates and assumptions and on currently available information. The forward-looking statements include information concerning our possible or assumed future results of operations. Chemtura's actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date this release was issued and such information will not necessarily be updated by Chemtura.