Chemtura Completes Sale of Industrial Water Additives Business.

MIDDLEBURY, Conn. -- Chemtura Corporation (NYSE: CEM) completed the sale of its Industrial Water Additives business to an affiliate of Close Brothers Private Equity LLP (CBPE), a U.K. firm. In connection with this transaction the company received $85 million in cash. Excluded from the sale is the LiquiBrom(R) product line. Proceeds from the sale will be used primarily for debt reduction. E[acute accent]"We are very happy to announce the completion of this transaction, which we believe will benefit all parties. Industrial Water Additives is a strong enterprise, which we expect will do well with Close Brothers, but it doesn't fit our strategy of concentrating on core businesses that will produce the greatest results for us," said Chemtura Chairman and CEO Robert L. Wood. E[acute accent]No facilities were included in the transaction. Chemtura will continue to manufacture products in its Adrian, Mich., and Trafford Park, U.K. facilities and sell to the purchaser via supply agreements. Industrial Water Additives' approximately 40 non-manufacturing employees will become employees of BWA Water Additives, a CBPE affiliate. BWA will act as distributor for the LiquiBrom product line. There will be no gain or loss booked on the transaction, which is expected to be dilutive to earnings by $0.01 in 2006 and $0.02 in 2007. E[acute accent]Industrial Water Additives had pro forma 2005 revenues of approximately $80 million, excluding the LiquiBrom product line. Industrial Water Additives is a major producer of organic, polymer-based antiscalants and corrosion inhibitors and bromine-based biocides. Its Belclene(R), Belcor(R), Belgard(R), Belite(R), Bellacide(R), Bellasol(R), Belsperse(R), BromiCide(R), Flocon(R) and LiquiBrom products help to control scale, corrosion, foam and problem organisms in industrial cooling, industrial and municipal wastewater treatment, pulp and paper processing, food processing, and desalination processes. E[acute accent]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.

E[acute accent]Forward-Looking Statement 

E[acute accent]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 amount of any additional earn-out payments from General Electric Company from the sale of the OrganoSilicones business; 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 cost 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, and 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.