Flint Hills Resources Purchases Performance Chemicals Unit.

Energy Editors/Business Editors

WICHITA, Kan.--(BUSINESS WIRE)--May 28, 2004

Subsidiaries of Flint Hills Resources, LLC, an independent refining and chemicals company based here, today finalized the acquisition of performance chemicals business assets from BP. Terms were not disclosed.

The purchase includes a production facility in Joliet, Ill., as well as a long-term agreement for production from a European plant that BP will continue operating. In addition, Flint Hills Resources also acquired research and marketing capabilities associated with the performance chemicals business.

"We are eager to integrate these assets with our core business," said Dave Robertson, president and chief executive officer of Flint Hills Resources. "The talented workforce and these competitive assets will position us to bring superior value to customers worldwide."

The Joliet plant produces purified isophthalic acid, used as an additive in polyester resin products and in coatings for the packaging, appliance and automotive industries; maleic anhydride, used in unsaturated polyester resins, agricultural chemicals, and automotive and consumer products; and trimellitic anhydride, used in the automotive, construction, appliance and coatings sectors. The European plant produces PIA.

Tim Nicol, previously with Flint Hills Resources in Corpus Christi, Texas, will be the vice president of manufacturing. Peter Brown, previously regional marketing manager for Flint Hills Resources in the Chicago area, will be director of global sales and marketing for the intermediates chemical business.

Former BP employees have new roles with Flint Hills Resources: Jim Neumann, projects and facilities manager; Paul Jacobson, optimization manager; and John D'Andrea, reliability manager. Deborah Preschler, environmental, health and safety manager, and Paul Houslet, production manager, formerly with Flint Hills Resources' Minnesota refinery, also join the leadership team.

The Joliet plant complements Flint Hills Resources' other chemicals production facility in Corpus Christi. This facility is located in the 290,000-barrel-per-day Corpus Christi refining complex and produces about 4 billion pounds of commodity chemicals annually, including pseudocumene, as well as other chemicals such as orthoxylene, metaxylene, paraxylene, benzene, cumene and toluene.

Flint Hills Resources also operates a refinery in Minnesota, near the Twin Cities, that refines about 270,000 barrels-per-day, and one near Fairbanks, Alaska, which can refine up to 220,000 barrels-per-day. In July 2003, the company invested in Excel Paralubes in Lake Charles, La., expanding its marketing capabilities into a new petroleum product line. Excel produces about 21,000 barrels-per-day of Group II base oil, used to make motor oil and other lubricants.

More information about the company is available at www.fhr.com.