Hexion Specialty Chemicals, Inc. Extends Tender Offers For 9% Notes Due 2014 and Floating Rate Notes Due 2010 Issued by Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC and Changes the Price Determination Date for the 9% Notes.

COLUMBUS, Ohio -- Hexion Specialty Chemicals, Inc. ("Hexion" or the "Company") announced today that it has extended the Expiration Date of its previously announced cash tender offers, for any and all of the outstanding 9% Second-Priority Senior Secured Notes due 2014 (the "9% Notes") and the Second-Priority Senior Secured Floating Rate Notes due 2010 issued by Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC (the "Floating Rate Notes" and together with the 9% Notes the "Notes"), to 5:00 p.m., New York City time, on November 13, 2006, unless further extended. In connection with the extension of the tender offers Hexion is changing the Price Determination Date for the 9% Notes which shall now be October 30, 2006.

As of 5:00 p.m. New York City time, on October 24, 2006, tenders and consents had been received with respect to 100% of the outstanding principal amounts of the Notes. The tender offers and consent solicitations are subject to the terms and conditions set forth in Hexion's Offer to Purchase and Consent Solicitation Statement dated October 12, 2006 and the related Consent and Letter of Transmittal (the "Offer Documents").

Hexion has retained Credit Suisse Securities (USA) LLC to act as Dealer Manager in connection with the tender offer and consent solicitation. Questions about the tender offer and consent solicitation may be directed to Credit Suisse Securities (USA) LLC at [phone] (toll free) or [phone] (collect). Copies of the Offer Documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offer and consent solicitation, at [phone] (toll free) or [phone] (collect).

The tender offer and consent solicitation is being made solely by means of the Offer Documents. Under no circumstances shall this press release constitute an offer to purchase or the solicitation of an offer to sell the Notes or any other securities of Hexion. It also is not a solicitation of consents to the proposed amendments to the indentures and the collateral agreements. No recommendation is made as to whether holders of the Notes should tender their notes or give their consents.

Forward Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "will" or "intend" and similar expressions. The forward-looking statements contained herein reflect our current views with respect to future events and are based on our currently available financial, economic and competitive data and on current business plans. Actual results could vary materially depending on risks and uncertainties that may affect the Company's operations, markets, services, prices and other factors as discussed in our SEC filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: economic factors such as an interruption in the supply of or increased pricing of raw materials due to natural disasters, competitive factors such as pricing actions by our competitors that could affect our operating margins, and regulatory factors such as changes in governmental regulations involving our products that lead to environmental and legal matters as described in our SEC filings. Additional factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in our Form 10-K for the period ended December 31, 2005 under the caption "Forward-Looking and Cautionary Statements" under Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as otherwise required by law.

About the Company

Based in Columbus, Ohio, Hexion Specialty Chemicals combines the former Borden Chemical, Bakelite, Resolution Performance Products and Resolution Specialty Materials companies into the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion Specialty Chemicals is owned by an affiliate of Apollo Management, L.P. Additional information is available at www.hexion.com