LAROCHE INDUSTRIES INC. FORMS NEW COMPANY AND ACQUIRES U.S. ROTORS, INC.

ATLANTA--(BUSINESS WIRE)--June 2, 1995--Effective as of May 12, 1995, LaRoche Air Systems Inc. (LASI), a newly formed subsidiary of LaRoche Industries Inc., acquired the core assets of U.S. Rotors, Inc., Eldersburg, MD, a manufacturer of desiccant and enthalpy wheels for the industrial de-humidification and energy recovery markets.

With the formation of LASI, LaRoche takes a major step toward mass production and marketing of desiccant wheel products. From late 1987 to April 1995, LaRoche, under a grant from the Gas Research Institute, developed a high perfomance desiccant wheel suitable for use in a gas-fired desiccant cooling project. With the purchase of the assets of U.S. Rotors, LaRoche expands to participate in three main makets: the industrial de-humidificaton wheel market, the desiccant air conditioning market and the heat recovery wheel market.

LASI is an original equipment manufacturer of five products: desiccant cooling wheels for large-scale commercial and residentail consumption; small diameter enthalpy wheels also for large-scale commercial and residential consumption; large diameter enthalpy wheels for commercial and industrial consumption; industrial desiccant wheels for traditional desiccant dehumidification applications; and Enthalpex(SM) exchange cores for large-volume residential consumption.

"The acquisition was an excellent opportunity because it makes LaRoche a viable player in the desiccant wheel marketplace," Commercial Director Scott L. Janke commented. The former U.S. Rotors was established in 1992 by Spencer K. Goland, and he joins LaRoche as Business Manager. LASI has sales and manufacturing offices in both Baton Rouge, LA, and Eldersburg.

Founded in 1986, LaRoche Industries Inc. is a major diversified producer and distributor of chemicals, including electrochemical products, nitrogen products and alumina chemicals. It owns and operates five major plants located in Gramercy, LA; Baton Rouge, LA; Cherokee, AL; Crystal City, MO; and Geneva, UT. The company manufactures ammonia in Fortier, LA, through a joint venture managed by Cytec Industries Inc.

LaRoche manufactures and/or distributes nitrogen products including anhydrous and aqua ammonia for industrial manufacturing, ammonium nitrate, nitric acid and diammonium phosphate for agricultural markets; and ammonium nitrate for mine blasting. The company's electrochemical prducts are chlorine, caustic soda and fluorocarbons, with markets including plastics, water treatment, pulp and paper air conditioning and refridgeration. In addition, the company also produces specialty alumina chemicals (activated and Versal(TM)) used as adsorbents and catalysts, and industrial alumina chemicals (tabular and calcined) used in refractories, ceramics, abrasives and investment castings.

LaRoche Industries Inc. is located at 1100 Johnson Ferry Road N.E., Atlanta, GA, 30342, [phone].

CONTACT: LaRoche Industries Inc.

Angela D. McLachlan, 404/851-0446

Sarah R. Duncan, 404/851-0445