LSB Industries, Inc. Reports Record Results for the 2007 Second Quarter.

OKLAHOMA CITY -- LSB Industries, Inc. (AMEX:LXU), today reported results for the second quarter ended June 30, 2007.

Second Quarter 2007 Compared to Second Quarter 2006:

* Net sales increased 18% to $156.8 million from $132.4 million;

* Operating income rose 75% to $15.2 million from $8.7 million;

* Net income rose 111% to $13.2 million from $6.3 million;

* After deducting preferred stock dividend requirements of $.2 million, net income applicable to common stock was $13.0 million, compared to $5.7 million;

* Diluted income per common share rose to $.58 per share from $.32 per share.

Six Months 2007 Compared to Six Months 2006:

* Net sales increased 25% to $304.1 million from $244.2 million;

* Operating income rose 99% to $28.7 million from $14.4 million;

* Net income rose 160% to $24.0 million from $9.2 million;

* After deducting preferred stock dividend requirements, net income applicable to common stock was $18.6 million, compared to $8.1 million;

* Diluted income per common share rose to $.87 per share from $.46 per share.

Business Overview

Jack Golsen, LSB's Chairman & CEO stated, "The current second quarter produced favorable results for sales and even stronger gains in profits. At the same time, we continued to reduce our debt to equity ratio. Our Climate Control business performed extremely well, with a 44% increase in sales, highlighted by a favorable mix as we increased our market position in certain higher margin products. While Chemical sales were only up modestly due in part to excessive rainfall in some of our markets, operating profits rose nearly 65% due to strong margins in the agricultural sector."

Conference Call

LSB's management will host a conference call covering the second quarter results on Wednesday, August 8, 2007 at 11:00 am EDT/10:00 am CDT to discuss these results and recent corporate developments. Participating in the call will be CEO, Jack E. Golsen; President and COO, Barry H. Golsen; and Executive Vice President and CFO, Tony M. Shelby. Interested parties may participate in the call by dialing 706-679-3079. Please call in ten minutes before the conference is scheduled to begin and ask for the LSB conference call.

To listen to a webcast of the call, please go to the Company's website at www.lsb-okc.com at least 15 minutes before the conference call to download and install any necessary audio software. If you are unable to listen live, the conference call webcast will be archived on the Company's website for 90 days. We suggest listeners use Microsoft Explorer as their web browser.

LSB Industries, Inc.

LSB is a manufacturing, marketing and engineering company. LSB's principal business activities consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils, large custom air handlers, the manufacture and sale of chemical products for the mining, agricultural and industrial markets, and the provision of specialized engineering services and other activities

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                      LSB Industries, Inc.
             Notes to Unaudited Financial Highlights
             Six Months Ended June 30, 2007 and 2006

Note 1:    Net income applicable to common stock is computed by
           adjusting net income by the amount of preferred stock
           dividend requirements and stock dividends. Basic income per
           common share is based upon net income applicable to common
           stock and the weighted average number of common shares
           outstanding during each period. Diluted income per share is
           based on net income applicable to common stock plus
           preferred stock dividend requirements on preferred stock
           assumed to be converted, if dilutive, and interest expense
           including amortization of debt issuance costs, net of
           income taxes, on convertible debt assumed to be converted,
           if dilutive, and the weighted average number of common
           shares and dilutive common equivalent shares outstanding,
           and the assumed conversion of dilutive convertible
           securities outstanding.

Note 2:    In September 2006, the Financial Accounting Standards Board
           ("FASB") issued FASB Staff Position No. AUG AIR-1 ("FSP"),
           accounting for planned major maintenance activities
           ("Turnarounds"). Effective January 1, 2007, we changed from
           the accrue-in-advance method which we were using to the
           preferred direct expensing method in accordance with the
           FSP. As a result of the change, net income for the six
           months ended June 30, 2006 as presented in the Unaudited
           Financial Highlights has been increased $35,000 and the net
           income for the three months ended June 30, 2006 has been
           decreased $387,000, as a result of the retrospective
           application of the FSP.

Note 3:    Information about the Company's operations in different
           industry segments for the six and three months ended
           June 30, 2007 and 2006 is detailed on the following page.
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Notes:

(a) Gross profit by industry segment represents net sales less cost of sales. Gross profit classified as "Other" relates to industrial machinery and components.

(b) Operating income by industry segment represents gross profit by industry segment less selling, general and administrative expenses ("SG&A") incurred by each industry segment plus other income and other expense earned/incurred by each industry segment before general corporate expenses and other business operations, net. General corporate expenses and other business operations, net consist of unallocated portions of gross profit, SG&A, other income and other expense.

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                        LSB INDUSTRIES, INC.
           Notes To Condensed Consolidated Balance Sheets

(a)     Information at December 31, 2006, is audited and is from the
        Company's Form 10K/A Amendment No. 1, filed July 18, 2007.

(b)     During the six months ended June 30, 2007, $4 million of the
        Company's 7% Convertible Senior Subordinated Debentures due
        2011, was converted into 564,790 shares of common stock.

(c)     Also during the six months ended June 30, 2007, as a result of
        a tender offer completed on March 13, 2007, the Company issued
        2,262,965 shares of its common stock for 305,807 shares of
        Series 2 Preferred that were tendered. Also as a result of
        this tender offer, an aggregate of approximately $7.3 million
        in accrued and unpaid dividends were waived. At June 30, 2007,
        the amount of unpaid dividends in arrears on our Series 2
        Preferred totaled approximately $4.9 million.

(d)     On July 11, 2007, our Board of Directors approved the
        redemption of all of the Company's outstanding Series 2
        Preferred. We mailed a notice of redemption to all holders of
        record of Series 2 Preferred on July 12, 2007. The redemption
        date is scheduled for August 27, 2007, and each share of
        Series 2 Preferred that is redeemed shall receive a redemption
        price of $50.00 plus $26.25 per share in accrued and unpaid
        dividends pro-rata to the date of redemption. As of July 12,
        2007, 193,295 shares of Series 2 Preferred were outstanding
        (net of treasury stock). If none of the outstanding shares of
        the Series 2 Preferred are converted (as discussed below), the
        Company would pay the holders of the Series 2 Preferred a
        total of approximately $14.7 million.

        The holders of shares of Series 2 Preferred have the right to
        convert each share into 4.329 shares of the Company's common
        stock, which right to convert terminates 10 days prior to the
        redemption date. If a holder converts its shares of Series 2
        Preferred, the holder would not be entitled to any accrued and
        unpaid dividends as to the shares of the Series 2 Preferred
        converted. If all of the outstanding shares of Series 2
        Preferred are converted, 836,774 shares of the Company's
        common stock would be issuable.