LSB Industries, Inc. Reports Results for the 2006 Fourth Quarter and Year.

Net Sales Increase of 24% Produces 84% Gain in Operating Income For The Year

OKLAHOMA CITY -- LSB Industries, Inc. (AMEX:LXU) today reported results for the fourth quarter and year ended December 31, 2006.

Fourth Quarter 2006 Compared to Fourth Quarter 2005:

* Net sales increased 30% to $123.7 million from $95.5 million;

* Operating income rose 144% to $6.6 million from $2.7 million;

* Net income was $3.4 million compared to a loss of $45,000;

* After deducting preferred stock dividend requirements, net income applicable to common stock was $2.4 million, compared to a net loss in 2005 of $.7 million;

* Diluted earnings per share rose to $.14 per share from a loss per share of $.05.

2006 Compared to 2005:

* Net sales increased 24% to $492.0 million from $397.1 million;

* Operating income was $27.6 million, up 84% compared to $15.0 million;

* Net income of $15.9 million was 212% ahead of last year's $5.1 million;

* After preferred stock dividend requirements, net income applicable to common stock was $13.3 million, up 375% from $2.8 million;

* Diluted earnings per share were $.78, or 311% ahead of last year's $.19.

Business Overview

LSB's CEO, Jack E. Golsen, noted that fourth quarter results continued the trend of the first three quarters, making 2006 a record year for LSB for both revenues and income from operations. "Our Climate Control and Chemical Businesses both achieved significant gains in revenue and operating income. The Climate Control Business had especially robust sales growth led by geothermal and water source heat pumps. Our Chemical Business also turned in improved results, spearheaded by industrial sales, despite the serious drought during the 2006 growing season that affected agricultural product sales."

Conference Call

LSB will host a conference call covering the fourth quarter and year 2006 results on Wednesday, March 21, 2007 at 11:00 am EDT/ 10:00 am CDT. You are invited to listen to the call by dialing: 1-706-679-3079. Additionally, there will be a webcast posted on the Company's website at www.lsb-okc.com.

LSB Industries, Inc.

We are a diversified holding company and our principal business activities consist of the:

* Climate Control Business engaged in the manufacturing and selling of a broad range of air conditioning and heating products consisting of water source heat pumps including geothermal heat pumps, hydronic fan coils, large custom air handlers and other products used in commercial and residential new building construction, renovation of existing buildings and replacement of existing systems.

* Chemical Business engaged in the manufacturing and selling of chemical products produced from plants in Texas, Arkansas and Alabama for the industrial, mining and agricultural markets.

                        LSB Industries, Inc.
                        Financial Highlights
        Years and Three Months Ended December 31, 2006 and 2005
                            (unaudited)
[TABLE OMITTED]
                        LSB Industries, Inc.
                Notes to Unaudited Financial Highlights
        Years and Three Months Ended December 31, 2006 and 2005
                            (unaudited)

Note 1: Net income applicable to common stock is computed by adjusting net income by the amount of preferred stock dividend requirements.

Note 2: During each of the four quarters of 2006, our Board of Directors declared and we paid nominal dividends on certain outstanding series of our preferred stock as follows: $.10 per share on our outstanding Series 2 Preferred, $.37 per share on our outstanding Series B Preferred, and $.31 per share on our outstanding Non-Cumulative Redeemable Preferred. These dividends were not for the full amount of the required quarterly dividends pursuant to the terms of all of our outstanding series of preferred stock.

Note 3: Basic net income (loss) per common share is based upon net income (loss) applicable to common stock and the weighted average number of common shares outstanding during each period. Diluted income (loss) per share, if applicable, is based on net income (loss) 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 4: Information about the Company's operations in different industry segments for the year and three months ended December 31, 2006 and 2005 is detailed on the following page.

                        LSB INDUSTRIES, INC.
                Notes to Unaudited Financial Highlights
        Years and Three Months Ended December 31, 2006 and 2005
                            (unaudited)
[TABLE OMITTED]

Notes:

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

Operating income by industry segment represents gross profit by industry segment less selling, general and administrative expense ("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.