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Huntsman Releases 2009 Third Quarter Results

STRONG ADJUSTED EBITDA RESULTS PRIMARILY FROM IMPROVED CONTRIBUTION MARGINS AND REDUCED CASH FIXED COSTS

THE WOODLANDS, Texas, Nov. 4/PRNewswire-FirstCall/ -- (NYSE: HUN)

Third Quarter 2009 Highlights

    --  Revenues for the third quarter of 2009 were $2,108 million, an increase
        of 13% compared to $1,866 million for the second quarter of 2009 and a
        decrease of 23% compared to $2,731 million for the third quarter of
        2008.
    --  Adjusted EBITDA for the third quarter of 2009 was $200 million compared
        to $96 million for the second quarter of 2009 and $194 million for the
        third quarter of 2008.
    --  Net loss attributable to Huntsman Corporation for the third quarter of
        2009 was $68 million or $0.29 loss per diluted share compared to net
        income attributable to Huntsman Corporation of $406 million or $1.51 per
        diluted share for the second quarter of 2009 and net loss attributable
        to Huntsman Corporation of $20 million or $0.09 loss per diluted share
        for the third quarter of 2008.  Adjusted net loss for the third quarter
        of 2009 was $55 million or $0.24 loss per diluted share, impacted by an
        unusually high adjusted effective tax rate (more than 300%, due to tax
        valuation allowances) which more than offset adjusted positive pretax
        earnings of $27 million(1)--we believe our long term effective tax rate
        is 35%.  This compares to adjusted net loss of $64 million or $0.27 loss
        per diluted share for the second quarter of 2009 and adjusted net loss
        of $2 million or $0.01 loss per diluted share for the third quarter of
        2008.
    --  On October 16, 2009, we terminated our existing short term (364 day)
        accounts receivable securitization program that was scheduled to mature
        November, 2009.  We replaced it with two new multi-year securitization
        programs (a U.S. program and a European program).
    --  On September 27, 2009, we announced that our styrenics operations in
        West Footscray, Australia would be closed.  This site closure completes
        our process of exiting all commodity polymer businesses.  This operation
        represents less than 2% of our 2008 global sales, and posted an adjusted
        EBITDA loss of almost $24 million for 2008, based on an operating loss
        of approximately $29 million less impairment charges of $5 million.
    --  On August 31, 2009, we announced we had entered into a "stalking horse"
        asset and equity purchase agreement with Tronox Incorporated.  The
        agreement provides for the purchase out of bankruptcy of certain
        titanium dioxide and electrolytics production facilities, as well as a
        joint venture interest, for $415 million including working capital.  We
        expect a decision by the U.S. Bankruptcy Court in early December 2009.

    --  On July 23, 2009, we redeemed all $296 million principal amount of our
        outstanding 11.625% senior secured notes due 2010 and on August 3, 2009,
        we redeemed all $198 million principal amount of our outstanding 11.5%
        senior notes due 2012.  This debt reduction eliminated all meaningful
        debt maturities until 2013 other than our accounts receivable
        securitization programs.

Summarized earnings are as follows:



                                   Three months                   Nine months
                                       ended       Three months      ended
                                   September 30,      ended      September 30,
    In millions, except per       --------------   ------------   -----------
     share amounts                 2009    2008   June 30, 2009    2009   2008
    ------------------------       ----    ----   -------------    ----   ----

    Net (loss) income
     attributable to
     Huntsman Corporation           $(68)   $(20)          $406     $48    $11
    Adjusted net (loss) income(4)   $(55)    $(2)          $(64)  $(392)   $35

    Diluted (loss) income
     per share                    $(0.29) $(0.09)         $1.51   $0.20  $0.05
    Adjusted diluted (loss)
     income per share(4)(5)       $(0.24) $(0.01)        $(0.27) $(1.68) $0.15

    EBITDA(4)                       $107    $165           $874  $1,011   $545
    Adjusted EBITDA(4)              $200    $194            $96    $346   $592

    See end of press release for important explanations

Peter R. Huntsman, our President and CEO, stated:

"I am very pleased with our third quarter result. Our Adjusted EBITDA more than doubled to $200 million during the third quarter from $96 million in the prior quarter. We saw improved demand across our businesses and remain encouraged by our monthly year-over-year order pattern. We continue to see the positive results of our decisions during the past three years to expand our Asian operations and to focus on more differentiated chemistry while divesting of our commodity chemicals and plastics businesses. This geographic expansion and optimized product portfolio has allowed us to take advantage of markets less affected by the ongoing global recession. Additionally, our focus on costs, pricing and working capital has further contributed to our steady improvement in operating results throughout the year."

He added, "Looking forward, I am optimistic that the economic recovery will continue. While we anticipate our fourth quarter earnings to be better than last year's results for the comparable quarter, we expect fourth quarter's earnings to be seasonally lower than those announced today."


                               Huntsman Corporation
                                 Operating Results

                                                 Three months    Nine months
                                                     ended          ended
                                                 September 30,   September 30,
    In millions, except per share amounts        2009    2008    2009    2008
    -------------------------------------        ----    ----    ----    ----

    Revenues                                   $2,108  $2,731  $5,667  $8,167
    Cost of goods sold                          1,771   2,381   4,948   7,068
                                                -----   -----   -----   -----
    Gross profit                                  337     350     719   1,099
    Operating expenses                            250     254     710     807
    Restructuring, impairment and plant
     closing costs                                 62       3     139       8
                                                   --     ---     ---     ---
    Operating income (loss)                        25      93    (130)    284
    Interest expense, net                         (65)    (69)   (178)   (199)
    Loss on accounts receivable
     securitization program                        (3)     (7)    (13)    (16)
    Equity in (loss) income of investment in
     unconsolidated affiliates                     (1)      3       1      10
    (Expenses) income associated with the
     Terminated Merger and related litigation      (2)    (26)    835     (35)
    Loss on early extinguishment of debt          (21)      -     (21)      -
    Other income                                    1       1       1       1
                                                  ---     ---     ---     ---
    (Loss) income before income taxes             (66)     (5)    495      45
    Income tax expense                              -     (17)   (449)    (42)
                                                  ---     ---    ----     ---
    (Loss) income from continuing operations      (66)    (22)     46       3
    (Loss) income from discontinued
     operations, net of tax(2)                     (2)      1      (2)      5
                                                  ---     ---     ---     ---
    (Loss) income before extraordinary gain       (68)    (21)     44       8
    Extraordinary gain on the acquisition of
     a business, net of tax of nil(3)               -       1       -      10
                                                  ---     ---     ---    ----
    Net (loss) income                             (68)    (20)     44      18
    Less net loss (income) attributable to
     noncontrolling interests                       -       -       4      (7)
                                                  ---     ---     ---     ---
    Net (loss) income attributable to
     Huntsman Corporation                        $(68)   $(20)    $48     $11
                                                 ====    ====     ===     ===


    Net (loss) income attributable to
     Huntsman Corporation                        $(68)   $(20)    $48     $11
    Interest expense, net                          65      69     178     199
    Income tax expense from continuing
     operations                                     -      17     449      42
    Income tax (benefit) expense from
     discontinued operations(2,4)                  (2)      1      (2)      3
    Depreciation and amortization                 112      98     338     290
                                                  ---     ---     ---     ---
    EBITDA(4)                                    $107    $165  $1,011    $545

    Adjusted EBITDA(4)                           $200    $194    $346    $592

    Basic (loss) income per share              $(0.29) $(0.09)  $0.21   $0.05
    Diluted (loss) income per share            $(0.29) $(0.09)  $0.20   $0.05
    Adjusted diluted (loss) income per
     share(4)(5)                               $(0.24) $(0.01) $(1.68)  $0.15

    Common share information:
      Basic shares outstanding                  234.0   233.6   233.9   231.4
      Diluted shares                            234.0   233.6   238.1   231.4
      Diluted shares for adjusted income
       (loss) per share                         234.0   233.6   233.9   233.6

    See end of press release for footnote explanations



                     Huntsman Corporation
                        Segment Results

                            Three months     Nine months
                                ended           ended
                             September 30,   September 30,
    In millions              2009    2008    2009    2008
    ------------             ----    ----    ----    ----

    Segment Revenues:
      Polyurethanes          $869  $1,096  $2,164  $3,259
      Advanced Materials      273     385     785   1,191
      Textile Effects         173     229     504     734
      Performance Products    540     741   1,522   2,097
      Pigments                262     280     712     886
      Eliminations and
       other                   (9)      -     (20)      -
                              ---     ---     ---     ---

        Total              $2,108  $2,731  $5,667  $8,167
                           ======  ======  ======  ======

    Segment EBITDA(4):
      Polyurethanes          $137     $89    $249    $369
      Advanced Materials       29      42      38     128
      Textile Effects         (25)      4     (56)      7
      Performance Products     82      81     200     185
      Pigments                  4      15     (51)     33
      Corporate and other    (116)    (68)    635    (185)
      Discontinued
       operations(2)           (4)      2      (4)      8
                              ---     ---     ---     ---

              Total          $107    $165  $1,011    $545
                             ====    ====  ======    ====

    Segment Adjusted EBITDA(4) :
      Polyurethanes          $137     $89    $251    $369
      Advanced Materials       26      42      50     128
      Textile Effects         (22)      6     (43)     10
      Performance Products     82      81     200     185
      Pigments                 16      15       4      34
      Corporate and other     (39)    (39)   (116)   (134)
                              ---     ---    ----    ----
        Total                $200    $194    $346    $592
                             ====    ====    ====    ====



                             Three months ended          Nine months
                                September 30,         ended September 30,
                                2009 vs. 2008            2009 vs. 2008
                                -------------            -------------
    Period-Over-Period        Average       Sales      Average       Sales
     (Decrease) Increase   Selling Price   Volume   Selling Price   Volume
                           -------------   ------   -------------   ------

      Polyurethanes                (27)%      9%            (27)%     (9)%
      Advanced Materials
       (a)                         (12)%    (15)%           (11)%    (25)%
      Textile Effects              (17)%     (9)%           (10)%    (24)%
      Performance
       Products (b)                (27)%     (2)%           (22)%     (8)%
      Pigments                     (10)%      5%             (7)%    (14)%
                                   ---      ---             ---      ---
        Total Company
         (a)(b)(c)                 (25)%      3%            (22)%    (11)%
                                   ---      ---             ---      ---

    (a) Excludes APAO business sold July 31, 2009
    (b) Excludes revenues and sales volumes from tolling arrangements.
    (c) Excludes Australian operations to be discontinued

    See end of press release for footnote explanations

Three Months Ended September 30, 2009 Compared to Three Months Ended September 30, 2008

Revenues for the three months ended September 30, 2009 decreased to $2,108 million from $2,731 million for the same period in 2008. Revenues decreased primarily due to lower average selling prices in all our segments and lower sales volumes in our Advanced Materials, Textile Effects and Performance Products segments partially offset by sales volume increases in our Polyurethanes and Pigment segments.

For the three months ended September 30, 2009, EBITDA was $107 million compared to $165 million in the same period in 2008. Adjusted EBITDA for the three months ended September 30, 2009 was $200 million compared to $194 million for the same period in 2008 (which was impacted by $49 million of costs and lost profit margin from the 2008 U.S. Gulf Coast storms).

Polyurethanes

The decrease in revenues in our Polyurethanes segment for the three months ended September 30, 2009 compared to the same period in 2008 was primarily due to overall lower average selling prices and lower MDI sales volumes. Average MDI selling prices decreased due to competitive pressures, lower raw material costs and strength of the U.S. dollar against the Euro. Global MDI sales volumes decreased as the effects of the worldwide economic slowdown continue to affect demand. PO and MTBE sales volumes increased compared to the 2008 period, which was impacted by the 2008 U.S. Gulf Coast storms, and average selling prices decreased in response to lower raw material costs. The increase in EBITDA in our Polyurethanes segment was primarily the result of higher MTBE margins and sales volumes and the negative effects in the 2008 period caused by the 2008 U.S. Gulf Coast storms, offset in part by lower MDI sales volumes.

Advanced Materials

The decrease in revenues in our Advanced Materials segment for the three months ended September 30, 2009 compared to the same period in 2008 was due to lower sales volumes and lower average selling prices. Sales volumes decreased across all regions as a result of the worldwide economic slowdown. Average selling prices in our base resins market decreased in response to lower raw material costs while average selling prices in our formulations and specialty components markets decreased primarily as a result of the strength of the U.S. dollar against major European currencies. The decrease in EBITDA was primarily due to lower sales volumes, partially offset by lower raw material and operating costs. During the three months ended September 30, 2009 and 2008, our Advanced Materials segment recorded a restructuring and plant closing credit of $2 million and nil, respectively.

Textile Effects

The decrease in revenues in our Textile Effects segment for the three months ended September 30, 2009 compared to the same period in 2008 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily as a result of the strength of the U.S. dollar against major European currencies, the Indian rupee, the Brazilian real and the Mexican peso. Sales volumes decreased primarily due to lower demand for apparel, home and specialty textile products in the Americas and Europe as well as mill closures in these regions as a result of the worldwide economic slowdown. The decrease in EBITDA was primarily due to the lower volumes partially offset by continued fixed cost reductions. During the three months ended September 30, 2009 and 2008, our Textile Effects segment recorded restructuring and plant closing charges of $3 million and $2 million, respectively.

Performance Products

The decrease in revenues in our Performance Products segment for the three months ended September 30, 2009 compared to the same period in 2008 was due to lower average selling prices and lower sales volumes. The decrease in average selling prices was primarily due to lower raw material costs and the strengthening of the US dollar against major European currencies and the Australian dollar. Sales volumes decreased primarily due to lower demand for surfactants, partially offset by improved sales volumes across other product areas, which were impacted in the 2008 period by the 2008 U.S. Gulf Coast storms. EBITDA increased due to the effect of higher margins as raw materials costs decreased faster than selling prices and the negative effects in the 2008 period caused by the 2008 U.S. Gulf Coast storms, partially offset by lower sales volumes and commissioning expenses for our new maleic anhydride facility.

Pigments

The decrease in revenues in our Pigments segment for the three months ended September 30, 2009 compared to the same period in 2008 was due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily as a result of lower selling prices in Europe and Asia and due to the strength of the U.S. dollar against major European currencies. Sales volumes increased primarily due to higher demand in Europe. The decrease in EBITDA in our Pigments segment was primarily due to lower selling prices, higher restructuring, impairment and plant closing costs and to acquisition costs incurred in the 2009 period in connection with the proposed Tronox Transaction, offset in part by lower raw material and energy costs. During the three months ended September 30, 2009 and 2008, our Pigments segment recorded restructuring, impairment and plant closing charges of $4 million and nil, respectively.

Corporate and Other

Corporate and Other includes the results of our Australia styrenics business, unallocated foreign exchange gains and losses, unallocated corporate overhead, loss on accounts receivable securitization program, income (expenses) associated with the terminated merger with Hexion and related litigation, loss on early extinguishment of debt, income (loss) attributable to noncontrolling interests, unallocated restructuring costs, extraordinary gain on the acquisition of a business and non-operating income and expense. The decrease in EBITDA from Corporate and Other resulted partially from a $56 million increase in restructuring charges ($57 million in the 2009 period compared to $1 million in the 2008 period) primarily related to the announced closure of our styrenics operations at West Footscray, Australia. Also contributing to lower EBITDA was a $21 million charge in 2009 due to early extinguishment of debt These decreases to EBITDA were partially offset by a $24 million decrease in expenses associated with the terminated merger and related litigation ($2 million in the 2009 period compared to $26 million in the 2008 period). Additionally, the decrease in EBITDA was offset by a $2 million increase in unallocated foreign exchange gains ($6 million in gains in the 2009 period versus $4 million in gains in the 2008 period) and a $4 million reduction in costs associated with our accounts receivable securitization program.

Income Taxes

During the three months ended September 30, 2009, we recorded no income tax expense compared to $17 million of income tax expense in the same period of 2008. Despite pre-tax losses, we have not recorded tax benefits due to pre-tax losses in jurisdictions where we do not record a tax benefit due to valuation allowances. Our tax obligations are affected by the mix of income and losses in the tax jurisdictions in which we operate. In 2009, we expect to pay cash taxes of approximately $21 million primarily related to foreign taxable income and approximately $129 million primarily related to U.S. taxable income. We paid approximately $127 million in U.S. cash taxes during the third quarter associated with the settlement of our litigation in Texas with Credit Suisse and Deutsche Bank which was reduced from our earlier estimate of $185 million as a result of favorable tax offsets related to the closure of our Australia styrenics operations.

Liquidity, Capital Resources and Outstanding Debt

As of September 30, 2009, we had $2,412 million of combined cash and unused borrowing capacity compared to $1,291 million at December 31, 2008. Excluding the impact of the Texas bank litigation settlement, related taxes and the resulting redemptions of our notes in 2009, compared to prior year end our liquidity as of September 30, 2009 has remained relatively flat despite the impact of the worldwide recession on earnings. This was largely due to effective working capital management, reduced capital expenditures and minimal amount of scheduled debt maturities.

During the third quarter of 2009, our primary working capital (accounts receivable including our off balance sheet accounts receivable securitization program, inventory and accounts payable) decreased providing a cash benefit to us of $92 million. Total capital expenditures were $40 million during the third quarter of 2009 compared to $101 million for the same period in 2008. We expect to spend approximately $200 million on capital expenditures in 2009 compared to $418 million in 2008.

During the quarter we redeemed all ($296 million principal amount) of our outstanding 11.625% senior secured notes due 2010 and all ($198 million principal amount) of our outstanding 11.5% senior notes due 2012. The total redemption payments, excluding accrued interest, were a combined total of $509 million, including principal of $494 million and call premiums of approximately $15 million.

On October 16, 2009, we terminated our existing short term (364 day) accounts receivable securitization program that was scheduled to mature November 2009. We replaced it with two new multi year securitization programs (a U.S. program and a European program). The U.S. program contains a committed amount of $250 million of which $125 million is for three years at LIBOR + 3.75% annually and $125 million for two years at the commercial paper rate + 3.5% annually. The European program contains a committed amount of euro 225 million for two years at LIBOR/EURIBOR +3.75% annually. These new programs enable continued low cost borrowing for an extended period of time. We have no meaningful debt maturities until 2013 other than our accounts receivable securitization programs. We currently intend to substantially reduce the committed amount of our $650 million revolving credit facility that matures August, 2010.

In connection with our ongoing insurance claim related to the April 29, 2006 Port Arthur, Texas fire, we have received partial insurance proceeds to date of $365 million. We have claimed an additional $242 million plus interest as presently due and unpaid under our insurance policy as of September 30, 2009. Binding arbitration to settle these claims began on November 2, 2009. Any additional anticipated recoveries are expected to be used to repay secured debt.

Below is our outstanding debt:


                                           September 30,  December 31,
      In millions                              2009          2008
      -----------                              ----          ----

      Debt:
          Senior Credit Facilities           $1,966        $1,540
          Secured Notes                           -           295
          Senior Notes                          430           198
          Subordinated Notes                  1,308         1,285
          Other Debt                            286           329
          Convertible Notes                     236           235
                                                ---           ---
      Total Debt - excluding
       affiliates                             4,226         3,882
                                              -----         -----

      Total Cash                              1,626           662
                                              -----           ---

      Net Debt- excluding affiliates         $2,600        $3,220
                                             ======        ======

      Off-balance sheet accounts receivable
       securitization program                  $258          $446



                                Huntsman Corporation
                             Reconciliation of Adjustments

                                             Net Income
                                               (Loss)
                                            Attributable        Diluted
                                                 to             Income
                                              Huntsman          (Loss)
                               EBITDA       Corporation        Per Share
                              --------     --------------     -----------
                               Three           Three            Three
                               months          months           months
                               ended           ended            ended
    In millions, except     September 30,    September 30,    September 30,
     per share amounts       2009   2008     2009     2008    2009    2008
    -------------------      ----   ----     ----     ----    ----    ----

    GAAP(5)                  $107   $165     $(68)    $(20) $(0.29) $(0.09)
    Adjustments:
      Loss on accounts
       receivable
       securitization
       program                  3      7        -        -       -       -
      Unallocated foreign
       currency (gain) loss    (6)    (4)      (5)      (8)  (0.02)  (0.03)
      Loss on early
       extinguishment of
       debt                    21      -       13        -    0.06       -
      Other restructuring,
       impairment and plant
       closing costs
       (credits)               62      3       (7)       2   (0.03)   0.01
      Expenses associated
       with the Terminated
       Merger and related
       litigation               2     26        1       26       -    0.11
      Discount amortization
       on settlement
       financing associated
       with the Terminated
       Merger                   -      -        4        -    0.02       -
      Acquisition related
       expenses                 8      -        6        -    0.03       -
      Gain on disposition
       of businesses/assets    (1)     -       (1)       -       -       -
      Loss (income) from
       discontinued
       operations, net of
       tax(2)                   4     (2)       2       (1)   0.01       -
      Extraordinary gain on
       the acquisition of a
       business, net of
       tax(3)                   -     (1)       -       (1)      -       -

                              ---    ---      ---      ---     ---     ---
    Adjusted(5)              $200   $194     $(55)     $(2) $(0.24) $(0.01)
                                                              ----    ----

    Discontinued
     operations               $(4)    $2      $(2)      $1  $(0.01)     $-
      Loss (gain) on
       disposition of
       assets                   4     (2)       2       (1)   0.01       -
                              ---    ---      ---      ---    ----     ---
    Adjusted discontinued
     operations(2)             $-     $-       $-       $-      $-      $-





                                                  Three months ended June 30,
    In millions                                              2009
    -----------                                              ----

    Net income attributable to Huntsman
     Corporation                                              406
    Interest expense, net                                      58
    Income tax expense from continuing operations             311
    Depreciation and amortization                             100
    Income tax benefit from discontinued
     operations(2,4)                                           (1)
                                                              ---
    EBITDA(4)                                                $874



                                                     Net
                                                   Income
                                                   (Loss)
                                                Attributable     Diluted
                                                     to          Income
                                                   Huntsman       (Loss)
                                       EBITDA    Corporation    Per Share
                                        Three        Three        Three
                                       months       months        months
                                        ended        ended        ended
    In millions, except per share      June 30,     June 30,     June 30,
     amounts                             2009        2009         2009
    -----------------------------        ----        ----         ----

    GAAP                                 $874       $406        $1.51
    Adjustments:
      Loss on accounts receivable
       securitization program               6          -            -
      Unallocated foreign currency
       (gain) loss                         (7)         3         0.01
      Other restructuring,
       impairment and plant closing
       costs                               63         55         0.24
      Income associated with the
       Terminated Merger and related
       litigation                        (844)      (531)       (2.27)
      Loss from discontinued
       operations, net of tax(2)            4          3         0.01

                                          ---        ---         ----
    Adjusted                              $96       $(64)      $(0.27)
                                                                 ----

    Discontinued operations               $(4)       $(3)      $(0.01)
      Loss on disposition of assets         4          3         0.01

                                          ---        ---          ---
    Adjusted discontinued
     operations(2)                         $-         $-           $-




                                                 Net Income
                                                   (Loss)         Diluted
                                              Attributable To      Income
                                                  Huntsman        (Loss)
                                  EBITDA        Corporation      Per Share
                                 --------    ----------------   -----------
                                   Nine             Nine            Nine
                                  months           months          months
                                  ended            ended            ended
    In millions, except per    September 30,    September 30,   September 30,
     share amounts               2009  2008      2009    2008    2009   2008
    -----------------------      ----  ----      ----    ----    ----   ----

    GAAP(5)                    $1,011  $545       $48     $11   $0.20  $0.05
    Adjustments:
      Loss on accounts
       receivable
       securitization program      13    16         -       -       -      -
      Unallocated foreign
       currency (gain) loss       (15)    6        (2)     (3)  (0.01) (0.01)
      Loss on early
       extinguishment of debt      21     -        13       -    0.06      -
      Other restructuring,
       impairment and plant
       closing costs              139     8        62       7    0.27   0.03
      (Income) expenses
       associated with the
       Terminated Merger and
       related litigation        (835)   35      (526)     35   (2.25)  0.15
      Discount amortization on
       settlement financing
       associated with the
       Terminated Merger            -     -         5       -    0.02      -
      Acquisition related
       expenses                     9     -         7       -    0.03      -
      Gain on disposition of
       businesses/assets           (1)    -        (1)      -       -      -
      Loss (income) from
       discontinued
       operations, net of
       tax(2)                       4    (8)        2      (5)   0.01  (0.02)
      Extraordinary gain on
       the acquisition of a
       business, net of tax(3)      -   (10)        -     (10)      -  (0.04)

                                  ---   ---       ---     ---     ---   ----
    Adjusted(5)                  $346  $592     $(392)    $35  $(1.68) $0.15
                                                                 ----   ----

    Discontinued operations       $(4)   $8       $(2)     $5  $(0.01) $0.02
      Loss (gain) on
       disposition of assets        4    (8)        2      (5)   0.01  (0.02)

                                  ---   ---       ---     ---    ----   ----
    Adjusted discontinued
     operations(2)                 $-    $-        $-      $-      $-     $-

    See end of press release for footnote explanations

Conference Call Information

We will hold a conference call to discuss our third quarter 2009 financial results on Wednesday, November 4, 2009 at 8:00 a.m. ET.


    Call-in number for U.S. participants:               (888) 680 - 0869
    Call-in number for international participants:      (617) 213 - 4854
    Participant access code:                             97619227

In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PGG9DVDN6

The conference call will be available via webcast and can be accessed from the investor relations portion of the company's website at http://www.huntsman.com.

The conference call will be available for replay beginning November 4, 2009 and ending November 11, 2009.


    Call-in numbers for the replay:
         Within the U.S.:              (888) 286 - 8010
         International:                (617) 801 - 6888
    Access code for replay:             65149082

About Huntsman:

Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has more than 12,000 employees and operates from multiple locations worldwide. The Company had 2008 revenues exceeding $10 billion. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Forward-Looking Statements:

Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

    1. (1) The following table provides a reconciliation of adjusted pre-tax
       income:


                                           Three months ended September 30,
    In millions                                         2009
    -----------                                         ----

    Net loss attributable to Huntsman
     Corporation                                        $(68)
    Income tax expense from continuing
     operations                                            -
    Income tax benefit from discontinued
     operations(2,4)                                      (2)
    Adjustments before tax:
      Unallocated foreign currency gain                   (6)
      Loss on early extinguishment of debt                21
      Other restructuring, impairment and
       plant closing costs                                62
      Expenses associated with the
       Terminated Merger and related
       litigation                                          2
      Discount amortization on settlement
       financing associated with the
       Terminated Merger                                   7
      Acquisition related expenses                         8
      Gain on disposition of businesses/
       assets                                             (1)
      Loss from discontinued operations(2)                 4

                                                         ---
    Adjusted pre-tax income                              $27
                                                         ===

(2) On November 5, 2007, we completed the sale of our U.S. base chemicals business to Flint Hills Resources. On August 1, 2007, we completed the sale of our U.S. polymers business to Flint Hills Resources. Results from these businesses are treated as discontinued operations. Segment EBITDA discontinued operations only includes the results of our U.S. base chemicals and U.S. polymers businesses.

(3) On June 30, 2006, we acquired the global textile effects business of Ciba Specialty Chemicals Inc. for approximately $172 million. Because the fair value of acquired current assets less liabilities assumed exceeded the acquisition price and planned restructuring costs, the excess was recorded as an extraordinary gain on the acquisition of a business. The extraordinary gain recorded during the three months ended September 30, 2009 and 2008 was nil and $1 million respectively of which taxes were not applicable.

(4) We use EBITDA, Adjusted EBITDA, Adjusted EBITDA from discontinued operations, Adjusted net income and Adjusted net income from discontinued operations. We believe that net income (loss) attributable to Huntsman Corporation is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to EBITDA, Adjusted EBITDA and Adjusted net income. We believe that income (loss) from discontinued operations is the performance measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted EBITDA from discontinued operations and Adjusted net income from discontinued operations. Additional information with respect to our use of each of these financial measures follows:

EBITDA is defined as net income (loss) attributable to Huntsman Corporation before interest, income taxes, and depreciation and amortization. EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies. The reconciliation of EBITDA to net income (loss) available to common stockholders is set forth in the operating results table above.

Adjusted EBITDA is computed by eliminating the following from EBITDA: gains and losses from discontinued operations; restructuring, impairment and plant closing (credits) costs; income and expense associated with the Terminated Merger and related litigation; acquisition related expenses; losses on the sale of accounts receivable to our securitization program; unallocated foreign currency (gain) loss; certain legal and contract settlements; losses from early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; and loss (gain) on disposition of business/assets. The reconciliation of Adjusted EBITDA to EBITDA is set forth in the Reconciliation of Adjustments table above.

Adjusted EBITDA from discontinued operations is computed by eliminating the following from income (loss) from discontinued operations: income taxes; depreciation and amortization; restructuring, impairment and plant closing (credits) costs; losses on the sale of accounts receivable to our securitization program; unallocated foreign currency (gain) loss; gain on partial fire insurance settlement; and (gain) loss on disposition of business/assets. The following table provides a reconciliation of Adjusted EBITDA from discontinued operations to income (loss) from discontinued operations:


                                                Three
                                                months     Nine months
                                                ended         ended
                                              September     September
                                                 30,           30,
    In millions                              2009   2008   2009   2008
    ------------                             ----   ----   ----   ----

    Net (loss) income from discontinued
     operations, net of tax                   $(2)    $1    $(2)    $5
      Income tax (benefit) expense             (2)     1     (2)     3
                                              ---    ---    ---    ---
    EBITDA from discontinued operations        (4)     2     (4)     8
      Loss (gain) on disposition of assets      4     (2)     4     (8)
                                              ---    ---    ---    ---

    Adjusted EBITDA from discontinued
     operations                                $-     $-     $-     $-
                                              ===    ===    ===    ===

Adjusted net income (loss) is computed by eliminating the after tax impact of the following items from net income (loss) attributable to Huntsman Corporation: loss (income) from discontinued operations; restructuring, impairment and plant closing (credits) costs; income and expense associated with the Terminated Merger and related litigation; discount amortization on settlement financing associated with the Terminated Merger; acquisition related expenses; unallocated foreign currency (gain) loss; certain legal and contract settlements; losses on the early extinguishment of debt; extraordinary loss (gain) on the acquisition of a business; and loss (gain) on disposition of business/assets. The reconciliation of adjusted net income (loss) to net income (loss) attributable to Huntsman Corporation common stockholders is set forth in the Reconciliation of Adjustments table above.

Adjusted net income (loss) from discontinued operations is computed by eliminating the after tax impact of the following items from income (loss) from discontinued operations: restructuring, impairment and plant closing (credits) costs; gain on partial fire insurance settlement; and (gain) loss on the disposition of business/assets. The reconciliation of Adjusted net income (loss) from discontinued operations to net income (loss) available to common stockholders is set forth in the Reconciliation of Adjustments table above.

(5) Diluted income (loss) per share for GAAP net income (loss) attributable to Huntsman Corporation and for adjusted net income (loss) attributable to Huntsman Corporation is calculated using the following information:


                                                               Nine months
                                               Three months       ended
                                                   ended        September
                                               September 30,        30,
    In millions, except per share amounts       2009    2008    2009   2008
    -------------------------------------       ----    ----    ----   ----

    GAAP
      Net (loss) income attributable to
       Huntsman Corporation                     $(68)   $(20)    $48    $11
      Convertible notes interest expense,
       net of tax                                  -       -       -      -
                                                 ---     ---     ---    ---
      Net (loss) income attributable to
       Huntsman Corporation and assumed
       conversion of notes                      $(68)   $(20)    $48    $11
                                                 ===     ===     ===    ===

      Diluted shares                           234.0   233.6   238.1  231.4

      Diluted (loss) income per share         $(0.29) $(0.09)  $0.20  $0.05

    Adjusted
      Net (loss) income attributable to
       Huntsman Corporation                     $(55)    $(2)  $(392)   $35
      Convertible notes interest expense,
       net of tax                                  -       -       -      -
                                                 ---     ---     ---    ---
      Net (loss) income attributable to
       Huntsman Corporation and assumed
       conversion of notes                      $(55)    $(2)  $(392)   $35
                                                 ===     ===     ===    ===

      Diluted shares                           234.0   233.6   233.9  233.6

      Diluted (loss) income per share         $(0.24) $(0.01) $(1.68) $0.15

SOURCE Huntsman Corporation