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Huntsman Releases Second Quarter 2010 Results

IMPROVED DEMAND LEADS TO SECOND QUARTER EARNINGS OF: $116 MILLION IN NET INCOME AND $257 MILLION IN ADJUSTED EBITDA

THE WOODLANDS, Texas, Aug. 5 /PRNewswire-FirstCall/ -- (NYSE: HUN)

Second Quarter 2010 Highlights

    --  Revenues for the second quarter of 2010 were $2,343 million, an increase
        of 27% compared to $1,846 million for the same period in 2009 and an
        increase of 12% compared to $2,094 million for the first quarter of
        2010.
    --  Adjusted EBITDA for the second quarter of 2010 was $257 million compared
        to $93 million for the same period in 2009 and $123 million for the
        first quarter of 2010.
    --  Net income attributable to Huntsman Corporation for the second quarter
        of 2010 was $114 million or $0.47 per diluted share. This compares to
        net income attributable to Huntsman Corporation of $406 million or $1.51
        per diluted share for the same period in 2009 (including $531 million of
        net income or $2.27 per diluted share related to our terminated merger
        and related litigation) and $172 million loss or $0.73 loss per diluted
        share for the first quarter of 2010.
    --  Adjusted net income for the second quarter of 2010 was $75 million or
        $0.31 per diluted share. This compares to an adjusted net loss of $66
        million or $0.28 loss per diluted share for the same period in 2009 and
        adjusted net loss of $16 million or $0.07 loss per diluted share for the
        first quarter of 2010.
    --  Adjusted net income and adjusted EBITDA for the second quarter 2010
        includes a non-recurring $15 million pre-tax benefit to appropriately
        reflect our investment in the Sasol-Huntsman maleic anhydride joint
        venture. Adjusted net income also includes a $15 million pre-tax one
        time reduction to interest expense related to a cross currency swap. The
        combined effect of these non-recurring items was approximately $0.09 per
        diluted share.


Summarized earnings are as follows:


                Three months ended  Three months
                June 30,            ended           Six months ended June 30,

In millions,
except per
share amounts   2010    2009        March 31, 2010  2010      2009



Net income
(loss)
attributable
to Huntsman
Corporation     $ 114   $ 406       $ (172)         $ (58)    $ 116

Adjusted net
income (loss)
(1)             $ 75    $ (66)      $ (16)          $ 59      $ (333)



Diluted income
(loss) per
share           $ 0.47  $ 1.51      $ (0.73)        $ (0.25)  $ 0.47

Adjusted
diluted income
(loss) per
share(1)        $ 0.31  $ (0.28)    $ (0.07)        $ 0.25    $ (1.42)



EBITDA(1)       $ 331   $ 874       $ (55)          $ 276     $ 904

Adjusted
EBITDA(1)       $ 257   $ 93        $ 123           $ 380     $ 150



See end of press release for footnote explanations





Recent Highlights

    --  On April 26, 2010, we prepaid $164 million of bank term debt.
    --  On June 22, 2010, we prepaid $110 million of bank term debt. The
        pre-payment was equivalent to the amount we received from our
        reinsurance carriers in settlement of our unpaid claims arising out of
        the April 29, 2006 fire at our Port Arthur, Texas, olefins facility.


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

"The second quarter of 2010 was a strong quarter for us, the combination of a number of conditions resulted in adjusted earnings we haven't seen since 2007.  We saw strong underlying demand for our products as volumes grew across all of our businesses compared to the prior year as well as the prior quarter.  We increased selling prices to offset recent pressure in raw material costs.  In addition, the benefits of our successful cost saving efforts implemented in 2009 are evident in the bottom line."

He continued, "The third quarter is traditionally slower than the second within the chemical industry; notwithstanding this, we believe there is still significant long term upside to our business earnings.  North American and European economies, which represent approximately two thirds of our volume, still show relatively modest growth.  We continue to have idle capacity in many of our products that will be more fully utilized as demand improves.  We are excited about the future of HUN and will continue our efforts to improve earnings in every division of the company."


Huntsman Corporation

Operating Results



                         Three months ended June 30,  Six months ended June 30,

In millions, except per
share amounts            2010    2009                 2010      2009



Revenues                 $2,343  $1,846               $4,437    $3,526

Cost of goods sold       1,958   1,613                3,771     3,144

Gross profit             385     233                  666       382

Operating expenses       241     233                  497       455

Restructuring,
impairment and plant
closing costs            17      62                   20        76

Operating income (loss)  127     (62)                 149       (149)

Interest expense, net    (43)    (58)                 (104)     (113)

Loss on accounts
receivable
securitization programs  -       (6)                  -         (10)

Equity in income of
investment in
unconsolidated
affiliates               16      1                    17        2

Loss on early
extinguishment of debt   (7)     -                    (162)     -

(Expenses) income
associated with the
terminated merger and
related litigation       (1)     844                  (1)       837

Other income             1       -                    1         -

Income (loss) before
income taxes             93      719                  (100)     567

Income tax expense       (39)    (311)                (5)       (449)

Income (loss) from
continuing operations    54      408                  (105)     118

Income (loss) from
discontinued
operations, net of tax
(2)                      62      (2)                  49        (6)

Net income (loss)        116     406                  (56)      112

Less net (income) loss
attributable to
noncontrolling
interests                (2)     -                    (2)       4

Net income (loss)
attributable to
Huntsman Corporation     $ 114   $ 406                $ (58)    $ 116





Net income (loss)
attributable to
Huntsman Corporation     $ 114   $ 406                $ (58)    $ 116

Interest expense, net    43      58                   104       113

Income tax expense from
continuing operations    39      311                  5         449

Income tax expense
(benefit) from
discontinued operations
(1)(2)                   37      (1)                  29        -

Depreciation and
amortization of
continuing operations    97      99                   195       225

Depreciation and
amortization of
discontinued operations  1       1                    1         1

EBITDA(1)                $ 331   $ 874                $ 276     $ 904



Adjusted EBITDA(1)       $ 257   $ 93                 $ 380     $ 150



Basic income (loss) per
share                    $ 0.48  $ 1.74               $ (0.25)  $ 0.50

Diluted income (loss)
per share                $ 0.47  $ 1.51               $ (0.25)  $ 0.47

Adjusted diluted income
(loss) per share(1)      $ 0.31  $ (0.28)             $ 0.25    $ (1.42)



Common share
information:(3)

Basic shares
outstanding              236.4   234.0                235.6     233.8

Diluted shares           240.8   271.3                235.6     268.8

Diluted shares for
adjusted diluted income
(loss) per share         240.8   234.0                240.8     233.8



See end of press release for footnote explanations






Huntsman Corporation

Segment Results



                      Three months ended June 30,    Six months ended June 30,

In millions           2010     2009                  2010     2009



Segment Revenues:

Polyurethanes         $ 932    $ 695                 $ 1,699  $ 1,295

Performance Products  669      482                   1,285    982

Advanced Materials    320      255                   611      512

Textile Effects       213      179                   408      331

Pigments              287      254                   556      450

Eliminations and
other                 (78)     (19)                  (122)    (44)



Total                 $ 2,343  $ 1,846               $ 4,437  $ 3,526



Segment EBITDA(1):

Polyurethanes         $ 70     $ 86                  $ 122    $ 112

Performance Products  116      31                    176      94

Advanced Materials    52       (1)                   85       9

Textile Effects       (7)      (20)                  (7)      (31)

Pigments              47       (26)                  75       (55)

Corporate, LIFO and
other                 (47)     806                   (254)    780

Discontinued
operations(2)         100      (2)                   79       (5)



Total                 $ 331    $ 874                 $ 276    $ 904



Segment Adjusted
EBITDA(1) :

Polyurethanes         $ 71     $ 87                  $ 123    $ 114

Performance Products  116      31                    176      94

Advanced Materials    52       14                    83       24

Textile Effects       8        (10)                  8        (21)

Pigments              49       4                     78       (12)

Corporate, LIFO and
other                 (39)     (33)                  (88)     (49)

Total                 $ 257    $ 93                  $ 380    $ 150



See end of press release for footnote explanations






                    Three months ended June 30,    Six months ended June 30,

                    2010 vs. 2009                  2010 vs. 2009

                    Average Selling Price          Average Selling Price
Period-Over-Period  (a)                            (a)

Increase                      Foreign                        Foreign
(Decrease)          Local     Currency     Sales   Local     Currency     Sales

                              Translation  Volume            Translation  Volume
                    Currency  Impact       (a)     Currency  Impact       (a)



Polyurethanes       11%       0%           17%     21%       1%           3%

Performance
Products            12%       0%           27%     6%        2%           24%

Advanced Materials
(b)                 6%        0%           25%     (2)%      2%           26%

Textile Effects     6%        2%           10%     5%        3%           14%

Pigments            7%        (1)%         7%      4%        1%           18%

Total Company(b)    7%        0%           19%     9%        2%           13%



(a) Excludes revenues and sales volumes from tolling and by-products

(b) Excludes APAO business sold July 31, 2009





Three Months Ended June 30, 2010 Compared to Three Months Ended June 30, 2009

Revenues for the three months ended June 30, 2010 increased to $2,343 million from $1,846 million for the same period in 2009.  Revenues increased due to higher sales volumes and higher selling prices in all divisions.  For the three months ended June 30, 2010, Adjusted EBITDA was $257 million compared to $93 million for the same period in 2009.

Polyurethanes

The increase in revenues in our Polyurethanes division for the three months ended June 30, 2010 compared to the same period in 2009 was primarily due to higher average selling prices and higher sales volumes.  Average selling prices for MDI and PO/MTBE increased in response to higher raw material costs.  MDI sales volumes increased as a result of improved demand in all regions and across all major markets with the exception of appliances, while PO/MTBE sales volumes increased generally due to improved demand.  The decrease in Adjusted EBITDA was primarily due to lower PO/MTBE margins partially offset by higher MDI margins.

Performance Products

The increase in revenues in our Performance Products division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes.  Average selling prices increased across almost all product groups primarily in response to higher raw materials costs.  Sales volumes increased primarily due to higher demand across all product groups and additional sales of ethylene glycol which had previously been produced under tolling arrangements.  The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins.  In addition, equity income from investment in unconsolidated affiliates for the three months ended June 30, 2010 increased to $16 million compared to $1 million in the 2009 period.  During the second quarter of 2010, we recorded a non-recurring $15 million credit to appropriately reflect our investment in the Sasol-Huntsman GmbH and Co. KG Maleic Anhydride joint venture.

Advanced Materials

The increase in revenues in our Advanced Materials division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices.  Sales volumes increased in all regions of the world and across almost all product groups primarily due to the worldwide economic recovery.  Average selling prices increased in our base resins business primarily in response to higher raw material costs and reduced product availability in the epoxy resin market, partially offset by lower average selling prices in our specialty components and formulations markets primarily as a result of changes in our product mix and competitive market pressure. The increase in Adjusted EBITDA was primarily due to higher sales volumes, higher contribution margins and lower fixed costs.

Textile Effects

The increase in revenues in our Textile Effects division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher sales volumes and higher average selling prices.  Sales volumes increased across all business lines and in all regions primarily due to the worldwide economic recovery.  Average selling prices increased primarily due to favorable changes in product mix and the strength of the Indian Rupee and Brazilian Real against the U.S. dollar.  The increase in Adjusted EBITDA was primarily due to higher sales volumes and higher contribution margins partially offset by higher fixed costs in part due to our second quarter 2009 acquisition of Baroda.

Pigments

The increase in revenues in our Pigments division for the three months ended June 30, 2010 compared to the same period in 2009 was due to higher average selling prices and higher sales volumes.  Average selling prices increased primarily as a result of price increase initiatives in all regions of the world partially offset by the strength of the U.S. dollar against major European currencies.  Sales volumes increased primarily due to demand recovery in Europe and North America.  The increase in Adjusted EBITDA in our Pigments division was primarily due to higher contribution margins, higher sales volumes and the benefits of recent restructuring efforts.

Corporate, LIFO and Other

Corporate, LIFO and other includes unallocated foreign exchange gains and losses, unallocated corporate overhead, loss on our 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 non-controlling interests, unallocated restructuring costs, LIFO inventory valuation reserve adjustments and non-operating income and expense. The decrease in Adjusted EBITDA from Corporate, LIFO and Other for the three months ended June 30, 2010 compared to the same period in 2009 resulted primarily from an increase of LIFO inventory valuation expense of $3 million.

Income Taxes

During the three months ended June 30, 2010, we recorded income tax expense of $39 million compared to $311 million of income tax expense in the same period of 2009.  Our adjusted effective tax rate for the second quarter of 2010 was approximately 40%.  We have tax valuation allowances in countries such as Switzerland and the United Kingdom where our Textile Effects and Pigments businesses have meaningful operations.  As these businesses return to greater levels of profitability we expect these tax valuation allowances to eventually be removed.  In the meantime, we expect our income tax rate to be fairly volatile.   We expect our long term effective income tax rate to be approximately 30 - 35%.  Unusual income tax rates caused by valuation allowances have no impact on our cash taxes.  During the second quarter of 2010 we paid $2 million in cash for income taxes.  We expect our cash tax rate to continue to be significantly less than our effective income tax rate.

Liquidity, Capital Resources and Outstanding Debt

As of June 30, 2010, we had $1,185 million of combined cash and unused borrowing capacity compared to $2,510 million at December 31, 2009.  The decrease from year end was primarily attributable to the reduction in unused bank credit facilities of $450 million, the repurchase of convertible notes of $382 million, repayment of $185 million of bank term debt, and an increase in primary working capital of $340 million.

Beginning January 1, 2010, as a result of changes in accounting guidelines outstanding borrowings related to the sales of accounts receivable under our accounts receivable programs are accounted for as secured borrowings.  Excluding the impact of this change, our primary working capital (accounts receivable, inventory and accounts payable) increased due in part to increased demand, higher prices, partially offset by the strength of the U.S. dollar against major European currencies.  Total capital expenditures were $41 million during the second quarter of 2010 compared to $39 million for the same period in 2009.  We expect to spend between $225 and $250 million on capital expenditures in 2010.  

On April 26, 2010, we prepaid $164 million of bank term debt.  On June 22, 2010, we prepaid $110 million of bank term debt.  The June pre-payment was equivalent to the amount we received in the second quarter from our reinsurance carriers in settlement of our claims as a result of the April 29, 2006, fire at our Port Arthur, Texas, olefins facility.

Below is our outstanding debt:


                                    June 30,   December 31,

 In millions                        2010       2009(a)



 Debt:

 Senior Credit Facilities           $ 1,685    $ 1,968

 Accounts Receivable Programs(a)    226        254

 Senior Notes                       442        434

 Subordinated Notes                 1,234      1,294

 Other Debt                         280        280

 Convertible Notes                  -          236

 Total Debt - excluding affiliates  3,867      4,466



 Total Cash                         773        1,750



 Net Debt- excluding affiliates     $ 3,094    $ 2,716





(a) Effective January 1, 2010, as a result of changes in accounting
guidelines, our off-balance
sheet accounts receivable securitization programs are now reported on
balance sheet as secured
debt. December 31, 2009 figures are presented on a pro-forma basis to
reflect this change.






Huntsman Corporation

Reconciliation of Adjustments





                                    Net Income (Loss)   Diluted Income (Loss)

                                    Attributable to
                                    Huntsman
                EBITDA              Corporation         Per Share

                Three months ended  Three months ended  Three months ended June
                June 30,            June 30,            30,

In millions,
except per
share amounts   2010   2009         2010   2009         2010      2009



GAAP            $ 331  $ 874        $ 114  $ 406        $ 0.47    $ 1.51

Adjustments:

Loss on
accounts
receivable
securitization
programs        -      6            -      -            -         -

Unallocated
foreign
currency
(gain) loss     -      (7)          (4)    3            (0.02)    0.01

Loss on early
extinguishment
of debt         7      -            4      -            0.02      -

Other
restructuring,
impairment and
plant closing
costs           17     62           17     54           0.07      0.23

Expenses
(income)
associated
with the
terminated
merger and
related
litigation      1      (844)        1      (531)        -         (2.27)

Discount
amortization
on settlement
financing
associated
with the
terminated
merger          -      -            4      -            0.02      -

Acquisition
related
expenses        1      -            1      -            -         -

(Income) loss
from
discontinued
operations,
net of tax(2)   (100)  2            (62)   2            (0.26)    0.01



Adjusted(1)     $ 257  $ 93         $ 75   $ (66)       $ 0.31    $ (0.28)



Discontinued
operations      $ 100  $ (2)        $ 62   $ (2)        $ 0.26    $ (0.01)

Restructuring,
impairment and
plant closing
costs           -      1            -      1            -         -

Loss on
disposition of
assets          4      4            3      3            0.01      0.01

Gain on fire
insurance
settlement      (110)  -            (71)   -            (0.29)    -



Adjusted
discontinued
operations(1)
(2)             $ (6)  $ 3          $ (6)  $ 2          $ (0.02)  $ 0.01



Total -
adjusted
continuing and
discontinued
operations      $ 251  $ 96         $ 69   $ (64)       $ 0.29    $ (0.27)








                                                 Three months ended March 31,

In millions                                      2010



Net loss attributable to Huntsman Corporation    (172)

Interest expense, net                            61

Income tax benefit from continuing operations    (34)

Income tax benefit from discontinued operations
(2)                                              (8)

Depreciation and amortization                    98



EBITDA(1)                                        $ (55)








                                                            Diluted Income
                                      Net Income (Loss)     (Loss)

                                      Attributable to
                                      Huntsman
                   EBITDA             Corporation           Per Share

                   Three months       Three months ended    Three months ended
                   ended March 31,    March 31,             March 31,

In millions,
except per share
amounts            2010               2010                  2010



GAAP               $ (55)             $ (172)               $ (0.73)

Adjustments:

Unallocated
foreign currency
gain               (1)                (6)                   (0.03)

Loss on early
extinguishment of
debt               155                143                   0.61

Other
restructuring,
impairment and
plant closing
costs              3                  2                     0.01

Discount
amortization on
settlement
financing
associated with
the terminated
merger             -                  4                     0.02

Loss from
discontinued
operations, net
of tax(2)          21                 13                    0.06



Adjusted           $ 123              $ (16)                $ (0.07)



Discontinued
operations         $ (21)             $ (13)                $ (0.06)

Other
restructuring,
impairment and
plant closing
costs              5                  3                     0.01

Loss on
disposition of
assets             8                  5                     0.02

Gain on fire
insurance
settlement         (7)                (4)                   (0.02)



Adjusted
discontinued
operations(2)      $ (15)             $ (9)                 $ (0.04)



Total - adjusted
continuing and
discontinued
operations         $ 108              $ (25)                $ (0.11)








                                  Net Income (Loss)      Diluted Income (Loss)

                                  Attributable To
                EBITDA            Huntsman Corporation   Per Share

                Six months ended  Six months ended June  Six months ended June
                June 30,          30,                    30,

In millions,
except per
share amounts   2010    2009      2010    2009           2010      2009



GAAP(2)         $ 276   $ 904     $ (58)  $ 116          $ (0.25)  $ 0.47

Adjustments:

Loss on
accounts
receivable
securitization
program         -       10        -       -              -         -

Unallocated
foreign
currency
(gain) loss     (1)     (9)       (10)    3              (0.04)    0.01

Loss on early
extinguishment
of debt         162     -         147     -              0.61      -

Other
restructuring,
impairment and
plant closing
costs           20      76        19      68             0.08      0.29

Expenses
(income)
associated
with the
terminated
merger and
related
litigation      1       (837)     1       (527)          -         (2.25)

Discount
amortization
on settlement
financing
associated
with the
terminated
merger          -       -         8       -              0.03      -

Acquisition
related
expenses        1       1         1       1              -         -

(Income) loss
from
discontinued
operations,
net of tax(2)   (79)    5         (49)    6              (0.20)    0.03



Adjusted(1)(2)  $ 380   $ 150     $ 59    $ (333)        $ 0.25    $ (1.42)



Discontinued
operations      $ 79    $ (5)     $ 49    $ (6)          $ 0.20    $ (0.03)

Restructuring,
impairment and
plant closing
costs           5       1         3       1              0.01      -

Loss on
disposition of
assets          12      -         8       -              0.03      -

Gain on
hurricane
insurance
settlement      (7)     -         (7)     -              (0.03)    -

Gain on fire
insurance
settlement      (110)   -         (68)    -              (0.28)    -



Adjusted
discontinued
operations(1)
(2)             $ (21)  $ (4)     $ (15)  $ (5)          $ (0.06)  $ (0.02)



Total -
adjusted
continuing and
discontinued
operations      $ 359   $ 146     $ 44    $ (338)        $ 0.18    $ (1.45)



See end of
press release
for footnote
explanations





Conference Call Information

We will hold a conference call to discuss our 2010 second quarter results on Thursday, August 5, 2010 at 10:00 a.m. ET.


Call-in number for U.S. participants:          (888) 713 - 4213

Call-in number for international participants: (617) 213 - 4865

Participant access code:                       24187331





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=P4LNJY8PF

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 August 5, 2010 and ending August 12, 2010.


Call-in numbers for the replay:

 Within the U.S.:       (888) 286 - 8010

 International:         (617) 801 - 6888

Access code for replay: 71378240





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 approximately 11,000 employees and operates from multiple locations worldwide. The Company had 2009 revenues of approximately $8 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.  The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.


(1) 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) attributable to Huntsman
    Corporation 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 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 ended June
                             30,                      Six months ended June 30,

In millions                  2010   2009              2010    2009



Net income (loss) from
discontinued operations, net
of tax                       $ 62   $ (2)             $ 49    $ (6)

Income tax expense
(benefit)                    37     (1)               29      -

Depreciation and
amortization                 1      1                 1       1

EBITDA from
discontinued
operations                   100    (2)               79      (5)

Restructuring,
impairment and
plant closing costs          -      1                 5       1

Loss on disposition
of assets                    4      4                 12      -

Gain on hurricane
insurance
settlement                   -      -                 (7)     -

Gain on fire
insurance
settlement                   (110)  -                 (110)   -

Adjusted EBITDA
from discontinued
operations                   $ (6)  $ 3               $ (21)  $ (4)






    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 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) attributable to
    Huntsman Corporation is set forth in the Reconciliation of Adjustments
    table above.



(2) On August 1, 2007, we completed the sale of our U.S. polymers business to
    Flint Hills Resources. On November
    5, 2007, we completed the sale of our U.S. base chemicals business to Flint
    Hills Resources. Results from these
    businesses are treated as discontinued operations. Division EBITDA from
    discontinued operations only includes
    the results of our U.S. base chemicals and U.S. polymers businesses. During
    the first quarter 2010 we closed our
    Australian styrenics operations.



(3) 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:






                         Three months ended June 30,  Six months ended June 30,

In millions, except per
share amounts            2010    2009                 2010      2009



GAAP

Net income (loss)
attributable to
Huntsman Corporation     $ 114   $ 406                $ (58)    $ 116

Convertible notes
interest expense, net
of tax                   -       5                    -         9

Net income (loss)
attributable to
Huntsman Corporation
and assumed conversion
of notes                 $ 114   $ 411                $ (58)    $ 125



Diluted shares           240.8   271.3                235.6     268.8



Diluted income (loss)
per share                $ 0.47  $ 1.51               $ (0.25)  $ 0.47



Adjusted

Net income (loss)
attributable to
Huntsman Corporation     $ 75    $ (66)               $ 59      $ (333)

Convertible notes
interest expense, net
of tax                   -       -                    -         -

Net income (loss)
attributable to
Huntsman Corporation
and assumed conversion
of notes                 $ 75    $ (66)               $ 59      $ (333)



Diluted shares           240.8   234.0                240.8     233.8



Diluted income (loss)
per share                $ 0.31  $ (0.28)             $ 0.25    $ (1.42)





SOURCE Huntsman Corporation