LSB Industries, Inc. Provides Update on Repair and Upgrade Activities at Its Pryor, Oklahoma and Cherokee, Alabama Facilities

  LSB Industries, Inc. Provides Update on Repair and Upgrade Activities at Its
  Pryor, Oklahoma and Cherokee, Alabama Facilities

Business Wire

OKLAHOMA CITY -- January 14, 2013

LSB Industries, Inc. (the “Company”) (NYSE: LXU) today announced that it
expects to complete the installation of a new ammonia converter and resume
production at its Pryor, Oklahoma chemical facility (“Pryor Facility”) in the
first half of February 2013. As announced on November 21, 2012, the Company
had stopped production at the Pryor Facility to perform unplanned maintenance
on a compressor, as well as for the planned installation of a new ammonia
converter designed to improve and increase ammonia production capacity. The
Company initially anticipated an outage of approximately six to eight weeks;
however, while the compressor maintenance has been completed, delay in the
delivery of certain components related to the converter installation has
pushed out by approximately four weeks the expected timeframe for restarting
the Pryor Facility. The Company estimated that the adverse effect of this
downtime on operating income is approximately $2 million per week until
production resumes.

Additionally, the Company provided an update on its Cherokee Nitrogen facility
(“Cherokee Facility”), following its November 14, 2012 announcement that the
Cherokee Facility suffered a pipe rupture that damaged the heat exchanger
portion of its ammonia plant. Since that time, the Cherokee Facility has been
producing nitric acid and ammonium nitrate at the targeted production level,
using purchased ammonia feedstock. Management expects repairs to be completed
and production to be resumed within the previously estimated three to five
month range.

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

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements generally are identifiable by use of the words
“believe,” “expects,” “intends,” “plans to,” “estimates,” “projects,” or
similar expressions, and such forward-looking statements include, but are not
limited to the time when the new ammonia converter will be installed and
production will resume at the Pryor Facility, the amount of the adverse effect
on operating income during the downtime at the Pryor Facility, and the time
when the repairs will be completed and production will resume at the Cherokee
Facility. Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties, and that
actual results may differ materially from the forward-looking statements, as a
result of various factors, including, without limitation, general economic
conditions, ability to obtain replacement and repair equipment and parts in a
timely manner, weather conditions, labor conditions, and other factors set
forth under “A Special Note Regarding Forward-Looking Statements” in our Form
10-K for year ended December 31, 2011, and the Form 10-Qs for the quarters
ended March 31, 2012, June 30, 2012 and September 30, 2012.

Contact:

Company:
LSB Industries, Inc.
Tony M. Shelby, 405-235-4546
Chief Financial Officer
or
Investor Relations:
The Equity Group Inc.
Linda Latman, 212-836-9609
Fred Buonocore, 212-836-9607