POLYCHEM ALLOY^® ADDING 20 MILLION POUNDS PRODUCTION CAPACITY

LENOIR, NORTH CAROLINA, U.S.A., January 30, 2003 --- PolyChem Alloy^®, Inc. (PCA) has added a state-of-the-art Coperion 800 horse power mega compounder to satisfy increased and anticipated future demands of specialty thermoplastic elastomers and a range of impact modifiers for engineering resins. This new compounding line gives PCA an additional 20+ million pounds annual production capacity.

The growth is spurred by increasing demands of PCA specialized compounds and additive masterbatches in both the domestic and overseas markets. The European sales and marketing efforts shall be handled by a newly formed sales team, headed by Ron McGregor in Kent, UK.

Headquartered in Lenoir, North Carolina, U.S.A., PolyChem Alloy^®, Inc. is a technology based manufacturer of additives and chemical masterbatches and compounds. At PolyChem Alloy^®, Inc. complying with six sigma protocol is the norm rather than the exception. PolyChem Alloy^®, Inc. produces, inter-alia, an array of thermoplastic elastomers (TPE) with Shore-A hardness ranging from ‘00’ to a Shore-A hardness of ‘70’, zero halogen FR compounds, and ultra low temperature (< -50oC) impact modifiers for the engineering resins. PolyChem holds several proprietary and patented technologies in polymer modifications and specialized additive masterbatches. Visit our web site: www.polychemalloy.com

READER INQUIRY INFORMATION: Address all mail inquiries to PolyChem Alloy^®, Inc., 240 Polychem Ct., Lenoir, NC 28645, U.S.A. Telephone +828/754-7570. Fax: +828/754-9772. E-mail: polychem@polychemalloy.com.