May 22, 2007

CTA Acoustics Accepts Verdict; Jury Finds Borden Chemical 100 Percent Liable

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CORBIN, Kentucky, May 22, 2007 – CTA Acoustics, Inc. today announced that a jury in the Circuit Court of Laurel County, Kentucky has found Borden Chemicals 100 percent liable for the explosion and fire that killed seven employees at the CTA Acoustics plant in Corbin, Kentucky on February 20, 2003.

“We are very gratified that the jury has found Borden 100 percent liable for this tragedy,” said CTA Chairman and CEO James J. Pike. “The jury clearly understood that the phenolic resin sold by Borden was similarly involved in a deadly explosion at the Jahn Foundry in Springfield, Massachusetts on February 25, 1999 in which three people were killed and nine people were injured. Following that tragedy, Borden failed to notify any of its customers or to change the classification of their phenolic resin on their Materials Safety Data Sheet (MSDS) or to change their labeling to indicate the explosive characteristics of their phenolic resin powder,” said Pike.

“While we are gratified that the jury has vindicated CTA, we cannot help but feel a deep and continuing sense of loss for our seven employees and our other employees who were injured. We believe in the community and have tried to honor the community by remaining here in southeast Kentucky, building twin new plants, and continuing to provide good jobs to the people of this area,” said Pike.

Overcoming the loss of its plant in the explosion and the subsequent defection of its key customer, CertainTeed, the management of CTA immediately identified a new site and within one year constructed and equipped new twin 125,000 sq. ft manufacturing plants at their new facility in Corbin, Kentucky. CertainTeed, which had built the original CTA plant, has since left the region and constructed a new facility in Sherman, Texas.

CTA Acoustics is a leading supplier of acoustical and thermal insulation products to the automotive and construction industries. Despite a downturn in the automotive industry, the company has relied upon its Corbin workforce and innovative technologies to gain Nissan and DaimlerChrysler as new customers and to continue its business with Ford and increase its business with General Motors. The employment level at the CTA facility has returned to nearly 500 people.

“We have had some incredibly tough times, but with the support of our people and the entire community we have persevered and are steadily making our way back, but we will never forget losing those seven people,” said Pike.