LSB INDUSTRIES UPDATES STATUS OF PRYOR CHEMICAL COMPANY'S PRODUCTION

News Release

LSB INDUSTRIES UPDATES STATUS OF PRYOR CHEMICAL COMPANY'S PRODUCTION

Oklahoma City, Oklahoma – January 6, 2011 - LSB Industries, Inc. ("LSB"), (NYSE: LXU) today announced recent production volumes at its subsidiary, Pryor Chemical Company ("Pryor"), located in Pryor, Oklahoma.

For the month of November 2010, the Pryor plant produced and sold approximately 16,500 tons of anhydrous ammonia.

For the month of December, Pryor produced approximately 16,500 tons of anhydrous ammonia. Approximately 4,700 tons of the ammonia were converted into 11,500 tons of urea ammonium nitrate ("UAN") and most of the balance was sold as ammonia. Throughout November and December, market demand for ammonia was strong and most ammonia produced at Pryor was sold, rather than converted to UAN. We expect to be able to satisfy customer demand for UAN as we convert more ammonia to UAN to meet seasonal demand.

Jack Golsen, LSB’s Board Chairman and CEO, "The Pryor plant is up and running and producing to our expectations. We believe that Pryor is a valuable asset to LSB as it is strengthening our agricultural market presence."

LSB is a manufacturing, marketing and engineering company. LSB’s principal business activities consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils, large custom air handlers, modular geothermal chillers; the manufacture and sale of chemical products for the mining, agricultural and industrial markets; and the provision of specialized engineering services and other activities. LSB is included in the Russell 2000 Index and the Russell 3000 Index.

 

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 "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects", or similar expressions, and such forward-looking statements include, but are not limited to, "we expect to be able to satisfy our customer demand for UAN as we convert more ammonia to UAN and Pryor is strengthening our agricultural market presence." 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, but not limited to, general economic conditions; changes to federal legislation or adverse regulations, available working capital, weather conditions, production equipment problems, labor issues, and other factors set forth under "A Special Note Regarding Forward-Looking Statements" contained in the Form 10-K for year ended December 31, 2009 and quarterly reports on Form 10-Q for quarters ended March 31, 2010, June 30, 2010, and September 30, 2010, for a discussion of a variety of factors which could cause the future outcome to differ materially from the forward-looking statements contained in this press release.

# # #