UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13D

                    Under the Securities Exchange Act of 1934
                             (Amendment No. _____)*

                              LSB Industries, Inc.
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                     Common Stock, par value $.10 per share
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    502160104
- --------------------------------------------------------------------------------
                                 (CUSIP Number)

                            Louis J. Bevilacqua, Esq.
                          Cadwalader, Wickersham & Taft
                                 100 Maiden Lane
                            New York, New York 10038
                                 (212) 504-6057
- --------------------------------------------------------------------------------
   (Name, Address and Telephone Number of Person Authorized to Receive Notices
                               and Communications)

                                 August 27, 1997
- --------------------------------------------------------------------------------
             (Date of Event which Requires Filing of this Statement)

If the filing person has previously  filed a statement on Schedule 13G to report
the  acquisition  which is the subject of this  Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|.

Note: Six copies of this statement, including all exhibits, should be filed with
the  Commission.  See Rule  13d-1(a) for other  parties to whom copies are to be
sent.

*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for  any  subsequent   amendment   containing   information  which  would  alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).





- -------------------                                           ------------------
CUSIP No. 502160104                    13D                    Page 2 of 10 Pages
- -------------------                                           ------------------


- ------- ------------------------------------------------------------------------
1       NAME OF REPORTING PERSON  Wynnefield Partners Small Cap Value L.P.
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        13-3688497
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
        (a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
        2(d) or 2(e)

- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        Delaware
- ------- ------------------------------------------------------------------------
- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             336,345
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
     NUMBER OF        8      SHARED VOTING POWER
       SHARES                0
    BENEFICIALLY
      OWNED BY
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
        EACH          9      SOLE DISPOSITIVE POWER
     REPORTING               349,734
       PERSON
        WITH
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- --------------------- ------ ---------------------------------------------------
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        336,345
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
        (See Instructions) |_|
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        2.6%
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN
- ------- ------------------------------------------------------------------------




- -------------------                                           ------------------
CUSIP No. 502160104                    13D                    Page 3 of 10 Pages
- -------------------                                           ------------------



- ------- ------------------------------------------------------------------------
1       NAME OF REPORTING PERSON  Wynnefield Partners Small Cap Value L.P. I
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        13-3953291
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
        (a) |X| (b) |_|

- ------- ------------------------------------------------------------------------
3       SEC USE ONLY
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
        2(d) or 2(e)

- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        Delaware
- ------- ------------------------------------------------------------------------
- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             161,655
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
     NUMBER OF        8      SHARED VOTING POWER
       SHARES                0
    BENEFICIALLY
      OWNED BY
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
        EACH          9      SOLE DISPOSITIVE POWER
     REPORTING               161,655
       PERSON
        WITH
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- --------------------- ------ ---------------------------------------------------
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        161,655
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
        (See Instructions) |_|
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        1.3%
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN
- ------- ------------------------------------------------------------------------




- -------------------                                           ------------------
CUSIP No. 502160104                    13D                    Page 4 of 10 Pages
- -------------------                                           ------------------



- ------- ------------------------------------------------------------------------
1       NAME OF REPORTING PERSON  Channel Partnership II L.P.
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        22-3215653
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
        (a) |X| (b) |_|
- -------
- ------- ------------------------------------------------------------------------
3       SEC USE ONLY
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
        2(d) or 2(e)

- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        New York
- ------- ------------------------------------------------------------------------
- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             24,000
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
     NUMBER OF        8      SHARED VOTING POWER
       SHARES                0
    BENEFICIALLY
      OWNED BY
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
        EACH          9      SOLE DISPOSITIVE POWER
     REPORTING               24,000
       PERSON
        WITH
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- --------------------- ------ ---------------------------------------------------
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        24,000
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
        (See Instructions) |_|
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        0.2%
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN
- ------- ------------------------------------------------------------------------




- -------------------                                           ------------------
CUSIP No. 502160104                    13D                    Page 5 of 10 Pages
- -------------------                                           ------------------



- ------- ------------------------------------------------------------------------
1       NAME OF REPORTING PERSON  Wynnefield Small Cap Value Offshore Fund Ltd
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
        (a) |X| (b) |_|
- -------
- ------- ------------------------------------------------------------------------
3       SEC USE ONLY
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        WC
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
        2(d) or 2(e)

- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        Cayman Islands
- ------- ------------------------------------------------------------------------
- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             125,700
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
     NUMBER OF        8      SHARED VOTING POWER
       SHARES                0
    BENEFICIALLY
      OWNED BY
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
        EACH          9      SOLE DISPOSITIVE POWER
     REPORTING               125,700
       PERSON
        WITH
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- --------------------- ------ ---------------------------------------------------
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        125,700
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
        (See Instructions) |_|
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        1.0%
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        PN
- ------- ------------------------------------------------------------------------




- -------------------                                           ------------------
CUSIP No. 502160104                    13D                    Page 6 of 10 Pages
- -------------------                                           ------------------



- ------- ------------------------------------------------------------------------
1       NAME OF REPORTING PERSON  Nelson Obus
        S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
        ###-##-####
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
        (a) |X| (b) |_|
- -------
- ------- ------------------------------------------------------------------------
3       SEC USE ONLY
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
4       SOURCE OF FUNDS (See Instructions)
        PF
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
5       CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
        2(d) or 2(e)

- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
6       CITIZENSHIP OR PLACE OF ORGANIZATION
        U.S.A.
- ------- ------------------------------------------------------------------------
- --------------------- ------ ---------------------------------------------------
                      7      SOLE VOTING POWER
                             20,000
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
     NUMBER OF        8      SHARED VOTING POWER
       SHARES                0
    BENEFICIALLY
      OWNED BY
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
        EACH          9      SOLE DISPOSITIVE POWER
     REPORTING               20,000
       PERSON
        WITH
                      ------ ---------------------------------------------------
                      ------ ---------------------------------------------------
                      10     SHARED DISPOSITIVE POWER
                             0
- --------------------- ------ ---------------------------------------------------
- ------- ------------------------------------------------------------------------
11      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
        20,000
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
12      CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
        (See Instructions) |_|
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
13      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
        0.2%
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
14      TYPE OF REPORTING PERSON (See Instructions)
        IN
- ------- ------------------------------------------------------------------------






Item 1.  Security and Issuer.

     This Statement  relates to shares of common stock, par value $.10 per share
(the "Common  Stock"),  of LSB  Industries,  Inc., a Delaware  corporation  (the
"Corporation").  The Corporation's  principal  executive office is located at 16
South Pennsylvania Avenue, Oklahoma City, Oklahoma 73107.

Item 2.  Identity and Background.

     (a) The persons  filing this  statement are  Wynnefield  Partners Small Cap
Value L.P.  I, a limited  partnership  organized  under the laws of the State of
Delaware  ("Wynnefield I"),  Wynnefield Partners Small Cap Value L.P., a limited
partnership  organized  under the laws of the State of Delaware  ("Wynnefield"),
Channel Partnership II L.P., a limited  partnership  organized under the laws of
the State of New York ("Channel"), and Wynnefield Small Cap Offshore Fund Ltd, a
partnership  organized  under  the  laws  of  the  Cayman  Islands  ("Wynnefield
Offshore"),   (Wynnefield  I,  Wynnefield,   Channel  and  Wynnefield  Offshore,
collectively,  the "Reporting Partnerships') and Nelson Obus, an individual (the
"Reporting Individual"). The Reporting Partnerships and the Reporting Individual
are collectively referred to herein as the "Reporting Persons."

     (b) The address of each of the Reporting  Partnerships'  principal business
and principal office, and the Reporting  Individual's  business address,  is One
Penn Plaza, Suite 4720, New York, New York 10119.

     (c) The principal business of each of the Reporting Partnerships is that of
acting as a private  investment firm. The principal  employment of the Reporting
Individual is as President of  Wynnefield  Capital,  Inc., a private  investment
firm whose address is One Penn Plaza, Suite 4720, New York, New York 10119.

     (d) During the last five  years,  none of the  Reporting  Persons  has been
convicted in a criminal proceeding.

     (e) During the last five years,  none of the  Reporting  Persons has been a
party to a civil  proceeding of a judicial or  administrative  body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree  or final  order  enjoining  future  violations  of,  or  prohibiting  or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

Item 3.  Source and Amount of Funds or Other Consideration.

     The source of the $684,493.99  used by Wynnefield I to purchase its 161,655
shares of Common Stock was its working capital.  The source of the $1,416,257.43
used by  Wynnefield  to  purchase  its  336,345  shares of Common  Stock was its
working  capital.  The source of the $91,343.50  used by Channel to purchase its
24,000  shares  of Common  Stock  was its  working  capital.  The  source of the
$515,333.70 used by Wynnefield Offshore to purchase its 125,700 shares of Common
Stock was its working  capital.  The source of the $77,050 used by the Reporting
Individual to purchase his 20,000 shares of Common Stock was personal  funds. No
funds were  borrowed  by any of the  Reporting  Persons in  connection  with its
purchases of Common Stock.

Item 4.  Purpose of Transaction.

     The Reporting Person has acquired its beneficial ownership in the shares of
Common Stock for investment  purposes.  The Reporting  Persons intend to take an
active role as  shareholders  of the Company to raise the interest and awareness
of  other   shareholders   with  respect  to  the  Reporting  Persons  concerns.
Specifically,  among other things, the Reporting Persons are concerned about (i)
the  inability of the  Company's  management to achieve focus as it expressed it
would do in the  Company's  Form 10-K for the year ended  December  31, 1996 and
subsequently and (ii) the proposal by an affiliate of the Company's Chairman and
President to take a preferred voting equity interest in the Company as described
in the Company's Form 10-Q for the quarterly  period ended June 30, 1997,  which
the  Reporting  Persons  believe  would  not be in  the  best  interests  of the
Company's shareholders. The Reporting Persons presently cannot predict the scope
of any actions they may take;  nevertheless,  the  Reporting  Persons will first
seek to  discuss  its  concerns  with  the  Company's  management  and  Board of
Directors.

Item 5.  Interest in Securities of the Issuer.

     (a) According to the  Corporation's  Quarterly  Report on Form 10-Q for the
quarter  ended  June 30,  1997,  as of August  12,  1997,  the  Corporation  had
12,861,081  shares of Common Stock  outstanding.  Wynnefield I is the beneficial
owner of  161,655  shares of Common  Stock,  or 1.3% of the  outstanding  Common
Stock.  Wynnefield is the beneficial owner of 336,345 shares of Common Stock, or
2.6% of the outstanding Common Stock.  Channel is the beneficial owner of 24,000
shares of Common Stock,  or 0.2% of the  outstanding  Common  Stock.  Wynnefield
Offshore is the beneficial  owner of 125,700 shares of Common Stock,  or 1.0% of
the outstanding  Common Stock. The Reporting  Individual is the beneficial owner
of 20,000 shares of Common Stock, or 0.2% of the outstanding  Common Stock.  The
Reporting Persons are the beneficial owner of 667,700 shares of Common Stock, or
5.2% of the outstanding Common Stock.

     (b)  Wynnefield  I has the sole  power to vote,  or to direct  the vote of,
161,655  shares of Common  Stock and the sole power to dispose  of, or to direct
the  disposition  of,  161,655  shares of Common Stock.  Wynnefield has the sole
power to vote, or to direct the vote of,  336,345 shares of Common Stock and the
sole power to dispose of, or to direct the  disposition  of,  336,345  shares of
Common  Stock.  Channel  has the sole  power to vote,  or to direct the vote of,
24,000 shares of Common Stock and the sole power to dispose of, or to direct the
disposition  of,  24,000 shares of Common  Stock.  Wynnefield  Offshore the sole
power to vote, or to direct the vote of,  125,700 shares of Common Stock and the
sole power to dispose of, or to direct the  disposition  of,  125,700  shares of
Common Stock. The Reporting  Individual has the sole power to vote, or to direct
the vote of,  20,000 shares of Common Stock and the sole power to dispose of, or
to direct the  disposition  of,  20,000  shares of Common  Stock.  The Reporting
Persons have the sole power to vote, or to direct the vote of, 667,700 shares of
Common Stock and the sole power to dispose of, or to direct the  disposition of,
667,700 shares of Common Stock.

     (c) The  following  table  describes all  transactions  in the Common Stock
effected during the past 60 days by the Reporting Persons:

                                             No. of
Reporting Person              Date       Shares Purchased      Price per Share
- ----------------              ----       ----------------      ---------------

                                                                 
Wynnefield...............   07/11/97             1,437           4.1850
                            07/22/97            37,227           3.6750
                            07/22/97             6,531           4.0600
                            07/29/97             5,290           4.0225
                            07/30/97             4,000           4.0600
                            08/05/97            10,000           3.9250
                            08/06/97             1,800           3.9606
                            08/06/97             6,200           4.0231
                            08/07/97            10,000           4.0008
                            08/08/97            13,061           4.0400
                            08/18/97             9,143           4.2670
                            08/19/97            10,450           4.2900
                            08/21/97             5,029           4.2900
                            08/22/97             4,376           4.2900
                            08/25/97             2,482           4.2900
                            08/27/97            13,389           4.6873

Wynnefield I.............   07/11/97               763           4.1850
                            07/22/97            19,773           3.6750
                            07/22/97             3,469           4.0600
                            07/29/97             2,810           4.0225
                            08/08/97             6,939           4.0400
                            08/18/97             4,857           4.2670
                            08/19/97             5,550           4.2900
                            08/21/97             2,671           4.2900
                            08/22/97             2,324           4.2900
                            08/25/97             1,318           4.2900
                            08/27/97             7,111           4.6873

Channel..................   07/22/97             3,000           3.6750

Wynnefield Offshore......   07/22/97            40,000           3.6750
                            07/22/97             5,000           4.0600
                            08/07/97             9,000           4.0008
                            08/11/97            10,000           4.0400
                            08/14/97            10,000           4.1475
                            08/26/97             1,700           4.2900
                            08/27/97            10,000           4.6873


All  of  the  foregoing   purchases   were  made  in  the  open  market  through
broker-dealers.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.

     Not applicable.

Item 7. Material to Be Filed as Exhibits.

Exhibit 99.1    --  Joint Filing Agreement
Exhibit 99.2    --  Letter from the  Reporting  Persons to the  Chairman of the
                    Board and President of the Company, dated September 4, 1997.
Exhibit 99.3    --  Letter from the Reporting Persons to the Board of Directors
                    of the Company, dated September 4, 1997







                                    SIGNATURE

     After  reasonable  inquiry and to the best of my  knowledge  and belief,  I
certify that the information  set forth in this statement is true,  complete and
correct.

     Date:  September 4, 1997

                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:   /S/ NELSON OBUS
                                    -------------------------
                                        Nelson Obus
                                      Managing Member

                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:    /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       Managing Member

                            CHANNEL PARTNERSHIP II L.P.


                            By:        /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       General Partner

                            WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                            By: WYNNEFIELD CAPITAL, INC.,
                                as general partner


                                By:    /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                          President


                                       /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus



                             JOINT FILING AGREEMENT


     The Schedule 13D,  relating to the common stock,  par value $.10 per share,
of LSB  Industries,  Inc.,  dated  September  4,  1997,  is filed on  behalf  of
Wynnefield  Partners Small Cap Value L.P.,  Wynnefield  Partners Small Cap Value
L.P. I, Channel  Partnership II L.P.,  Wynnefield  Small Cap Value Offshore Fund
Ltd and Nelson Obus.

     Dated:  September 4, 1997

                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:   /S/ NELSON OBUS
                                    -------------------------
                                        Nelson Obus
                                      Managing Member

                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:    /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       Managing Member

                            CHANNEL PARTNERSHIP II L.P.


                                By:    /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       General Partner

                            WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                            By: WYNNEFIELD CAPITAL, INC.,
                                as general partner


                                By:    /S/ NELSON OBUS
                                     -------------------------
                                         Nelson Obus
                                          President


                                       /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus

                    WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
                           CHANNEL PARTNERSHIP II L.P.
                  WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
                                   NELSON OBUS
                                 ONE PENN PLAZA
                                   SUITE 4720
                            NEW YORK, NEW YORK 10119



                                September 4, 1997


Mr. Jack E. Golsen
Chairman of the Board and President
LSB Industries, Inc.
16 South Pennsylvania Avenue
Oklahoma City, OK 73107

Dear Jack:

     I'm  sorry  you were  unable  to  return my calls or meet with me as we had
discussed  when you were in New York in August.  Nevertheless,  I trust that our
Schedule  13D  filing  will  underscore  the  magnitude  of my  interest  in LSB
Industries and my concern that the independent  shareholders have yet to receive
much value from their investment in the Company.

     In the  Overview of the MD&A  section of your  December  1996 Form 10-K and
subsequently  there is mention of LSB's need to focus on  profitable  businesses
and achieving adequate returns. This is encouraging,  but I feel the actions you
have taken to achieve these goals have been much too tentative.  Specifically, I
believe the Automotive and Industrial  Product  Segments should be promptly sold
or  discontinued  and liquidated in their entirety  because they have lost money
for four consecutive years and lack economies of scale. In addition, off balance
sheet assets such as the bank  building in Oklahoma  City should be  liquidated,
and further speculative  ventures such as the Kestral Aircraft investment should
be  curtailed.  At your  convenience,  I would like to discuss with you my ideas
with respect to how LSB can achieve solid  profitability  and an adequate return
for shareholders going forward. It is unacceptable that 1997 is shaping up to be
the third straight year that LSB has failed to record a profit from operations.

     On a more urgent and serious  note, I must tell you that I was both shocked
and  deeply  disappointed  to read in the June 1997  Form 10-Q of the  Insider's
proposal to infuse $3 million into LSB in return for a preferred  stock interest
which carries a 10% coupon and entitles  holders to three  million  common share
votes.  This is truly an  unconventional  proposal!  Given LSB's $150 million of
long term debt and $65 million of working  capital,  I can only surmise that all
the Insiders are trying to accomplish is to give themselves  enough voting power
to completely ignore the outside shareholders.  I have believed you to be a fair
and honest  individual  who would  never  resort to such a  transparent  ploy to
entrench  you and your family at the helm of LSB.  This  proposal  has caused me
both to  reconsider  my judgment and consult  legal  counsel.  Indeed,  it is so
troubling  to me that I have  written  to the  outside  directors  detailing  my
concerns, and a copy of that letter is attached.

     I have been quite outspoken in this public letter about my feelings towards
the new  preferred  stock  proposal and  encourage  you to  communicate  with me
directly if you feel the conclusions I have reached are off the mark.

                                           Sincerely,

                                                          
                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:   /S/ NELSON OBUS
                                    -------------------------
                                        Nelson Obus
                                      Managing Member

                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:    /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       Managing Member

                            CHANNEL PARTNERSHIP II L.P.


                                 By:   /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       General Partner

                            WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                            By: WYNNEFIELD CAPITAL, INC.,
                                as general partner


                                By:   /S/ NELSON OBUS
                                     -------------------------
                                        Nelson Obus
                                         President


                                       /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus

                    WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
                   WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
                           CHANNEL PARTNERSHIP II L.P.
                  WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
                                   NELSON OBUS
                                 ONE PENN PLAZA
                                   SUITE 4720
                            NEW YORK, NEW YORK 10119



                                September 4, 1997


Board of Directors
LSB Industries, Inc.
c/o Corporate Secretary
16 South Pennsylvania Avenue
Oklahoma City, OK 73107

Gentlemen:

     As you probably  know,  investment  partnerships  in which I possess voting
control  recently have acquired 5.2% of LSB Industries and have filed a Schedule
13D. I am President of Wynnefield Capital,  Inc., a corporation formed to invest
in publicly  traded  small  capitalization  securities  which are believed to be
undervalued.  Wynnefield  currently  has over  $100  million  under  management.
Earlier  in my  Wall  Street  career  I  worked  for  almost  a  decade  in  the
institutional  sales department of Lazard Freres in roles including the Director
of Research.  My investment  background  includes  almost 40 years of experience
analyzing and investing in small cap value stocks.

     The purpose of this letter is to share with you my concerns  regarding  the
SBL Corporation's  proposal to purchase  preferred stock from LSB as outlined in
the second quarter  Form-10Q.  This is one of the most  unconventional  offers I
have come upon in my years as an investor.  Given the  existence of $150 million
in long term debt and $65 million of working  capital,  it is almost  impossible
for me to  understand  how an  infusion  of merely $3 million  would  materially
improve  LSB's  balance  sheet.  The offer  appears  to be  nothing  more than a
transparent   effort  by  insiders  to  entrench   themselves   and  escape  all
accountability  for their inability to generate  profits or enhance  shareholder
value.

     As you know, it is your duty to perform  careful due diligence in regard to
SBL's proposal if you expect to rely on the business  judgment rule with respect
to any decision made  regarding  the proposal.  If for some reason you determine
that a small cash  infusion  would be  meaningfully  helpful to the  Company,  I
insist  that  Wynnefield  be given the  opportunity  to present  an  alternative
proposal to the Board.  I can assure you that I am prepared and have  sufficient
resources to offer the Company  significantly better terms than those offered by
SBL.

     The SBL  proposal  has  served to give me  second  thoughts  regarding  the
character and motives of the Chairman of LSB. I have articulated  these concerns
quite  bluntly in a letter to Mr.  Golsen,  which I have attached to my Schedule
13D filing.  I urge you to read this filing and in your obligation  generally to
generate shareholder value.

     As Directors,  and particularly  with respect to independent  Directors,  I
expect you to represent  non-affiliated  shareholders like myself in considering
the SBL proposal and in your obligation generally to generate shareholder value.







     I look forward to hearing from you directly in regard to this matter.

                            
                                           Sincerely,

                                                          
                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:   /S/ NELSON OBUS
                                    -------------------------
                                        Nelson Obus
                                      Managing Member

                            WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I

                            By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
                                as general partner


                                By:    /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       Managing Member

                            CHANNEL PARTNERSHIP II L.P.


                                 By:   /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus
                                       General Partner

                            WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD

                            By: WYNNEFIELD CAPITAL, INC.,
                                as general partner


                                By:   /S/ NELSON OBUS
                                     -------------------------
                                        Nelson Obus
                                         President


                                       /S/ NELSON OBUS
                                    -------------------------
                                         Nelson Obus