1089748--3/1/2007--Huntsman

related topics

{cost, regulation, environmental}

{control, financial, internal}

{debt, indebtedness, cash}

{acquisition, growth, future}

{capital, credit, financial}

{operation, international, foreign}

{operation, natural, condition}

{regulation, change, law}

{competitive, industry, competition}

{property, intellectual, protect}

{stock, price, operating}

{provision, law, control}

{personnel, key, retain}

{condition, economic, financial}

{loss, insurance, financial}

Future acquisitions, partnerships and joint ventures, as well as our recent Textile Effects Acquisition, may require significant resources and/or result in unanticipated adverse consequences that could have a material adverse effect on our business, results of operations and financial condition. Significant price volatility or interruptions in supply of our raw materials may result in increased costs that we may be unable to pass on to our customers, which could reduce our profitability. Demand for many of our products is cyclical, and we may experience prolonged depressed market conditions for such products. We are subject to the risk of loss resulting from nonpayment and/or nonperformance by our customers. Natural or other disasters could disrupt our business and result in loss of revenue or in higher expenses. We have a history of losses and may incur losses in the future. Our available cash and access to additional capital may be limited by our significant leverage, which could restrict our ability to grow our businesses. If our subsidiaries do not make sufficient distributions to us, then we will not be able to make payment on our debts. A downgrade in the ratings of the securities of our Company or our subsidiaries could result in increased interest and other financial expenses related to future borrowings of our Company or our subsidiaries and could restrict our access to additional capital or trade credit. Existing or future litigation or legislative initiatives restricting the use of MTBE in gasoline may subject us or our products to environmental liability, materially reduce our sales and/or materially increase our costs. Our results of operations may be adversely affected by fluctuations in currency exchange rates and international business risks. The industries in which we compete are highly competitive, and we may not be able to compete effectively with our competitors that have greater financial resources, which could have a material adverse effect on our business, results of operations and financial condition. Our operations involve risks that may increase our operating costs, which could reduce our profitability. We are subject to many environmental and safety regulations that may result in unanticipated costs or liabilities, which could reduce our profitability. Our business is dependent on our intellectual property. If our patents are declared invalid or our trade secrets become known to our competitors, our ability to compete may be adversely affected. Loss of key members of our management could disrupt our business. Terrorist attacks, such as the attacks that occurred on September 11, 2001, the continuing military action in Iraq, general instability in various OPEC member and other energy-producing nations, the threat of other attacks or acts of war in the U.S. and abroad and increased security regulations related to our industry could adversely affect our business. We are indirectly controlled by the Huntsman family and MatlinPatterson, whose interests may conflict with those of our Company or our other stockholders, and other stockholders voting power may be limited. HMP Equity Trust s controlling position and provisions contained in our certificate of incorporation and bylaws could discourage a takeover attempt, which may reduce or eliminate the likelihood of a change of control transaction and, therefore, your ability to sell your shares at a premium. Our internal control over financial reporting could be adversely affected by a material weakness in our internal controls.

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1089748--3/1/2007--Huntsman_CORP