ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

1. GENERAL

CERTAIN DEFINITIONS

ÌýÌýÌýÌýÌýÌýÌýÌýFor convenience in this report, the terms "Company," "our," "us" or "we" may be used to refer to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. In this report, "ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International" refers to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ InternationalÌýLLC (our 100% owned subsidiary) and, unless the context otherwise requires, its subsidiaries; "HPS" refers to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Polyurethanes ShanghaiÌýLtd. (our consolidated splitting joint venture with Shanghai Chlor-Alkali Chemical Company,ÌýLtd); and "SLIC" refers to Shanghai Liengheng Isocyanate Company (our unconsolidated manufacturing joint venture with BASF AG and three Chinese chemical companies).

ÌýÌýÌýÌýÌýÌýÌýÌýIn this report, we may use, without definition, the common names of competitors or other industry participants. We may also use the common names or abbreviations for certain chemicals or products.

INTERIM FINANCIAL STATEMENTS

ÌýÌýÌýÌýÌýÌýÌýÌýOur interim condensed consolidated financial statements (unaudited) and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International's interim condensed consolidated financial statements (unaudited) were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP" or "U.S.ÌýGAAP") and in management's opinion reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of results of operations, financial position and cash flows for the periods presented. Results for interim periods are not necessarily indicative of those to be expected for the full year. These condensed consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Annual Report on FormÌý10-K for the year ended DecemberÌý31, 2010 for our Company and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International.

DESCRIPTION OF BUSINESS

ÌýÌýÌýÌýÌýÌýÌýÌýWe are a global manufacturer of differentiated organic chemical products and of inorganic chemical products. Our products comprise a broad range of chemicals and formulations, which we market globally to a diversified group of consumer and industrial customers. Our products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and nondurable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries. We are a leading global producer in many of our key product lines, including MDI, amines, surfactants, maleic anhydride, epoxy- based polymer formulations, textile chemicals, dyes and titanium dioxide.

ÌýÌýÌýÌýÌýÌýÌýÌýWe operate in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments. Our Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and our Pigments segment produces inorganic chemical products.

COMPANY

ÌýÌýÌýÌýÌýÌýÌýÌýOur Company, a Delaware corporation, was formed in 2004 to hold the ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ businesses. JonÌýM. ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ founded the predecessor to our Company in the early 1970s as a small packaging company. Since then, we have grown through a series of acquisitions and now own a global portfolio of businesses.

ÌýÌýÌýÌýÌýÌýÌýÌýWe operate all of our businesses through ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International, our 100% owned subsidiary. ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International is a Delaware limited liability company.

HUNTSMAN CORPORATION AND HUNTSMAN INTERNATIONAL FINANCIAL STATEMENTS

ÌýÌýÌýÌýÌýÌýÌýÌýExcept where otherwise indicated, these notes relate to the consolidated financial statements for both our Company and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International. The differences between our financial statements and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International's financial statements relate primarily to the following:

• Éù

  purchase accounting recorded at our Company for the 2003 step-acquisition of ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International HoldingsÌýLLC, the former parent company of ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International that was merged into ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International in 2005;
  
  

  Éù

  the different capital structures;
  
  

  Éù

  expenses associated with our terminated merger with a subsidiary of Hexion (the "Terminated Merger"); and
  
  

  Éù

  a note payable from ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International to us.

PRINCIPLES OF CONSOLIDATION

ÌýÌýÌýÌýÌýÌýÌýÌýOur condensed consolidated financial statements (unaudited) include the accounts of our wholly-owned and majority-owned subsidiaries and any variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated, except for intercompany sales between continuing and discontinued operations.

USE OF ESTIMATES

ÌýÌýÌýÌýÌýÌýÌýÌýThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

RECLASSIFICATIONS

ÌýÌýÌýÌýÌýÌýÌýÌýCertain amounts in the consolidated financial statements for prior periods have been reclassified to conform with the current presentation. Beginning in 2011, we reclassified bank accepted drafts in China with maturities greater than 90Ìýdays from receipt from accounts receivable to other current assets.

RECENT DEVELOPMENTS

Sale of Stereolithography Resin and Digitalis® Machine Manufacturing Businesses

ÌýÌýÌýÌýÌýÌýÌýÌýOn NovemberÌý1, 2011 we announced that our Advanced Materials division completed the sale of its stereolithography resin and Digitalis® machine manufacturing businesses to 3D Systems Corporation for $41Ìýmillion in cash. See "NoteÌý21. Subsequent Events."

REDEMPTION OF SENIOR SUBORDINATED NOTES

ÌýÌýÌýÌýÌýÌýÌýÌýOn NovemberÌý1, 2011, ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International provided notice that it will redeem in full the remaining €68Ìýmillion (approximately $93Ìýmillion) of its 6.875% senior subordinated notes due 2013. See "NoteÌý21. Subsequent Events."

Textile Effects Restructuring Program

ÌýÌýÌýÌýÌýÌýÌýÌýOn SeptemberÌý27, 2011, we announced plans to implement a significant restructuring of our Textile Effects business. See "NoteÌý6. Restructuring, Impairment and Plant Closing Costs."

Share Repurchase Program

ÌýÌýÌýÌýÌýÌýÌýÌýEffective AugustÌý5, 2011, our Board of Directors authorized our Company to repurchase up to $100Ìýmillion in shares of our common stock. See "NoteÌý11. ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation Stockholders' Equity—Share Repurchase Program."