ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

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1. GENERAL

DEFINITIONS

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýFor convenience in this report, the terms "Company," "our" or "we" may be used to refer to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation and, unless the context otherwise requires, its subsidiaries and predecessors. Any references to our "Company" "we" "us" or "our" as of a date prior to OctoberÌý19, 2004 (the date of our Company's formation) are to ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Holdings,ÌýLLC and its subsidiaries (including their respective 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 and three Chinese chemical companies).

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýIn 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.

DESCRIPTION OF BUSINESS

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýWe 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, personal care and hygiene, durable and non-durable 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, titanium dioxide and color pigments.

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýWe operate in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects and Pigments and Additives. Our Polyurethanes, Performance Products, Advanced Materials and Textile Effects segments produce differentiated organic chemical products and our Pigments and Additives segment produces inorganic chemical products. In a series of transactions beginning in 2006, we sold or shutdown substantially all of our Australian styrenics operations and our North American polymers and base chemicals operations. We report the results of these businesses as discontinued operations.

COMPANY

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

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýCurrently, we 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 and was formed in 1999.

HUNTSMAN CORPORATION AND HUNTSMAN INTERNATIONAL FINANCIAL STATEMENTS

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýExcept 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 consolidated financial statements and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International's consolidated financial statements relate primarily to the following:

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