HUN Huntsman Corporation

THE WOODLANDS, Texas, May 19 /PRNewswire-FirstCall/ -- Peter R. Huntsman, President and CEO of Huntsman Corporation (NYSE:HUN), today questioned how officials at the Natural Gas Supply Association can continue to be "hyper-pessimistic" about the nation's natural gas supplies in the face of record inventories and decreasing U.S. consumption. An Associated Press article today referenced U.S. Energy Department data showing natural gas inventories at "53% above the five year average for this time of year." The article also cited a Houston-based energy consultant's comment that "by fall the nation's storage capacity may not be sufficient to hold all the available supply, forcing some producers to cap wells." "Yet the head of the NGSA 'warns there is no guarantee that the nation's supply cushion will look so comfortable by the end of summer,'" said Mr. Huntsman. "It is incredible to me that trade associations such as the Natural Gas Supply Association cannot or will not realize how their unsubstantiated pronouncements continue to feed the gas trading frenzy and force up the price that consumers must pay for natural gas." Mr. Huntsman noted that even though natural gas is selling for less than $6/mmbtu today, February futures on the New York Mercantile Exchange are almost $11/mmbtu. "Month after month, year after year these trade associations issue news releases warning of supply shortages. Traders force up the price but the shortages never materialize. Two powerful hurricanes last year did very little to reduce bountiful gas inventories. I also find it incredible that so many people continue to buy in to a supposed 'natural gas supply/demand crisis.'" Mr. Huntsman pointed to Energy Information Association statistics that show not only record inventories but also decreasing consumption. "Our company, which is a major natural gas consumer, is not opposed to increasing the availability of natural gas, including creating more storage capacity," Mr. Huntsman said. "But for at least three years we have challenged anyone to show us how continued high inventories, steady production and decreasing consumption can equal a supply/demand crisis. No one -- in government, industry or trade associations -- has been able to do it. They all just continue to believe it, or at least to tout it. The fact is a supply/demand crisis does not exist. "Our country has enough energy challenges without perpetuating this natural gas supply/demand myth at consumers' expense," he concluded. Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman today has 11,300 employees, 57 operations in 22 countries and had 2005 revenues of $13 billion. Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. Accordingly, there can be no assurance that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. DATASOURCE: Huntsman Corporation CONTACT: Don Olsen of Huntsman Corporation, +1-281-513-8136

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