NEWTOWN SQUARE, Pa., Oct. 6 /PRNewswire/ -- ARCO Chemical (NYSE: RCM)
announced today that it will take a pretax charge of $175 million
($116 million after tax; $1.20 per share) in the third quarter 1997 to cover
the costs associated with its previously announced restructuring program and
other actions.  Included in the charge are costs related to work force
reductions, facility closures, and asset write downs.
    ARCO Chemical's restructuring program, initiated in June 1997, will
result in the phased elimination of between 800 and 1,100 employee and
contractor positions in the company's worldwide operations.
    Alan R. Hirsig, Chief Executive Officer, noted that ARCO Chemical's
restructuring plan, which will be substantially in place by the end of 1998,
is on track to achieve its goal of reducing the company's controllable costs
by 20 percent, or $150 million annually.
    "We remain dedicated to increasing shareholder value.  The steps we are
taking are designed to strengthen our competitiveness and increase
profitability.  Our restructuring program, along with other shareholder value
initiatives, including significant stock ownership requirements for our
executives and directors, are clearly focused on one objective: to build value
for our shareholders," Hirsig said.
    ARCO Chemical is a leading worldwide manufacturer and marketer of PO and
derivatives and other intermediate chemicals.  Its products are used in a wide
range of consumer and industrial goods, including automotive components, home
furnishings, paints and coatings, plastics, engine coolants, and reformulated
gasoline.

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