NEWTOWN SQUARE, Pa., Oct. 10 /PRNewswire/ -- ARCO Chemical Company
(NYSE: RCM) announced today that it has reached an agreement to purchase Olin
Corporation's (NYSE: OLN) toluene diisocyanate (TDI) and aliphatic
diisocyanate (ADI) businesses for $565 million.  Revenues from Olin's TDI and
ADI operations for the 12 months ended June 30, 1996 were $298 million.  The
acquisition of these operations, which produce key ingredients for urethane
foams, industrial coatings, adhesives and sealants, complements the company's
leading worldwide position in propylene oxide and its derivative, polyether
polyols.
    As part of the transaction, ARCO Chemical will acquire Olin's TDI and ADI
facilities at Lake Charles, Louisiana, and certain other assets including
patents and process technologies.  These plants employ approximately 430 in
manufacturing jobs and 50 in process development.
    Commenting on the Olin acquisition, Alan R. Hirsig, President and Chief
Executive Officer of ARCO Chemical, said, "This acquisition represents an
important strategic step forward for our company.  For some time, we have been
focused on a strategy to increase the value of our existing PO and derivatives
businesses including expanding our presence in the urethane markets.  We
believe this acquisition will complement our existing TDI business, and
thereby strengthen our urethanes position."
    "This transaction is beneficial to the company in many respects,"
Mr. Hirsig added.  "In addition to the immediate and positive effects on sales
and earnings, ARCO Chemical receives a low-cost U.S. manufacturing facility,
our first significant TDI sales in the North American market, and a strong
customer base in Asia and Latin America, as well as advanced technologies and
technical service capabilities.  These factors can only strengthen our market
position in developing regions, such as Asia and Latin America, where we
continue to see an ever growing demand for urethane products."
    ARCO Chemical entered the isocyanates market in 1995 with the acquisition
of Rhone-Poulenc's TDI technology and European-based business.  With the
addition of the Olin assets, ARCO Chemical will become the number two marketer
of TDI in the U.S. and, in combination with its European business, will have
19 percent of the world supply.
    TDI is used in the manufacture of urethane for flexible and rigid foam
applications ranging from furniture, bedding and carpet underlay to
transportation, packaging and insulation.  ADI is used in coatings,
elastomers, adhesives and sealants.
    Mr. Hirsig continued, "We are also pleased to be buying the ADI business.
These products will complement our existing specialty polyol business as well
as our ARCOSOLV(R) and BDO family of products.  We expect this part of the
acquisition to support our growth in the elastomer, sealant, adhesive and
industrial coatings markets."
    The purchase has received approval from the Boards of Directors of both
companies and, upon completion of regulatory approval, is expected to close in
late 1996.  The acquisition will be funded with cash on hand and short-term
debt.
    Olin Corporation, with headquarters in Norwalk, Connecticut, is a
diversified producer and marketer of high performance chemicals,
microelectronic materials, metals, sporting ammunition and defense and
aerospace products.
    ARCO Chemical Company is a leading worldwide manufacturer and marketer of
intermediate chemicals and specialty products used in a broad range of
consumer and industrial products.

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