LANXESS Solutions US (CEMJQ) 8-K Results of Operations and Financial Condition

NEWS

CONTACTS:
Investors: Media:	William Kuser Mary Ann Dunnell	(203) 573-2213 (203) 573-3034

CROMPTON REPORTS FIRST QUARTER RESULTS;
RESULTS FOR THE POLYMER ADDITIVES AND POLYMERS SEGMENTS SHOW DRAMATIC
IMPROVEMENT OVER PRIOR YEAR

MIDDLEBURY, CT - April 26, 2005 - Crompton Corporation (NYSE: CK) reported today that
net earnings for the first quarter of 2005 were $20.4 million, or $0.17 per diluted share, which includes earnings from discontinued operations of $2.2 million, or $0.02 per share, related to the company's Refined Products business that it expects to sell during the second quarter of 2005. Net earnings from continuing operations for the quarter were $18.2 million, or $0.15 per diluted share, which includes pre-tax charges of $3.2 million for antitrust costs and $0.2 million for facility closures, severance and related costs. Operating profit for Crop Protection for the first quarter of 2004 included $9.6 million of equity income from the Company's Gustafson joint venture, which is not reflected in 2005 first quarter results as the joint venture was divested at the end of last year's first quarter.

First quarter net sales of $589.7 million were 6 percent above prior year net sales of $555.5 million. The increase was the result of a 13 percent increase in selling prices and a 2 percent increase due to favorable foreign currency, partially offset by a 9 percent decrease in volume.

The tax rate from continuing operations for the first quarter was 44 percent, owing largely to a $3.8 million increase in the deferred tax valuation allowance. The company expects its effective tax rate for the year to be approximately 35 percent.

The diluted weighted average shares outstanding for the first quarter of 2005 were 118,944,995 versus 114,835,089 for the first quarter of 2004.

"As promised, we continued to accelerate pricing and were able to deliver improved earnings despite the selective loss of somevolume and slightly lower than expected results in our Crop Protection business," said Robert L. Wood, chairman, president and chief executive officer. "While there is more to be done, we continue to emphasize to customers the value-in-use (low component cost compared to indispensable functional value) of the products we sell, as well as the necessity of better returns to support future investment.

"The good first quarter results and improved gross margins are a result of:

1.A better understanding of the competitive environment and the value of our products.
2.A tough-minded discipline with respect to pricing, which caused us to selectively give up
       volume to competitors who are still focused on price protection and share.
3.A disciplined approach to cost reduction and allocation of resources.
4.A strategic and selective raw material pre-buying program.
5.More people on our team believing we can, in fact,win with our strategy.

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"We are far from declaring victory, as we look forward to the balance of the year. Going forward, we expect to reap continued benefits from the restructuring and cost reduction initiatives we undertook in 2004. We also expect continued leverage in price and improved volume. These positive factors will be offset to some degree by higher raw material prices in the second quarter that will challenge margins. We cannot confidently see much beyond the second quarter. While April looks to be in-line with our expectations, we have to be vigilant and disciplined as the year progresses."

"We are focused on delivering solid results from our existing portfolio while undertaking thorough integration planning to unlock the potential of the new company we are building," Wood concluded.

2005 Annual Meeting of Stockholders:
The Company's 2005 Annual Meeting of Stockholders will be held on April 26, 2005 at 11:15 a.m. EDT, in listen-only mode. Interested parties are asked to dial in approximately 10 minutes prior to the start time at (612) 332-0820. Replay of the call will be available for two weeks starting at 2:45 p.m. on April 26. To access the replay, call (320) 365-3844 and enter access code 778079.

First Quarter Earnings Q&A Teleconference:
The Company's first quarter earnings conference call will be held on April 26, 2005 at 2:00 p.m. EDT. The Company will post informational slides shortly before the call, which include analysis of segment results, to the Investor Relations section of its Web site (www.cromptoncorp.com). Interested parties are asked to dial in approximately 10 minutes prior to the start time at (612) 332-1213. Replay of the call will be available for two weeks starting at 5:30 p.m. on April 26. To access the replay, call (320) 365-3844 and enter access code 778081.

Crompton Corporation, with 2004 sales of $2.5 billion, is a producer and marketer of specialty chemicals and polymer products and equipment. Additional information concerning Crompton Corporation is available atwww.cromptoncorp.com.

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Forward-Looking Statements
Certain statements made in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, general economic conditions, the outcome and timing of antitrust investigations and related civil lawsuits to which the Company is subject, the ability to obtain selling price increases, pension and other post-retirement benefit plan assumptions, energy and raw material prices and availability, production capacity, changes in interest rates and foreign currency exchange rates, changes in technology, market demand and customer requirements, the enactment of more stringent environmental laws and regulations, the ability to realize expected cost savings under the Company's cost reduction initiatives, the amount of any additional earn-out payments from GE, the ability to reduce the Company's debt levels, the risk that Great Lakes and the Company's businesses will not be integrated successfully, the risk that the cost savings, cash flow synergies and other synergies from the merger transaction may not be fully realized or take longer to realize than anticipated, disruption from the merger transaction may make it more difficult to maintain relationships with employees, customers or suppliers, competition and its effect on

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pricing, third party relationships and revenues, the ability to obtain regulatory approval of the merger transaction on the proposed terms and schedule, the failure of the stockholders of either the Company or Great Lakes to approve the merger transaction, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These statements are based on the Company's estimates and assumptions and on currently available information. The forward-looking statements include information concerning the Company's possible or assumed future results of operations, and the Company's actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date of this release and such information will not necessarily be updated by the Company.

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CROMPTON CORPORATION
Consolidated Statements of Earnings
First quarter ended 2005 and 2004
(In thousands, except per share data)
			First Quarter
			2005		2004
Net sales		$	589,730	$	555,509
Cost of products sold*			418,669		430,988
Selling, general and administrative*			61,271		71,321
Depreciation and amortization			30,126		28,880
Research and development			10,511		11,399
Equity income			(88)		(9,627)
Facility closures, severance and related costs			158		2,411
Antitrust costs			3,166		4,053
Operating profit			65,917		16,084
Interest expense			24,406		17,925
Other (income) expense, net			8,799		(92,754)
Earnings from continuing operations before
income taxes			32,712		90,913
Income tax expense			14,483		30,120
Earnings from continuing operations			18,229		60,793
Earnings from discontinued operations			2,206		160
Net earnings		$	20,435	$	60,953
Basic earnings per common share:
	Earnings from continuing operations	$	0.16	$	0.53
	Earnings from discontinued operations		0.02		-
	Net earnings	$	0.18	$	0.53
Diluted earnings per common share:
	Earnings from continuing operations	$	0.15	$	0.53
	Earnings from discontinued operations		0.02		-
	Net earnings	$	0.17	$	0.53
	Weighted average shares outstanding - basic		116,760		114,525
	Weighted average shares outstanding - diluted		118,945		114,835
*	Reflects the reclassification of shipping costs of $15.7 million and $16.7 million for the first quarter of 2005 and 2004, respectively, from selling, general and administrative to cost of products sold.

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CROMPTON CORPORATION
Consolidated Balance Sheets
March 31, 2005 and December 31, 2004
(In thousands of dollars)
			March 31, 2005		December 31, 2004
ASSETS
	CURRENT ASSETS
	Cash and cash equivalents	$	118,411	$	158,700
	Accounts receivable		267,106		242,435
	Inventories		404,093		383,635
	Other current assets		153,254		165,554
	Assets held for sale *		95,877		97,252
	Total current assets		1,038,741		1,047,576
	NON-CURRENT ASSETS
	Property, plant and equipment		674,137		694,925
	Cost in excess of acquired net assets		401,288		407,975
	Other assets		525,823		528,233
		$	2,639,989	$	2,678,709
LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES
	Short-term borrowings	$	14,137	$	4,294
	Accounts payable		207,593		231,473
	Accrued expenses		307,460		338,709
	Income taxes payable		99,916		107,686
	Other current liabilities		21,265		23,555
	Liabilities held for sale *		3,866		3,452
	Total current liabilities		654,237		709,169
	NON-CURRENT LIABILITIES
	Long-term debt		877,927		862,251
	Pension and post-retirement health care liabilities		557,595		566,759
	Other liabilities		214,951		211,550
	STOCKHOLDERS' EQUITY
	Common stock		1,192		1,192
	Additional paid-in capital		1,033,291		1,032,282
	Accumulated deficit		(633,051)		(647,678)
	Accumulated other comprehensive loss		(49,651)		(22,372)
	Treasury stock at cost		(16,502)		(34,444)
	Total stockholders' equity		335,279		328,980
		$	2,639,989	$	2,678,709
*	Represents the assets to be sold and liabilities to be assigned related to the Refined Products business, which has been classified as a discontinued operation.

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CROMPTON CORPORATION
Consolidated Statements of Cash Flows
First quarter ended 2005 and 2004
(In thousands of dollars)
				First Quarter
Increase (decrease) to cash				2005		2004
CASH FLOWS FROM OPERATING ACTIVITIES
	Net earnings		$	20,435	$	60,953
	Adjustments to reconcile net earnings to net
	cash used in operations:
		Gain on sale of Gustafson joint venture		-		(90,938)
		Depreciation and amortization		32,135		30,854
		Equity income		(88)		(9,627)
		Changes in assets and liabilities, net:
		Accounts receivable		(40,606)		(42,642)
		Accounts receivable - securitization		1,596		(20,333)
		Inventories		(30,168)		(4,475)
		Accounts payable		(20,490)		(1,807)
		Other		(32,834)		15,768
	Net cash used in operations			(70,020)		(62,247)
CASH FLOWS FROM INVESTING ACTIVITIES
	Net proceeds from divestments			11,797		129,516
	Capital expenditures			(13,978)		(16,640)
	Other investing activities			(28)		391
	Net cash (used in) provided by investing activities			(2,209)		113,267
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from (payments on) domestic credit facility			25,000		(49,400)
	(Payments on) proceeds from short-term borrowings			(162)		727
	Dividends paid			(5,808)		(5,727)
	Other financing activities			14,324		171
	Net cash provided by (used in) financing activities			33,354		(54,229)
CASH
	Effect of exchange rates on cash			(1,414)		(138)
	Change in cash			(40,289)		(3,347)
	Cash at beginning of period			158,700		39,213
	Cash at end of period		$	118,411	$	35,866
Note: The Consolidated Statements of Cash Flows have not been adjusted to reflect the          discontinued operations and thus include the cash flows of the Refined Products business.

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CROMPTON CORPORATION
Segment Sales and Operating Profit
First quarter ended 2005 and 2004
(In thousands of dollars)
			First Quarter
			2005		2004
NET SALES
Polymer Products
	Polymer Additives	$	381,369	$	363,343
	Polymers		94,536		81,212
	Polymer Processing Equipment		40,393		38,428
	Eliminations		(4,481)		(3,948)
			511,817		479,035
Specialty Products
	Crop Protection		77,913		76,474
			77,913		76,474
	Total net sales	$	589,730	$	555,509
OPERATING PROFIT
Polymer Products
	Polymer Additives	$	46,394	$	8,948
	Polymers		20,521		10,195
	Polymer Processing Equipment		(470)		(1,764)
			66,445		17,379
Specialty Products
	Crop Protection		19,497		28,441
			19,497		28,441
General corporate expense, including amortization			(16,701)		(20,698)
Unabsorbed overhead expense from
discontinued operations			-		(2,574)
Facility closures, severance and
related costs			(158)		(2,411)
Antitrust costs			(3,166)		(4,053)
	Total operating profit	$	65,917	$	16,084

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CROMPTON CORPORATION	SUPPLEMENTARY SCHEDULE
Major Factors Affecting Operating Results
First quarter ended 2005 versus 2004
(In millions of dollars)
The following table summarizes the major factors contributing to the first quarter changes in operating results versus the prior year:
	First Quarter
		Pre-tax
	Net	Earnings
	Sales	(Loss)
2004	$ 555.5	$ 90.9	*
2004 Facility closures, severance and related costs	-	2.4
2004 Antitrust costs	-	4.1
2004 Supplemental executive retirement costs	-	5.9
2004 Divestment gains, primarily Gustafson	-	(94.6)
	555.5	8.7
Higher selling prices	74.0	74.0
Reduced unit volume/mix	(49.6)	(7.8)
Foreign currency impact	9.8	0.1
Cost savings	-	18.5
Higher raw materials/energy costs	-	(40.6)
Decrease in Gustafson equity income	-	(9.6)
Lower costs (legal, environmental)	-	3.6
Higher incentive expense	-	(3.3)
Higher interest expense	-	(6.5)
Other	-	(1.0)
	589.7	36.1
2005 Facility closures, severance and related costs	-	(0.2)
2005 Antitrust costs	-	(3.2)
2005	$ 589.7	$ 32.7	*
* Represents the pre-tax earnings from continuing operations.