News Release:

Vi-Chem Signs Cross-Licensing Agreement with Belgian Manufacturer

Company Will Introduce Successful European, Engineered Plastic Compounds
to the North American Automotive Markets

Grand Rapids, Michigan, May 28, 2003

Vi-Chem Corp. today announced that it has signed a licensing agreement with Limburgse Vinyl Maatschappij (LVM), a Belgian manufacturer and affiliate of Tessenderlo Group, to introduce its successful European, engineered slush molding products to the North American automotive market.

The Grand Rapids, Mich. manufacturer of engineered vinyl and thermoplastic elastomer compounds and alloys said it has signed a licensing agreement with LVM, a leading manufacturer of PVC resin and engineered vinyl compounds based in Tessenderlo, Belgium, to manufacture and sell high-performance engineered slush PVC compounds, based on LVM's successful Marvyflo® technology. The cost-effective Marvyflo compounds, which are already in production with a variety of European automakers, offer improved performance characteristics for applications such as instrument panels and door panels. Vi-Chem will market and produce these compounds as part of its Interion® product line.

In a reciprocal arrangement, Vi-Chem has licensed its engineered automotive vinyl compounds and TPEs, including its Flexovin™, SatinFlo™, Flexall™ and Interion® product lines, to LVM for production and marketing in Europe.

"We are pleased to be able to partner with LVM to introduce this high-performance plastic compound line to OEMs and their suppliers in the North American market," said Leonard Slott, vice president and general manager of Vi-Chem. "For many years, PVC has been the standard for instrument panel construction in North America due to its cost effectiveness, appearance and feel.

"Yet the current slush molding products available in the North America do not have the long-term heat performance and cold temperature capability demanded by OEMs looking to improve performance and extend the life of their vehicles. LVM's engineered slush molding compounds overcome these issues through enhanced long-term stability and cold temperature flexibility."

Vi-Chem, which has been supplying the automotive industry with pre-colored, engineered vinyl and TPE compounds for two decades, plans to begin production of the new compounds in the third quarter of 2003.

"European automakers have embraced this new high-performance technology, which is rapidly becoming the preferred material for IPs for new vehicles in Europe," explained William Greer, sales and marketing manager of Vi-Chem. "This is partly due to the fact that the slush molding process allows more styling flexibility over sheet forming processes, and PVC is much more cost effective and processible than olefinic and urethane products."

About Vi-Chem
Vi-Chem Corp. is a leading producer of thermoplastic elastomers and vinyl compounds for the automotive, office furniture, building and construction, and other industries. Additional technical information on Vi-Chem is available at www.vichem.com or by contacting Vi-Chem's customer service department at either custserv@vichem.com or (800) 477.8501.

About LVM
Tessenderlo Group's affiliate LVM is a leading producer of PVC resins and Vinyl Chloride Monomer. In the automotive industry, LVM is producer of dry-blends for slush molding of instrument and door panels for the car industry. Information on Tessenderlo Group and LVM is available at www.tessenderlogroup.com or by contacting our commercial department at sales.international@lvm.be

For Further Information Contact William K. Greer at Vi-Chem: wgreer@vichem.com

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