Government Accountability Office to Sustain Arch Chemicals' Protest of Hydrazine Propellant Contract Award

Business Wire, July 26, 2004

NORWALK, Conn. -- Arch Chemicals, Inc. (NYSE: ARJ) announced that the U.S. Government Accountability Office (GAO) informed Arch and the Defense Energy Support Center (DESC) that the GAO will sustain Arch's formal protest of the DESC's recent decision to award the government's next 10-year hydrazine propellant supply contract to a competing firm. The contract involves supplying propellants for use by NASA in the Space Shuttle and by the Air Force in government satellites and launch rockets.

As a result of the GAO's decision, the DESC has notified the Company that it has taken corrective action by re-opening the bidding process. The closing date for initial offers has been extended until September 9, 2004, and the DESC anticipates completing its contract-award decision shortly thereafter.

Arch has served as the sole U.S. supplier of hydrazine propellants to the U.S. government for more than 50 years. Its prior long-term contract with the government expired on April 30, 2004.

Headquartered in Norwalk, Connecticut, Arch Chemicals, Inc. is a global specialty chemicals company with more than $1 billion in annual sales. Arch and its subsidiaries have leadership positions in three business segments -- Treatment Products, Microelectronic Materials and Performance Products -- and they serve leading customers in these markets with forward-looking solutions to meet their chemical needs. Together with its subsidiaries, Arch has approximately 3,300 employees and manufacturing and customer-support facilities in North and South America, Europe, Asia and Africa.