Cytec Provides Impact of Hurricane Katrina; Update on Hurricane Rita and Boeing Strike

Business Wire, Sept 23, 2005

WEST PATERSON, N.J. -- Cytec Industries Inc. (NYSE:CYT) advised today that the direct impact of Hurricane Katrina is expected to reduce pretax earnings in the range of $9 million to $10 million ($0.14 to $0.16 per diluted share). This includes lost production at the Company's Fortier facility located near New Orleans and the corresponding sales reduction of approximately $20 million, maintenance and repair costs, extra labor and related expenses and start up costs. Excluded from this estimate is the effect of recent price increases for oil and natural gas and any related impact on raw material and energy costs that Cytec purchases. The Company is in the process of assessing its ability to recover cost increases with price increases as well as other potential mitigating actions.

"At our Fortier facility, all of our employees have now reported in and all are safe. We are thankful for this as well as the quick progress they have made in the recovery efforts to restart production and service our customers," said Chairman, President and Chief Executive Officer David Lilley. "We were fortunate that the actual property damage to our facilities was relatively minor, principally from wind damage, and the capital expenditures associated with the repairs are estimated to be about $1 million. Due to the Herculean efforts of our employees supported by our suppliers, we had made tremendous progress in returning the facility to normal operations."

However, Hurricane Rita, while not expected to be a direct threat to any of Cytec's facilities, is causing disruptions in energy and raw material supplies as well as logistics. A number of supplier plants in the path of the hurricane have shutdown and our natural gas supplier has severely curtailed delivery to our Fortier facility which has resulted in the shut down of our operations beginning yesterday evening. It is too early to quantify the impact of supply disruptions, the Fortier facility shutdown or potentially further increases in raw material and energy costs from Hurricane Rita at this time.

"Our Engineered Materials segment has not been materially affected by the machinists strike at Boeing, a major customer," Lilley continued. "However, if the strike continues, we could see a delay in orders which would put further downward pressure on our results."

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.

Corporate Profile

Cytec Industries is a specialty chemicals and materials technology company with pro forma sales in 2004, including the Surface Specialties acquisition, of approximately $3.0 billion. Its growth strategies are based on developing technologically advanced customer solutions for global markets including: aerospace, coatings, mining, plastics and water treatment.