1 CHM 585 /490 C 13 Ethyl acetate Opportunity

2 Ethyl acetate 150 million pounds per year in U.S. Used for a variety of solvent and vehicle applications. Coatings account for 60 percent of demand. Process solvents, including pharmaceuticals and organic synthesis, are 15 percent. Printing inks are 15 percent, and miscellaneous uses, including adhesives and cosmetics, are 10 percent.

3 STRENGTH Environmental regulations have restricted the use of hazardous air pollutants, and ethyl acetate has substituted for HAPs, such as MEK and toluene, in coatings formulations. The growth of higher- solids epoxies, polyesters and urethanes, which require polar solvents in place of alkyds, has increased the demand for acetate esters, including ethyl acetate. Solvents are crucial for the application of printing inks, and ethyl acetate's future is secure in that market with above-GDP growth.

4 PRODUCERCAPACITY* Celanese, Pampa, Tex.130 Eastman, Kingsport, Tenn.59 Eastman, Longview, Tex.51 Solutia, Springfield, Mass.30 Solutia, Trenton, Mich.24 Total294 *Millions of pounds per year.

5 The Opportunity If we spend $1MM on capital, we can build a 10MM lb / year ethyl acetate plant. We are fairly certain that we can sell all we make for $0.70/lb. Should we take out a 5 year loan and build the plant?

6 Our Process