Message From the CEO

I am tremendously proud and privileged to serve as Sterling Chemicals' President and CEO. This is an extraordinary time in our company’s history, and I’m fortunate to lead an organization that is special in so many ways. It is an exciting time to be here.

Sterling Chemicals is stronger today than ever in its recent history and we are exceptionally well positioned to take advantage of the opportunities ahead. Our accomplishments in 2008 include:

• Amending our BASF Plasticizers Production Agreement which generated $3M cash and avoided $3.7M of shutdown costs while giving us the right to receive proceeds from the sale of the plant
• Extending our BP Acetic Acid Production Agreement by 15 years to 2031 while incorporating amendments that generated $10.1M of 2008 EBITDA and $4.1M/year of future EBITDA
• Terminating our S&L Cogeneration joint venture with Praxair which resulted in a $5M cash distribution, title to NOx credits valued at ~$6M and the sale of idled equipment contributing $1M of 2008 EBITDA
• Completing a fixed cost reduction program that will result in $5.6M/year of fixed cost savings

However, no organization can afford to rest on its laurels. Every day offers a chance to exploit opportunities and to rectify weaknesses. Every plan we make, every action we implement, is driven towards:

• Safe, reliable and environmentally responsible operations
• Effective utilization of available capacity
• Superior expense and capital expenditure management
• Expansion of capacity through low cost or strategic investments
• Flawless execution of contract management & administration
• Monetization of unutilized assets and infrastructure
• Capture of economic merger and acquisition opportunities
• Optimized capital structure, tax credits and governmental subsidies
• Top-quality human resource management, development & utilization
• Leading shareholder returns

On behalf of everyone at Sterling Chemicals, it is my pleasure to welcome you to our website. I hope you find it informative and it provides you with a greater understanding of how Sterling Chemicals is working to build a stronger foundation for our business.”