Based on proprietary formulas and processing technologies, NOVA Chemicals’ Performance Products provide significant benefits in end-use applications and can command higher margins versus standard, commodity resins. NOVA Chemicals continues to pursue aggressive growth targets and expand sales of Performance Products in both Olefins/Polyolefins and Performance Styrenics.

The polyethylene marketplace has been rapidly converting to our newest polyethylene Performance Products. In fact, resins introduced during the last two years now account for more than 20% of polyethylene Performance Products sales. In 2006, NOVA Chemicals delivered record sales of SURPASS^® performance polyethylene resins, with year-over-year sales growth of 17% over 2005 and improved profitability despite volatile market conditions for the polyethylene industry. Growth in SURPASS resin sales contributed to the sold-out position of the Company’s 850 million-pound Advanced SCLAIRTECH™ technology facility in 2006.

As a result of the Company’s 2006 restructuring, the Performance Styrenics business is more leveraged to the strengths of its differentiated polymers and to related, high-value consumer applications. This business unit includes Performance Products such as ARCEL^® resins for protective foam packaging and DYLARK^® FG resins for microwavable food packaging; a growing suite of building and construction products and ventures; as well as expandable polystyrene (EPS) resins, which are used in applications ranging from home insulation to beverage cups.

Following the 2006 startup of an ARCEL resin finishing facility with a strategic partner in Ningbo, China, the global ARCEL business is well positioned to serve growing Asian markets. The unique cushioning properties of packaging made from ARCEL protect damage-sensitive goods such as electronics and furniture during shipping and handling. Plus, the superior resilience of packaging made from ARCEL resin enables significant reductions in package sizes – in turn reducing overall logistics costs. ARCEL also helps customers meet sustainability objectives by reducing packaging waste by nearly 25%.

NOVA Chemicals also capitalizes on its strong technology position through its licensing business. In India, three major polyethylene facilities – two owned by Reliance Industries and one by GAIL (India) Ltd. – use NOVA Chemicals’ proprietary SCLAIRTECH™ processing technology. A fourth is under construction by Indian Oil Corporation Ltd. (IOCL). Today, nearly 40% of India’s total polyethylene production uses NOVA Chemicals’ SCLAIRTECH technology, making it the most practiced polyethylene production technology in one of the world’s fastest growing plastics markets.