2006

Environment, Health and Safety Report

Mission and Values We are dedicated to giving our customers the finest quality products and service available. Our customers are valued partners who permit us to remain in business and we are privileged to serve their needs.

Our mission

Our Commitment to Sustainability

We will operate safe, clean, efficient facilities in an environmentally and socially responsible manner.

Huntsman believes that our long-term success is dependent on how we develop our employees, contribute to the societies in which we operate, and care for the environment.

We will provide a work environment that fosters teamwork, innovation, accountability and open communication. We will place into society assistance for those who suffer, hope for those who may need inspiration and education for those who may feel the challenge but do not have the means. We have an aggressive growth philosophy which reflects the spirit of free enterprise and maximization of long term profits, the best motives for creating mutual benefits for customers, employees, suppliers and the communities in which we are located.

Our values We believe that ethical and moral standards are the foundation of good business policies, and will operate with integrity. We strive for participative management and employee involvement at all levels because each employee is an associate in our business and a vital part of our family. We recognize the basic contribution of each individual and will provide opportunities for personal growth and development. Benefits and compensation will reward performance both individually and collectively. We subscribe to these principles and strive every working day to improve their application.

Sustainable development requires the integration of environmental, social, and economic considerations into all aspects of a business and its decision-making processes. It is a business strategy that promotes continuous improvement through: • Improving the quality of life for employees, customers, and the communities in which we operate; • Reducing risks and impact to people and the environment; and • Supporting economic growth of the communities where we operate and improving the company’s longterm profitability. Sustainability provides the basis for how Huntsman conducts business. It is founded on the principles of transparency and respect in order to build trust with our stakeholders. Such transparency involves: • Identifying key environmental, social, and economic issues affecting our business and the locations where we operate; • Disclosing our past performance – both the successes and the failures; • Committing to continuous improvement by establishing long and short range improvement goals; and • Being accountable for our performance by tracking and reporting progress towards the goals identified in our improvement plans. As a world-scale chemical manufacturing company, we recognize the need for sustainability. We are fully committed to engaging the path to sustainability by making continuous improvements in how we conduct our business and acting as responsible chemical stewards in our industry.

Table of Contents OUR COMMITMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 ENVIRONMENT, HEALTH AND SAFETY VISION AND POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 RESPONSIBLE CARE® AND OUR CORPORATE EHS STANDARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 MANAGEMENT OF EHS THROUGH THE HUNTSMAN EHS STANDARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 EHS PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 REGULATORY COMPLIANCE MANAGEMENT SYSTEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 EHS METRICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 CORPORATE MANAGEMENT SYSTEMS AUDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 EHS TRAINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 EHS CRITERIA IN PERFORMANCE REVIEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 FIVE YEAR IMPROVEMENT PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 ENVIRONMENT — Emissions to Air . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 ENVIRONMENT — Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 ENVIRONMENT — Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 ENVIRONMENT — Discharges to Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 ENVIRONMENT — Generation of Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 ENVIRONMENT — Environmental Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 EMPLOYEE HEALTH & SAFETY — Performance Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 EMPLOYEE HEALTH & SAFETY — Health and Safety Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 EMPLOYEE HEALTH & SAFETY — Occupational Health Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 EMPLOYEE HEALTH & SAFETY — Internal Huntsman Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 EMPLOYEE HEALTH & SAFETY — 2006 Milestones and Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 PROCESS SAFETY AND EMERGENCY RESPONSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 PRODUCT STEWARDSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 COMMUNITY AWARENESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 THE HUNTSMAN CANCER INSTITUTE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

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Our Commitment Huntsman is committed to ever greater levels of achievement in environmental excellence, employee safety, product quality, growth and bettering the human condition. We focus on the Huntsman EHS Standards as the foundation of environmental, health, and safety (EHS) excellence in our business and strive for continuous improvement toward the goal of no accidents, injuries or harm to the environment. The safety of each Huntsman employee, as well as independent contractors who work within our gates, is of the utmost importance. Our associates always have accepted the challenge to create and maintain a safe workplace, and have attained many safety-related milestones. We believe the preservation of the environment is one of the most important issues facing the business world today, and we have made environmental initiatives an integral part of our corporate culture. We are committed to conserving resources and acting as responsible stewards for the environment. We are aware that our actions today will determine the kind of world we leave our children. We welcome any comments you may have concerning this report.

Peter R. Huntsman President and CEO

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Environment, Health and Safety Vision and Policy • Have corporate standards and guidelines to assure that this policy is followed at all facilities; • Have operating procedures at each facility consistent with this policy and applicable corporate standards and guidelines; • Ensure that adequate resources are dedicated to effectively implement all aspects of this policy; and • Utilize EHS auditing to evaluate compliance with this policy.

The Huntsman EHS Vision is to achieve EHS excellence in all aspects of its business. Huntsman associates will strive for continuous improvement through the implementation of the Huntsman EHS Standards toward the goal of no harm to people or to the environment. All associates will achieve a high level of EHS performance and improvement through empowerment and accountability. Huntsman EHS Vision and Policy

We will continuously improve our EHS programs through evaluation, review and implementation of appropriate corrective and preventive actions.

Huntsman and each of its worldwide subsidiaries are committed to achieving excellence in environment, health and safety (EHS). It is the responsibility of both management and associates to operate safe, clean and efficient facilities in an environmentally and socially responsible manner. Huntsman EHS Vision and Policy objectives: • Provide all associates with a safe and healthful workplace; • Communicate environment, health and safety information regarding our operations and products to our associates, contractors and the public; • Provide our distributors and customers with the information necessary to handle and manage our products safely; • Comply with applicable environmental, health and safety laws, regulations and company standards; • Strive for continuous improvement through the implementation of the Huntsman EHS Standards; • Ensure that all managers, associates and contractors are aware of this policy and have been trained in their specific responsibilities for achieving EHS excellence; and • Maintain open communication with the public regarding our implementation of this policy. Policy Implementation Huntsman has established a procedure for the identification and periodic review of EHS goals and targets for achieving the objectives of this policy at each facility worldwide. We:

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Responsible Care and Our Corporate EHS Standards Huntsman was an original signatory to the Responsible Care® Guiding Principles after the initiative was brought to the United States in 1988. The Huntsman EHS Standards provide a framework for the implementation of these principles.

• Listen and respond to public concerns; • Assist each other to achieve optimum performance; and • Report their goals and progress to the public.

The chemical industry launched Responsible Care® to respond to public concerns about the manufacture and use of chemicals. It requires companies to:

Huntsman continues to honor our commitment to the principles of Responsible Care® through the EHS Standards and as a member of the Chemical Industries Association (CIA).

• Continually improve their health, safety and environmental performance;

OUR RESPONSIBLE CARE® COMMITMENT The chemical industry creates products that make life better for people around the world. Huntsman is committed to making continuous progress toward the vision of no accidents, injuries or harm to the environment and will publicly report our global health, safety and environmental performance. We will lead our company in ethical ways that increasingly benefit society, the environment and the economy while adhering to the following principles:

• To work with customers, carriers, suppliers, distributors and contractors to foster the safe use, transport and disposal of chemicals; • To operate our facilities in a manner that protects the environment and the health and safety of our associates and the public; • To support education and research on the health, safety and environmental effects of our products and processes; • To work with others to resolve problems associated with past handling and disposal practices; • To lead in the development of responsible laws, regulations and standards that safeguard the community, workplace and environment; and • To practice Responsible Care® by encouraging and assisting others to adhere to these principles and practices.

• To seek and incorporate public input regarding our products and operations; • To manufacture chemicals that can be transported, used and disposed of safely; • To make health, safety, the environment and resource conservation critical considerations for all new and existing products and processes; • To provide information on health or environmental risks and pursue protective measures for associates, the public and other key stakeholders;

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Management of Environment, Health and Safety Through the Huntsman EHS Standards In order to uphold our commitment to the environment and the health and safety of our employees and fellow neighbors, Huntsman has implemented a set of global EHS standards. These standards have been used to support the full implementation of the Huntsman EHS Protection Policy and the Responsible Care® Management System since 2001. Each Huntsman site is charged with the full implementation of the forty-eight individual global EHS standards. Newly-acquired sites are given a short period of time in order to conduct gap analyses and develop programs that ensure compliance with the standards. Once the standards are in place, sites conduct internal periodic audits in order to ensure continued compliance. By December 2006 all Huntsman's sites, with the exception of the newly acquired Textile Effects business, had achieved 100% implementation of the EHS Standards. A gap analysis was completed for the Textile Effects sites and a plan has been established to achieve 100% implementation by end of 2008. The standards provide the foundation for the Huntsman EHS management system in areas of EHS Management, Process Safety, Employee Health and Safety, Security, Pollution Prevention, Distribution, Community Awareness and Emergency Response and Product Stewardship. Standards within these areas of EHS management clearly define the elements needed for providing a safe and environmentally sound workplace for employees, contractors and the surrounding communities.

Corporate EHS Standards Implementation Status 100 90

Percent Implemented

80 70 60 62

50

82

90

92

99

EHS Management Standards (Tier 1) define the function and implementation of EHS Standards, standards development, personnel roles and responsibilities, auditing, investigation of incidents, improvement plans and training, communication, integrating new businesses, reporting and operating procedures, contractor selection and management and monitoring performance metrics and financial disclosure. Our management standards are, by design, consistent with the Responsible Care® management system.

92*

40 30 20 10 0

Project Start

Feb 2001 Nov 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Percent

*Textile Effects recently acquired

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Environment, Health and Safety Management Through the Huntsman EHS Standards The Product Stewardship Standard provides measures to be taken to foster responsible EHS management at every stage of the product life cycle including product design and development, supply of raw materials, manufacture, storage, packaging and distribution, use of chemicals, use of the final products and recycling-reuse-disposal. Requirements are outlined for evaluation of relevant hazards and risks of the substances over their life-cycle incorporating the views of relevant stakeholders.

Process Safety Standards provide details needed for assessing potential process hazards and providing safeguards, managing changes to equipment programs and personnel, ensuring the integrity of critical process and support equipment and maintaining process safety information. These standards are designed to provide a program for the effective prevention of fires, explosions and chemical releases. Employee Health and Safety Standards outline details for the identification, evaluation and protection measures to protect employees and contractors from injury and ill health effects. Some of the areas covered by the standards include isolation of equipment for maintenance activities, work permits, inspection of the work sites, job safety analysis, hearing conservation and ergonomics. The code also contains requirements for facility security including control of entry and exit points, ensuring proper identification prior to entry and written procedures for stricter controls during periods of heightened security alerts.

The global EHS standards are periodically reviewed and revised as part of the on-going effort to maintain and improve EHS initiatives that Huntsman is committed to achieving.

Community Awareness & Emergency Response (CAER) Standards

Pollution Prevention Standards require monitoring and quantification of releases to air, evaluation of past waste management practices and the need for future remedial measures.

Process Safety Standards

Employee Health & Safety Standards

Tier 1 Standards

Distribution Standards ensure systems are in place for effectively handling emergencies involving the distribution of Huntsman products and assessing and controlling associated risks.

Pollution Prevention Standards

Community Awareness and Emergency Response Standards require the development and implementation of emergency response plans to effectively handle all types of emergencies that may arise at Huntsman facilities. The standards also ensures the identification of community stakeholders and the communication of relevant hazards, risks, emissions, impacts, significant incidents, and facility emergency preparedness and response plans to the stakeholders in order to educate the public.

Distribution Standards

Product Stewardship Standard

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Environment, Health and Safety Management Through the Huntsman EHS Standards Huntsman's 48 individual EHS Standards include: Tier 1 Standards EHS-100 EHS-101 EHS-102 EHS-103 EHS-104 EHS-105 EHS-106 EHS-107

Function and Implementation of the EHS Standards EHS Roles and Responsibilities EHS Auditing Notification and Investigation of EHS Incidents EHS Improvement Plans EHS Training Selection and Management of Contractors EHS Communications

EHS-108 EHS-109 EHS-110 EHS-111 EHS-112

Acquisition, Divestitures, and New Business Integration Agency Inspections and Investigations Routine Monitoring and Reporting of EHS Performance Operating Procedures Internal Controls for the Recognition and Reporting of EHS Liabilities

Community Awareness & Emergency Response (CAER) Standards EHS-200 EHS-400

Community Awareness and Outreach Facility Emergency Preparedness and Response Plans

EHS-401

Business Crisis Management Plans

EHS-301

Distribution Risk Management

EHS-509 EHS-510 EHS-511 EHS-512 EHS-513 EHS-514

Ionizing Radiation Asbestos Associate Health Assessment & Health Services Facility Industrial Hygiene Programs Ergonomics and Human Factors Engineering Decontamination of Equipment Prior to Removal from Operating Units Controlled Equipment Lifting Equipment Integrity

Distribution Standards EHS-300

Distribution - Emergency Response

Employee Health & Safety Standards EHS-500 EHS-501 EHS-502 EHS-503 EHS-504 EHS-505 EHS-506 EHS-507 EHS-508

Isolation of Equipment Work Permits Confined Space Entry Job Safety Analysis (JSA) Regular Inspection Programs Facility Security and Visitor Control Personal Protective Equipment (PPE) Hearing Conservation Working at Heights and Fall Protection

EHS-515 EHS-516

Pollution Prevention Standards EHS-600 EHS-601

Waste Reduction Programs Environmental Protection: Past Operating and Waste Management Practices

EHS-602

Monitoring and Assessment of Releases to the Environment

EHS-705

EHS Critical Control and Instrumented Systems Integrity Hazard Identification and Analysis EHS Considerations for Capital Projects Electrical Safety and Equipment Integrity

Process Safety Standards EHS-700 EHS-701 EHS-702 EHS-703 EHS-704

Management of Change (MoC) Process Safety Information (PSI) Process Equipment Integrity EHS Critical Mechanical and Pressurized Systems Integrity EHS Critical Structural and Civil Systems Integrity

EHS-706 EHS-707 EHS-708

Product Stewardship Standard EHS-800

Product Stewardship

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EHS Performance Huntsman is committed to achieving environmental, health, and safety excellence in all aspects of the business and striving for continuous improvement in EHS performance. Many programs were implemented in 2006 in support of our commitment and goals such as:

• Development and implementation of EHS metrics reporting; • Ensuring EHS accountability through annual performance reviews; • Expanded near miss and incident reporting to all sites; • Implementation of a corporate initiative for behavioral based safety processes to improve employee awareness and safe actions while performing work activities; • Issued separate Guidance Documents for improved employee protection on: - Hexavalent Chromium; - Handling Hearing Loss Cases; - Respiratory Protection Equipment Selection and Use; • Performed detailed industrial hygiene exposure assessments at manufacturing sites; and • Expanded an Industrial Hygiene Awards program for recognizing Huntsman customers.

• Assessed newly acquired Textile Effects business with respect to Huntsman EHS Standards, and formulation of a plan to achieve full implementation by end of 2008; • Continued implementation of EHS Standards at all facilities; • Completion of corporate audits scheduled at over 1/3 of the Huntsman sites. Audits were conducted in areas of process safety, health and safety, environment, medical, security and risk improvement; • Continued implementation of management systems to ensure compliance with regulations; • Performance monitoring and trending; • Communication of learning events across the facilities; • EHS training through computer based and classroom programs;

REGULATORY COMPLIANCE MANAGEMENT SYSTEMS Compliance with regulations is the expectation for all Huntsman facilities around the world. EHS standards, designed and implemented, assist in meeting and exceeding regulatory requirements. Many of our sites have also been recognized for going beyond the minimum regulations through programs such as OSHA’s Voluntary Protection Program and International Standards Organization certification process.

and facilities; enforcement of facility rules and policies; regulatory reviews; and compliance audits.

Regulatory compliance is assured through implementation of the EHS standards; continued administration of management systems; employment of EHS professionals; adherence to industry standards in the design and revisions of equipment

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EHS Performance

EHS METRICS Our goal to achieve excellence in EHS protection cannot be realized without the knowledge of our past record, our current performance and goals for achieving future performance improvements. In order to maintain the knowledge base needed for continuous improvement, a system of performance measurements has been implemented which provides data for analysis of the effectiveness of EHS programs.

total non-hazardous waste generation to a total reduction of 20%; and • Hazardous waste generation is down 33% over last year and, for the first time, dropped below 1998 baseline levels. In 2006, Huntsman divested some of our operations — namely our Texas-based, Port Neches Base Chemicals and our UK-based, Wilton Base Chemicals facilities, as well as a few additional low margin operations. Collectively, those base chemicals operations were responsible for a disproportionately large percentage of our total production (in metric tons) while having comparatively low environmental emissions. As a result of these divestitures however, Huntsman no longer includes the production or emissions data for these operations as part of our 2006 data. The following charts and graphs reflect the reduction in production and emissions due to the divestitures.

EHS metrics reporting is a requirement for each of our businesses and sites around the world. Metrics are kept on environmental, health and safety, process safety, transportation safety and management systems performance. Performance highlights during 2006: • Half of the Huntsman sites reported zero recordable occupational injuries and illnesses for year 2006 as measured via the U.S. Occupational Safety and Health Administration (OSHA) definitions; • For the second year in a row, the OSHA total recordable incidence rate was below 1.0, calculated at 0.8 for year 2006; • Since 1998 baseline levels, non-greenhouse gas air emissions have been reduced 67% — including a 14% reduction from 2005 levels; • Total greenhouse gas emissions are down 52% from 1998 levels; • A reduction in wastewater discharge of 8%; • For the third year in a row, Huntsman has reduced our

Huntsman associates are working hard to find new ways to improve and implement systems for reduction in injuries, reduction of emissions to the environment and the generation of waste at their source. Our associates are also constantly challenged to improve the efficiency of our processes which ultimately results in less physical effort required, less energy spent, lower emissions and waste and less harm to the environment.

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EHS Performance CORPORATE ENVIRONMENTAL HEALTH & SAFETY AUDITING The Huntsman Corporate EHS Audit program is an important element of the EHS management system utilized by Huntsman, and is the core of our EHS performance measurement. Corporate EHS audits are used to:

among other factors. EHS audits are normally performed every 3 years; the cycle can be lengthened up to a maximum of 5 years for facilities with the lesser complex EHS risk profile. Each year, a detailed audit plan is developed that identifies sites to be audited, the type of audit, and audit team staffing. Thirty-five [35] facility audits were performed in 2006, comprising 16 combined Environmental and Health & Safety audits, 6 OSHA Medical Compliance audits, 8 Process Safety Management audits, and 5 Risk Improvement Plan surveys. The EHS audits included post-acquisition audits at the three largest of the Textile Effects facilities purchased in 2006 – the remaining Textile Effects facilities are scheduled to be audited in 2007.

• Ensure compliance with legal obligations and company standards; • Ensure the implementation and maintenance of effective EHS management systems; • Drive continuous EHS improvement at all levels in the company; and • Serve as a vehicle for the sharing of best practices. In addition, Risk Improvement Process (RIP) surveys (insurance surveys) are used to meet the due diligence needs of our insurance underwriters.

Completion of remedial actions is actively tracked, and verified by Huntsman associates independent of the facility audited.

Each Huntsman manufacturing facility is audited on a risk-based frequency which considers potential hazards at the facility, existing controls and performance history,

EHS TRAINING As part of the Huntsman EHS Standards, all Huntsman associates and contractors are instructed on the requirement of the EHS Protection Policy and are trained on their specific responsibilities for environmental, health and safety protection. These

training requirements have been implemented throughout all Huntsman facilities and businesses. Additionally in 2006, specialized EHS seminars were developed for key business and facility leaders.

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EHS Performance EHS CRITERIA IN PERFORMANCE REVIEWS In accordance with Huntsman’s EHS Standards, EHS performance assessments are integrated into annual performance reviews for our associates. This practice

has established clear accountability for responsible personnel, while providing a method for acknowledging and rewarding outstanding performance.

FIVE YEAR IMPROVEMENT PLAN Huntsman’s EHS leadership team, in cooperation with senior business leaders, has developed a long-term EHS Improvement Plan. The elements of this plan are essential in the development of specific business goals which are an integral part of each Huntsman business. On an annual basis, the EHS Improvement Plan and business goals are updated in order to promote continuous improvement. Huntsman’s current EHS Improvement Plan is: • Reduce Risk to Operations and Personnel - Improve Global Process Safety Management programs to ensure consistency with standards; - Conduct focused process safety audits in Europe, Africa, Middle East (EAME) and Asia-Pacific (APAC); - Expand EHS training and education; and - Implement Behavioral Based Safety.

• Environmental Improvements - Develop a plan to reduce greenhouse gas emissions and energy consumption; and - Introduce a well-defined energy policy. • Sustainable Development - Define and implement a Sustainable Development plan; and - Improve the transparency and reporting against a recognized system.

• Improve Product EHS Management - Monitor and assess REACH legislation in Europe; - Standardize MSDS systems; and - Implement Risk Assessment process.

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EHS Performance ENVIRONMENT – Emissions to Air Huntsman routinely monitors, tracks, and reports chemical emissions to the atmosphere – whether specifically permitted, part of routine operations, or accidental releases. Air emissions are releases of volatile organic compounds (VOCs), carbon monoxide (CO), nitrogen oxides (NOx), sulfur oxides (SOx), particular matter, and other contaminants. Permitted air emissions are typically generated during routine manufacturing operations, volatilization from chemical storage, wastewater treatment and fugitive equipment emissions. Greenhouse gases are also monitored, but are reported separately – (please see section titled Greenhouse Gas Emissions).

Huntsman Air Emissions

Air Emissions (Metric Tons)

70,000

0.006

60,000

0.005

50,000 0.004 40,000 0.003 30,000 0.002 20,000 0.001

10,000 0

1998 Baseline

Air Emissions (Metric Tons)

2003

2004

2005

2006*

0.000

Metric Tons Air Emissions Per Metric Tons Production

(excluding Greenhouse Gases)

Metric Tons Air Emissions Per Metric Tons Production

*Excludes data from Base Chemicals facilities at Port Neches, TX and Wilton, UK due to divestitures during 2006.

Since 1998 baseline levels, air emissions have decreased 67% (and down nearly 14% from 2005 levels). The decreases in air emissions are attributed to ongoing replacement of older equipment with new advanced technology, implementation of new emissions controls, maintenance for manufacturing equipment (i.e., repairs), and closing or divesting of low-margin operations. Huntsman is proud that total air emissions for all Huntsman facilities world-wide have continued to decrease despite significant company growth. As detailed in previous Annual Reports, numerous site-specific efforts to reduce our air emissions have been undertaken. Noteworthy examples include: • Carbon monoxide emissions at the Geismar, Louisiana site, previously vented to the atmosphere, are now being routed to an onsite incinerator. • The Odessa, Texas plant reduced VOC and NOx emissions through a two-pronged approach equipment upgrades and waste product recycling.

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EHS Performance Odessa installed a new flare and a regenerative thermal oxidizer in 2004 which reduced volatile organic compound (VOC) emissions over the following year. Similarly, installation of new, low NOx burners on several boilers directly reduced NOx emissions. In contrast, additional reductions in NOx emissions came when a liquid fuel stream, which was formerly combusted on-site, was reclassified as a “marketable” by-product, thus allowing the plant to shut down and decommission an entire boiler. This reduced on-site emissions of NOx, total particulates, and VOCs by approximately 144, 10.4, and 7.4 tons per year, respectively and resulted in savings of over $100,000 per month in fuel costs. • Instead of venting excess CO to the atmosphere, the Rozenburg, Holland facility re-routes the gas to one of the plant’s feed suppliers for incineration.

• In January 2006, a new state-of-the-art film drier came on-line at our Castiglione, Italy facility replacing existing spray driers. The new film drier immediately reduced emissions and significantly lowered energy consumption. • The Geismar, Louisiana facility undertook a project to change its propylene oxide storage tank. Modifications to a pressure control setting reduced about 150,000 pounds per year of propylene oxide venting to the air incinerator. In addition to the waste reduction, a cost savings of over $100,000 per year has been realized. This was accomplished with a nominal expenditure of approximately $1,000 - demonstrating waste reductions projects don’t have to be expensive to be effective.

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EHS Performance ENVIRONMENT – Greenhouse Gas Emissions Greenhouse gases (GHG) are a broad class of atmospheric chemicals that contribute to global climate change. Some greenhouse gases occur naturally in the atmosphere, while others result from human activities such as combustion of fossil fuel and coal. The six primary greenhouse gases of concern (under the Kyoto Protocol) include carbon dioxide (CO2), methane, nitrous oxide, as well as three groups of fluorinated gases; sulfur hexafluoride (SF6), hydrofluorocarbons (HFC), perfluorocarbons (PFC).

chemical processing operations include HFCs, PFCs, and SF6. Emissions of HFC, PFC, and SF6 are typically released to the atmosphere from manufacturing equipment that use the chemicals as refrigerants.

As a socially and ecologically responsible global corporation, Huntsman is committed to reducing the impact of our greenhouse gas emissions. Carbon dioxide, methane, and nitrous oxide are released to the atmosphere at Huntsman facilities primarily through the combustion of fossil fuels to manufacture chemicals and to generate electricity and steam. Other greenhouse gases that may be released during

Though the United States has not ratified the Kyoto Protocol, our facilities in the U.S. are committed to the U.S. Government program to reduce greenhouse gas emission intensity by 18% by 2012, compared to 1990 baseline levels. Our European facilities are committed to comply with the European obligations under the Kyoto Protocol of reducing total greenhouse gas emissions by 8% by 2012, compared to 1990 baseline levels.

Overall GHG generation is proportional to our production levels and energy consumption. The challenge in the coming years is to reduce GHG generation even as production increases. We believe that we are up to the challenge.

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EHS Performance Total greenhouse gas emissions from onsite sources decreased 52% between 1998 and 2006. Prior to 2006, Huntsman had witnessed only moderate decreases from the baseline levels. In 2006, Huntsman began divesting some of our low-margin operations that were also responsible for disproportionately high greenhouse gas emissions.

The chart below shows levels of greenhouse gases generated at Huntsman manufacturing facilities worldwide. Greenhouse gases are reported in standard units of CO2 equivalents. Not included in our reporting are greenhouse gas emissions generated by third party energy suppliers, such as commercially purchased electricity and/or steam suppliers. Also, Huntsman began systematically collecting environmental data in 1998, and therefore uses 1998 as our baseline year.

CO2 Equivalent Emissions (MM Metric Tons)

(as CO2 Equivalent Emissions) 8.0

0.7

7.0

0.6

6.0

0.5

5.0 0.4 4.0 0.3 3.0 0.2

2.0

0.1

1.0 0

1998 Baseline

2003

2004

2005

2006*

0.0

Metric Tons CO2 Equivalent Emissions Per Metric Ton Production

Huntsman Greenhouse Gas Emissions

CO2 Equivalent Emissions (Metric Tons) Metric Tons CO2 Equivalent Emissions Per Metric Tons Production *Excludes data from Base Chemicals facilities at Port Neches, TX and Wilton, UK due to divestitures during 2006.

GHG Emission Intensity versus Total Emissions The U.S. Government plan calls for 18% reductions in greenhouse gas emission intensity (or GHGI), whereas the Kyoto Protocol calls for an 8% reduction in total emissions. Emission intensity is measured relative to overall production, meaning the amount of GHG emissions per unit of gross domestic product. In contrast, Kyoto’s total emissions reduction requires an absolute reduction regardless of production amounts or production efficiencies.

15

EHS Performance ENVIRONMENT – Energy Efficiency estimated at over $2,600,000 dollars per year in lowered steam purchases. • Using the rigorous Six Sigma methodology, the Peru, Illinois facility reduced natural gas and electrical usage by 23.8% and 20.2% respectively. In aggregate, the project has saved over $600,000 per year in costs. The purpose of the project was to evaluate all sources of electrical and natural gas, and challenge all past assumptions to reduce energy consumption without capital investment.

Reductions in greenhouse gas emissions generally go hand in hand with increases in energy efficiency. Huntsman is continually looking beyond the basics to find innovative ways to increase energy efficiency at our facilities worldwide. Not just good for business … energy efficiency is good for the planet. While energy usage and energy efficiency have not typically been reported in previous Annual Reports, Huntsman’s total energy consumption is down about 3.5% from 1998 levels. A number of Six Sigma projects are underway at many of our facilities looking for opportunities to take energy efficiency even further.

Huntsman Energy Usage 0.012

180,000

Total Energy Usage (Tera Joules)

160,000 0.010 140,000 0.008

120,000 100,000

0.006 80,000 0.004

60,000 40,000

0.002 20,000 0

1998 Baseline

2003

2004

2005

2006*

0.00

Total Energy Usage (Tera Joules) TJ Energy per Metric Tons Production *Excludes data from Base Chemicals facilities at Port Neches, TX and Wilton, UK due to divestitures during 2006.

Six Sigma is a system of practices to systematically improve processes by eliminating defects. Since it was originally developed, Six Sigma has become an element of many Total Quality Management (TQM) initiatives. The core of the Six Sigma methodology is a data-driven, systematic approach to problem solving, with a focus on customer impact. Six Sigma as a problem-solving approach has traditionally been used in fields such as business, engineering, and production processes.

16

TJ Energy Usage per Metric Tons Production

• Huntsman formed a new strategic business unit (SBU) dedicated to the enhancement of the Company’s Green Chemistry initiatives. The SBU will also focus on energy efficiency/conservation. • Within the Huntsman Performance Products business in Botany, Australia, efforts are being made to identify methods to reduce energy consumption and losses at our manufacturing facilities. • As part of routine operations, Huntsman’s Geismar, Louisiana site purchases millions of pounds of steam per year. Reducing steam usage is a benefit from both a cost and greenhouse gas generation standpoint. Recently, a reactor was installed in the Aniline Complex to reduce the amount of steam required to refine aniline. The project reduced steam usage by 195,000,000 pounds per year. The steam usage reduction also has lowered greenhouse gas emissions in the area by over 26,000,000 pounds per year. Finally, the cost savings to Geismar is

EHS Performance ENVIRONMENT – Discharges to Water

Wastewater discharges from Huntsman facilities are routinely monitored and are reported as COD. The reported discharge levels are measured at the point where the wastewater is discharged from the manufacturing facility, after receiving on-site pretreatment. In some instances, Huntsman facilities discharge to third-party wastewater treatment plants (municipalities or other chemical companies). In these cases, subsequent treatment achieves further COD reductions beyond the levels reported by Huntsman. Wastewater discharges of COD have decreased by about 8% between 1998 and 2006. A notable increase in wastewater discharge in 2003 is visible on the graph and is a result of acquiring the Advanced Materials (AdMat) business in July of that year. Also noteworthy: • Year 2006 saw a welcome return to normal operations for our Gulf Coast, USA facilities. In lateSeptember 2005, four of our Gulf Coast facilities were shut down and secured immediately prior to landfall of Hurricane Rita. Two facilities resumed operations within weeks, but full-scale operations for our entire

Huntsman Wastewater Discharge (as COD)

0.0014

18,000 16,000

0.0012

COD (Metric Tons)

14,000 0.0010

12,000 10,000

0.0008

8,000

0.0006

6,000

0.0004

4,000 0.0002

2,000 0

1998 Baseline

2003

2004

2005

2006*

Metric Tons COD Per Metric Tons Production

In environmental chemistry, the chemical oxygen demand (COD) test is commonly used to indirectly measure the amount of organic compounds in water. Most applications of COD determine the amount of organic pollutants found in surface water (e.g. lakes and rivers), making COD a useful measure of water quality. Wastewater quality indicators such as COD and the biochemical oxygen demand (BOD) are essentially laboratory tests to determine whether or not a specific wastewater will have a significant adverse effect upon animal or aquatic plant life.

0.0000

COD (Metric Tons) Metric Tons COD Per Metric Tons Production *Excludes data from Base Chemicals facilities at Port Neches, TX and Wilton, UK due to divestitures during 2006.

Gulf Coast regional facilities did not resume until our fourth facility came back on-line in early November 2005. As a result of this unscheduled stoppage, combined with periodic shutdown of other operations for routine maintenance, the fourth quarter 2005 recorded a significant dip in our wastewater discharge. These decreases were not expected to be sustainable and as our Gulf Coast facilities resumed operation in November, wastewater discharges have come back to normal levels for 2006. • The Chennai, India Advanced Materials site has implemented REDCOD project to reduce the COD in raw effluent, which resulted in a reduction of COD from 25,000 to 18,000 parts per million.

A correction was made to the previously reported wastewater discharge numbers for 1998-2004. Wastewater at the Pensacola, Florida facility has been reclassified as non-hazardous waste due to its disposal through deepwell injection. This correction has resulted in a decrease in the 1998-2004 wastewater discharge and an increase in the non-hazardous waste generation previously reported in the 2003 and 2004 Huntsman EHS reports.

17

EHS Performance ENVIRONMENT – Generation of Waste Huntsman Non-Hazardous Waste Generation

Non-Hazardous Waste (MM Metric Tons)

Non-hazardous waste generation decreased by 20% between 1998 and 2006. Waste reduction opportunities often create multiple benefits by making plant processes more efficient. These “multiple benefit” projects can result in significant cost savings to Huntsman in addition to reducing waste generation. Some especially noteworthy examples are highlighted below.

2.0

0.16

1.8

0.14

1.6 0.12 1.4 0.10

1.2

0.08

1.0 0.8

0.06

0.6 0.04 0.4 0.02

0.2 0

1998 Baseline

2003

2004

2005

2006*

0.00

Metric Tons Non-Hazardous Waste Per Metric Tons Production

Non-hazardous waste and hazardous waste, as defined by local laws, are strictly monitored and reported at each of our manufacturing facilities. Non-hazardous waste and hazardous waste are tracked and reported separately. The reported waste generation includes wastes that are sent to an offsite landfill, injected into a deep underground well, sent to third-party treatment facilities, or reclaimed/reused/recycled (including burned as fuel – waste “co-generation”). This category also includes waste generated during normal operations and maintenance activities.

Non-Hazardous Waste (Metric Tons) Metric Tons Non-Hazardous Waste Per Metric Tons Production *Excludes data from Base Chemicals facilities at Port Neches, TX and Wilton, UK due to divestitures during 2006.

• Approximately 80% of Huntsman’s non-hazardous wastes are comprised of iron salts and gypsum, generated by the Pigments business during acid neutralization. Ongoing efforts by our Pigments operations to reduce these wastes and improve environmental performance have been very successful at utilizing this resource, and turning potential wastes into co-products with potential beneficial uses. For example, while the Pigments business has seen increasing production levels, increases in secondary sales of iron salts and gypsum to water treatment, agriculture, and building construction markets have more than outpaced production - resulting in approximately a 20% reduction in waste disposal between 2000 and 2005.

A correction was made to the previously reported wastewater discharge numbers for 1998-2004. Wastewater at the Pensacola, Florida facility has been reclassified as non-hazardous waste due to its disposal through deepwell injection. This correction has resulted in a decrease in the 1998-2004 wastewater discharge and an increase in the non-hazardous waste generation previously reported in the 2003 and 2004 Huntsman EHS reports.

18

EHS Performance Huntsman Hazardous Waste Generation 0.016

250,000

Hazardous Waste (Metric Tons)

0.014

Hazardous waste generation decreased by one percent between 1998 and 2006. Until 2006, Huntsman had witnessed steadily increasing levels of hazardous waste generation. Notable increases in 2004 and 2005 were attributed to wastes generated during periodic maintenance, changes in regulatory waste classifications, and a malfunctioning emission control device. However, hazardous waste generation across all Huntsman facilities has returned to pre-1998 levels. Most notably, for 2006 we decreased our hazardous waste levels 33% compared to 2005. Recent significant decreases in hazardous waste generation at several Huntsman facilities include:

200,000

0.012 0.010

150,000

0.008 100,000

0.006 0.004

50,000

0.002 0

1998 Baseline

2003

2004

2005

2006*

0.000

Metric Tons Hazardous Waste Per Metric Tons Production

• At the Geismar, Louisiana facility, polyolsconcentrated effluent had previously been disposed of offsite through land farm application. Over the past year, the plant has been redirecting the majority of the stream for reuse in drilling applications. This reduced the waste disposal volumes by approximately 600 tons per year over historical levels, and allowed the former waste to be reused for a beneficial purpose.

Hazardous Waste (Metric Tons) Metric Tons Hazardous Waste Per Metric Tons Production *Excludes data from Base Chemicals facilities at Port Neches, TX and Wilton, UK due to divestitures during 2006.

- Establish tracking tools for Production to allow more ability and focus to reduce aniline losses; - Improve communication with Production and Maintenance during activities which have historically increased aniline losses; and - Report progress at the Waste Minimization meetings and brainstorm with the Waste Minimization Team for further improvement opportunities.

• An in-line equipment cleaning process at the Port Neches, Texas Performance Products plant reduced the total volume of hazardous catalyst residue.

These efforts decreased aniline losses to the deep well by over 600,000 pounds in 2006 compared with 2005. Geismar aniline production was similar (within 3.3%) in 2005 and 2006, demonstrating that the aniline loss reductions were the result of the Waste Minimization Team’s efforts.

• The Geismar, Louisiana facility formed an Aniline Loss Team to lower aniline losses to the deepwell injection system. The group included Process Engineering representatives to: - Identify/implement capital projects to reduce aniline losses;

*The PNBC plant has since been sold to Texas Petrochemicals LP in June 2006.

19

EHS Performance ENVIRONMENT – Environmental Accomplishments • Huntsman facilities worldwide have been recognized by local and national organizations for environmental initiatives. The Rozenburg, Netherlands site won the first Responsible Care® award given by the chemical industry in the Netherlands, and Huntsman Chemical Australia was one of the first companies to embrace the Australian government's “Greenhouse Challenge” to reduce the emission of greenhouse gasses.

At Huntsman, associates, businesses, and sites are committed to the implementation of the EHS Standards and the development of management systems to reduce emissions to the environment and the generation of waste at its source. We challenge ourselves to continual environmental improvement – and we are quick to recognize the accomplishments of our associates, facilities, and businesses. The accomplishments range from internal recognition for EHS excellence, participation in voluntary compliance programs, to regional and national awards. Highlighted below are just a few of our recent environmental accomplishments. • In 2006, the Charlotte, North Carolina Textile Effects site was chosen to receive the CharlotteMecklenburg Utility Award for Environmental Excellence in Industry. This prestigious award was in recognition of the environmental stewardship demonstrated by the facility over the past 3 years.

• The U.S. Environmental Protection Agency (EPA), along with the Louisiana Department of Environmental Quality (LDEQ), presented a plaque on April 13, 2006, to Rubicon LLC (Huntsman Geismar Louisiana), marking its entrance into the National Partnership for Environmental Priorities (NPEP). Rubicon has entered this voluntary program by pledging to reduce one-half million pounds of aniline and one million pounds of benzene from the waste it generates.

• The Huntsman Port Neches, Texas complex has created additional wetlands in the area adjacent to the Neches River, due east of the Port Neches Performance Products dock. Approximately 150 acres of wetlands exist for the many types of plants and animals in that area.

“Using innovative approaches to reduce the use of hazardous chemicals is a good environmental strategy," EPA Regional Administrator Richard E. Greene said. "By joining this program, Rubicon is not only protecting public health and the environment, but showing good economic and business sense.”

Huntsman ISO 14001 certified facilities Polyurethanes Bangpoo – Thailand Cartagena – Colombia Deer Park – Australia Deggendorf – Germany Kuan Yin – Taiwan Rozenburg – Holland Ternate – Italy

Advanced Materials Chennai – India Duxford – UK Vienna – Austria Panyu — PRC Bad Saeckingen —Germany

Pigments Calais – France Greatham – UK Grimsby – UK Huelva – Spain Scarlino – Italy Teluk Kalung – Malaysia Umbogintwini —South Africa

Performance Products Botany - Australia Freeport, Texas - U.S.

20

Base Chemicals & Polymers Odessa, Texas – U.S. RMAX Victoria – Australia Textile Effects Panyu – PRC Langweide — Germany

EHS Performance the environment. They have also been trained on the EHS Policy statement that is posted throughout the plant. Operations & Maintenance and other personnel have been, and continue to be, active in achieving the environmental goals for the plant.

The NPEP is a voluntary waste minimization program that encourages public and private organizations to form voluntary partnerships with EPA to reduce the use or release of 31 priority chemicals beyond the requirements of environmental regulations. These chemicals are long-lasting substances that can harm humans and the environment.

All of this effort has combined to get the facility Environmental Management System (EMS) certified to ISO 14001. ISO 14001 provides the necessary framework to prove that all of the elements of the Clean Texas program are properly addressed. The certified EMS, the facility and the associates and contractors have been audited and reviewed by the TCEQ to prove that the Huntsman Ethyleneamines Plant is committed to environmental performance.

“Rubicon is honored to be chosen as a partner in the EPA National Partnership for Environmental Priorities program,” said Toby Gerhold, Vice President and General Manager of Rubicon. “We are committed to operating effectively with waste minimization and energy efficiency goals that are advantageous to both the company and the community.”

• Integrated Pollution Prevention and Control (IPPC) is a European regulatory system that employs an integrated approach to control the environmental impacts of certain industries. It involves determining the appropriate controls for industry to protect the environment through a single permitting process. All European Union sites covered by the IPPC Directive are required to hold a valid permit by October 31, 2007. All sites that are required to have such permits have either received them already, or are in the process of securing them.

• The Texas Commission on Environmental Quality (TCEQ) has determined that the Freeport Plant meets the criteria in the regulations to grant approval to the Clean Texas, Cleaner World Lone Star Leader program. Membership in the Clean Texas program is effective as of February 14, 2006. This is a voluntary program that demonstrates that the facility is going above and beyond compliance. Everyone at the plant has played a role in getting this recognition. Everyone has participated in identifying and training on the aspects of their job that impact

ISO 14000 Environmental Management Standard The International Organization for Standardization (ISO) 14000 series of standards is an international environmental management system standard designed to help facilities minimize harmful effects to the environment caused by their activities and achieve continual improvement of their environmental performance. ISO 14000 refers to a series of voluntary standards in the environmental field under development by ISO. Included in the ISO 14000 series are the ISO 14001 EMS Standard and other standards in fields such as environmental auditing, environmental performance evaluation, environmental labeling, and life-cycle assessment.

21

EHS Performance • Our Greatham, UK pigments facility successfully defended its “Commercial Site” Group Winner title in the 2006 BTO Challenge (British Trust for Ornithology), recording a total of 132 bird species on the site during 2006. Having now competed in six Challenges since 1994, this brings Greatham’s overall record to 4 “Group Winner” and 2 “Runner-up” titles. During each of the Challenges, the site has held a “Sponsored Bird Watch” over an eight hour period. These events have raised just over £16,000 ($32,000), to which the Teesmouth Bird Club have benefited to the sum of some £9,000 ($18,000).

• Huntsman’s Chennai, India Advanced Materials facility celebrated World Environmental day with the planting of about 200 tree saplings in a Green Belt just outside the facility grounds. It has been the practice of the facility to plant trees on the 5th of June every year to celebrate the day. The tree-planting activity began in year 2002 as a part of ISO 14001, Environmental Management System. Presently, total area of the site is 27 acres, of which 22% is reserved for developing a Green Belt. The current Green Belt tree population is around 4,400 trees, including Almond, Teak, Gulmahur, Neam, Eucalyptus, and others.

22

EHS Performance EMPLOYEE HEALTH & SAFETY – Performance Data Employee & Contractor Injuries & Illnesses

Huntsman facilities use the formula for recording performance for occupational injuries and illnesses that is recognized by OSHA. Rates are calculated based on the number of recordable injuries and illnesses for each 100 full-time associates and contractors per year, based on 2000 hours worked per employee and contractor per year. By applying the formula, Huntsman facilities can compare our rates with other industry’s large and small sites. An overall site rate is kept in lieu of a rate for Huntsman associates and a separate rate for contractors. By maintaining one combined rate, the importance of reducing injuries and illnesses is not diminished for either Huntsman associates or contractors and the rate reflects an overall truer performance.

(OSHA Recordable Rate) 4.0

OSHA Recordable Rate

3.5

Chemical Industry Average 2005 = 3.2

3.0 2.5 2.0 1.5 1.0 0.5 0.0

For the second successive year, the incidence rate for Huntsman and our contractors in 2006 remained below 1.0 at 0.8. This rate represents a reduction of 33% of injuries and illnesses since 2001 and is well below the

2001 Baseline

2003

2004

2005

2006

chemical industry average of 3.2 (Bureau of Labor Statistics – North American Industrial Classification System – Chemical Industry code #325). The sustained drop in rates over the last six years gives proof to Huntsman’s commitment to a proactive stance to reduce and eliminate occupational injuries and illnesses in the workplace. Proactive measures attributed to the reduction in the incidence rates include active engagement by Huntsman management, an aggressive audit and action plan program, EHS standards implementation and the administration of behavioral based safety processes in many of the Huntsman facilities. The programs allow for upstream performance measurements allowing associates to recognize activities that could lead to injuries and illnesses and take action to correct situations that may have led to incidents.

*Recordable Incident Rate = Number of Recordable Cases x 200,000 hours / Number of Hours Worked.

23

EHS Performance EMPLOYEE HEALTH & SAFETY – Health and Safety Accomplishments Success in health and safety is most often measured by injury and illness rates that are derived from the number of recordable injuries formulated into an industry standard. Without consistent, hard work for improvement, rates can fluctuate and most often exceed expectations. The continuous downward trend of rates that has been the experience of Huntsman sites across the globe, signify the dedication required for a successful health and safety program. This dedication to health and safety has created an environment for Huntsman employees and contractors to excel in enabling a workplace to be free of hazards and promoting safe behaviors for prevention of process safety and environmental incidents, injuries and illnesses. The effort put forth by associates has resulted in many accomplishments in 2006.

then assesses applicants against these criteria. Acceptance into VPP is OSHA’s official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health by meeting and exceeding OSHA standards. OSHA approves qualified sites to one of three programs based on their evaluation of extensiveness and maturity of each applicant site. The STAR designation is considered the highest achievement possible within the VPP. Of the Huntsman sites in the U.S. in 2006, thirteen sites have achieved and maintained VPP certification and two sites are preparing for certification. In addition to OSHA VPP, many of the states, including Michigan, offer similar programs. In 2006, the Huntsman, Marysville facility became the eighth company in the state to receive the prestigious SHARP Award for an exemplary safety and health management system.

Huntsman sites in the U.S. continue to excel in health and safety through the implementation of health and safety management programs recognized by OSHA. Many of the Huntsman U.S. sites are recognized by the OSHA Voluntary Protection Program (VPP) as “STAR” sites. Under the OSHA VPP program management, labor and OSHA establish cooperative relationships at workplaces that have successfully implemented a comprehensive safety and health management system. VPP sets performance-based criteria for a managed safety and health system, invites sites to apply and

The Michigan SHARP Program targets small, high-hazard employers to help them develop, implement and continuously improve the effectiveness of their workplace safety and health management system. SHARP provides an incentive for employers to emphasize accident and illness prevention by anticipating problems, rather than simply reacting to them.

Huntsman VPP certified facilities Site Auburn Hills – Michigan Chocolate Bayou – Texas Conroe – Texas Peru – Illinois Derry – New Hampshire Freeport – Texas Geismar – Louisiana

VPP Status Star Star Star Star Star Preparing for certification Star

Site VPP Status Lake Charles – Louisiana Star Longview – Texas Star Odessa – Texas Star Port Neches – Texas (Base Chemicals) Star Port Neches – Texas (Performance Products) Star Port Neches – Texas (PO/MTBE) Star Peru – Illinois Star

24

EHS Performance EMPLOYEE HEALTH & SAFETY – Occupational Health Program In 2006, the Huntsman Global Medical Department was formed under the direction of an occupational health physician located in The Woodlands, Texas. The Global Medical initiative was to bring together the best practices world wide and make this information available to our Huntsman associates while providing management access to world wide medical expertise. In order to better understand Global needs, many sites were visited to determine their medical needs and determine the resources available to Huntsman associates. Centralizing medical initiatives will allow for streamlined processes and the ability to standardize medical procedures to be globally the best in class. Based on international and U.S. business needs to provide for the overall health and safety of associates, an ambitious medical program has been developed for 2007. The position of a Global Corporate Nurse was added to oversee the medical program. Procedures for continued biological monitoring are being developed along with the building blocks of a universal health history and physical exam to assure each associate has the capacity to function safely and has the ability to be productive in their work setting.

25

EHS Performance EMPLOYEE HEALTH & SAFETY – Internal Huntsman Awards evaluated for the first annual award. The inaugural Forbes Award was presented to Huntsman’s RMAX Australia site for their innovative health and safety program, Backs to the Future. Honorable mention recognition was also presented to the Port Arthur, Texas and Odessa, Texas sites.

In order to encourage continued success in health and safety through recognition of those who make outstanding achievements, several of the Huntsman businesses have instituted awards programs. Base Chemicals & Polymers On January 28, 2005, Huntsman lost a valuable member of its EHS family when Mr. Billy D. Forbes II passed away unexpectedly due to natural causes. Billy was only 49 years old. He started his EHS career with Huntsman in February 1990 as a part of Texaco Chemical Company, which became part of Huntsman in 1994. Mr. Forbes was a long-time, well-respected environmental manager for the Company’s southeast Texas manufacturing operations. In June 2004, he relocated, with his family (wife Cindy and children Nicole and Sam), to the newly-established corporate offices in The Woodlands, Texas. In his corporate role, Billy took on the responsibility of Manager of America’s newlyestablished Center of Excellence. Billy's dedication and contribution to EHS excellence are greatly missed, but left a lasting inspiration to all Huntsman EHS associates.

Advanced Materials The President’s Award is an opportunity for an annual review of the Advanced Material business efforts to encourage behavioral safety at work by recognizing site accomplishments. The objective of the award is to encourage a global effort to improve behavioral safety, reinforce the importance of behavioral safety throughout Advanced Materials and recognize and reward best practices. Pamplona, Spain was one of 23 entries Advanced Materials received, all of which can be commended for their approach to safety. Says Advanced Materials President, Paul Hulme, “The ‘Don Prevencio - Mr. Safe’ initiative taken by Pamplona was selected the winner for this year due to its innovative and effective approach to behavioral-based improvements to safety. The team contributed successfully in bringing across a serious issue in a lighthearted way. The concept showed a great involvement and empowerment of everyone on site.” Congratulations to Pamplona, the winning team of the Advanced Materials President’s Award on Behavioral Safety 2006!

In 2006, in his honor, the Billy D. Forbes II Award for Environmental, Health and Safety Excellence was established for the purpose of recognizing, among the Base and Polymers plants, the finest example of excellence in natural resource conservation, health and safety innovation, environmental initiative, pollution prevention/waste minimization, or community outreach. In early 2006, sixteen applications were submitted and

Pigments In 2006, as part of the "LIFE 2006" program, an EHS summer competition called "Top 5 EHS" was launched, open to all employees within the Pigments business. This competition's challenge was to raise associate EHS awareness, at work or at home, during the summer period by soliciting five fundamental practices in each of four areas - Safety, Environment, Health/Hygiene, and

26

EHS Performance EMPLOYEE HEALTH & SAFETY – Internal Huntsman Awards Energy. Judging took place at the business' EHS Conference held in Calais, France in September 2006. The four recipients came from two Pigments sites Teluk Kalong (Safety and Health/Hygiene) and Grimsby, UK (Environment and Energy). Polyurethanes The 2006 President's Award for Responsible Care® was awarded to the Deer Park, Australia site for its project, "Regulatory Compliance Process for Sustainable Operations." In addition to the identification, management, and review of environmental requirements at the site, the Australia team worked closely with colleagues in China to customize and implement a process for regulatory compliance across China. And for the first time, the judges considered entries in the categories of "Innovation" (the recipient was Everberg, Belgium for its initiative to reduce energy consumption to minimize costs and reduce carbon dioxide emissions), "Involvement" (the recipient was Thane, India for its program to ensure distribution safety knowledge by third party transportation partners), and "Implementation" (the recipient was Ternate, Italy for its behavioral safety program titled "Clap for Safety"). Tony Hankins, President of the Polyurethanes Division and chairman of the judging panel, said that "all the entries we received showed exemplary performance in the various aspects of Responsible Care®, underlining the values that we hold so important in our business." Once again the standard of entries was high, and I believe this reflects our commitment to continuous improvement."

27

EHS Performance EMPLOYEE HEALTH & SAFETY – 2006 Milestones and Awards East Lansing, USA • Eight years without a lost time injury/illness

Mahachai, Thailand • 9 years without a lost time injury/illness • Health Prevention and Promotion Program in the Workplace Award

Duxford, UK • One year without a lost time injury/illness or recordable injury/illness

Thane, India • One million safe work hours and one year without a lost time injury/illness as of December 7, 2005

Barcelona, Spain • Two years without a lost time injury/illness

Shanghai, China • Twenty-nine million work hours without a lost time injury/illness during construction

Patrica, Italy • Four years without a lost time or recordable injury/illness

Panyu, China • Received ISO 14001 certification • Safety Excellence and Environmental Protection Excellence Award from local government Bad Saeckingen, Germany • Received ISO 14001 certification McIntosh, USA • Six years without a lost time injury/illness Kuan Yin, Taiwan • Twenty years without a lost time injury/illness

28

EHS Performance The following Huntsman manufacturing sites experienced no lost time or recordable injuries/illnesses during 2006 for all associates and contractors: Advanced Materials Bergkamen, Germany Chennai, India

Istanbul, Turkey Guandong (Panyu), China

Sadat City, Egypt Taboao da Serra, Brazil

Base Chemicals & Polymers Adelaide, Australia Auckland, New Zealand

Brisbane, Australia Bundaburg, Australia

Marysville, Michigan, USA Melbourne, Australia

Performance Products Barcelona, Spain Castiglione, Italy

Freeport, Texas, USA Patrica, Italy

Pensacola, Florida, USA Whitehaven, United Kingdom

Pigments Billingham, United Kingdom Grimsby, United Kingdom

Scarlino, Italy Teluk Kalung, Malaysia

Polyurethanes Auburn Hills, Michigan, USA Bangpoo, Thailand Buenos Aires, Argentina Cartagena, Columbia

Deer Park, Australia Deggendorf, Germany Kuan Yin, Taiwan Mexico City, Mexico

29

Mississauga, Canada Mumbai (Thane), India Shanghai, China Wilton, United Kingdom

EHS Performance and Accomplishments PROCESS SAFETY AND EMERGENCY RESPONSE In order to ensure that Huntsman facilities are designed, maintained, and operated in a responsible manner, EHS Standards have been established which require all of our facilities to implement basic process safety principles and emergency response programs. These Standards are aligned with industry practices, Responsible Care® Guiding Principles, and various international regulations applicable to Huntsman facilities.

• OSHA Process Safety Management (PSM) and EPA Risk Management Program (RMP) in the U.S.; • Seveso II in European Union countries; • Control of Major Accident Hazards (COMAH) in the UK; and • Major Hazard Facility (MHF) in Australia. Huntsman’s process safety programs include the following requirements:

Business and site-specific engineering standards are reviewed and updated as needed to incorporate new applicable regulations, in addition to the Huntsman EHS Standards. Applicable regulations include:

• Process design and documentation must be in accordance with good engineering practices; • Process hazard assessments must be conducted and detail the potential effects of an accidental release with risk minimization and mitigation (emergency response) plans; • Operating procedures that are clearly written and easy to use (such as check-list formats for start-up and shutdown sequences); • Training for operators and maintenance personnel (including contractor personnel); • Management of Change (MOC) and Pre-startup Safety Reviews (PSSR) which controls / governs changes to the processes; • Mechanical Integrity programs that ensure the safe maintenance of the process equipment; • Hot Work Permit programs which control heat sources in potentially flammable areas; • Emergency planning and response programs with capabilities of quickly mitigating potential hazards; and • Incident investigation programs which identify and correct root causes to process safety incidents that may occur. As a means of improving our process safety systems, Huntsman has recently formed a Global Process Safety Steering Team, and three regional teams. These teams will: • Develop global corporate guidelines and tools where additional standardization is needed; • Develop and provide process safety training;

30

EHS Performance Process Safety

• Establish and publish a network of process safety expertise; • Develop and implement a process safety focused audit program for Huntsman sites in Europe and Asia-Pacific regions (process safety audits have already been established in the U.S.); • Trial process safety audit program was conducted in Europe during 2006. The official auditing program for non-U.S. facilities will begin in 2007; • Review / revise process safety Key Performance Indicators (KPIs) to enhance the performance monitoring of process safety programs. • Ensure support and buy-in from each Huntsman region and business.

45 40

Number of Incidents

35 30 25 20 15 10 5

Huntsman began tracking process safety incidents in the U.S. in 1999 and at all Huntsman facilities globally in 2003. As shown in the chart, we experienced a 45% increase in process safety events in 2006 as compared to previous years. Of these, three were classified as fires/explosions, and 39 were classified as material releases to the environment. The primary increases in process safety incidents resulted at the Botany, Australia facility, and through the acquisition of the Textile Effects business.

0

1999 Baseline

2003 US

31

2004 International

2005

2006

EHS Performance PRODUCT STEWARDSHIP advocacy activities to support leveraged research for product-specific health and safety investigations.

At Huntsman, product stewardship is defined as an integrated business process for identifying, managing and minimizing the environmental, health and safety impacts at every stage of a product’s life cycle. It demonstrates our commitment to Responsible Care® through active assessment of our products from the product design and development, through sourcing of raw materials, manufacture, storage, packing, distribution and use, to eventual disposal. This involves working very closely with our customers, suppliers and others in the supply chain to ensure that they understand the EHS issues relating to our chemicals.

Product risk screening assessments are being performed by a Risk Assessment cross business team which has produced a “Risk Assessment Process Guideline” for this activity. The data gathering for these risk assessments will facilitate compliance with EU’s REACH (Registration Evaluation and Authorization of Chemicals) initiative, which requires a human and environmental hazard and exposure assessment of each chemical substance, and the documentation of the outcome in a “Chemical Safety Report.”

One key aspect of Huntsman’s strategy is to achieve and sustain a Product Stewardship culture in all businesses through the application of common principles. In order to meet this objective, we focus on product stewardship awareness. A Product Stewardship cross-business team has developed interactive awareness training packages containing examples and case studies from all businesses. Trainers nominated by each business have been trained by Global Product EHS in all regions and are conducting training sessions throughout their businesses. Product stewardship networks have been activated and developed as needed. Product stewards, who act as a first point of customer/supplier/contractor contact on Product EHS aspects in their respective business sector, have established local product stewardship programs.

Huntsman promotes good working relationships with its suppliers and customers, including the development of mutually acceptable product stewardship improvement goals, so that technical issues can be worked on jointly. An illustration of this was the organization of a Product Stewardship Management exchange seminar in China with Huntsman cross business suppliers. The participants were able to gain a greater understanding of the Product Stewardship expectation of Huntsman businesses and the importance of their meeting compliance standards for a sustained business relationship.

Huntsman initiates and participates in programs to assist other organizations, in addition to customers, within our industry to develop and communicate practices to enhance the safe handling and use of products we manufacture. Huntsman, for example, is actively involved in rolling out the “Walk the Talk” initiative aiming at improvement of behavioral safety in the Polyurethanes industry across the EU. We participate in trade association, research, and

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EHS Performance Product stewards and product stewardship experts are helping customers with their product EHS requests and involve the relevant Huntsman specialists as necessary. A specific Product EHS customer requests database has been created to coordinate these requests and sharing the information. In April 2006, Huntsman formed a new strategic business unit dedicated to the enhancement of the Company’s Green Chemistry initiatives. Our sustainable chemistry products include propylene carbonate based solvents that reduce toxicity in applications from agriculture to industrial cleaning agents, and catalysts that eliminate emissions from polyurethane insulation foams. In response to growing consumer interest in organic products, Huntsman now offers a wide range of dyes and chemicals approved for organic cotton. Our technical staff guide textile mills, apparel brands and retailers in understanding how to meet organic cotton classification requirements and processing standards with Huntsman products, and how to achieve the high levels of fabric performance that consumers expect.

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EHS Performance DISTRIBUTION To ensure that arrangements are in place to deal with distribution-related emergencies involving off-site storage and transport of Huntsman raw materials, products, and wastes, Huntsman has established Regional Distribution Emergency Response Centers (RDERC) and networks throughout the world. Where business and geographical needs dictate, Local Emergency Response Centers (LERC), delegated by the RDERC to handle specific response areas, have been established by the relevant business. These resources provide an initial point of contact during distribution incidents and act as a focal point for communication and coordination regarding control of the incidents.

We began tracking distribution incidents at all Huntsman facilities globally in 2003. Distribution safety incidents involve products, intermediates, or wastes owned by Huntsman while in transit to or from Huntsman manufacturing facilities, storage and distribution locations, suppliers or customers. Incidents may include property damage, spillage of materials, personnel injury, road closures, public evacuations, or other public disruption. Improving the transportation safety of chemicals is a high priority within Huntsman, and we are committed to reducing the risk associated with the distribution of chemicals to the general public, carriers, distributors, contractors, and employees and to the environment. We seek to provide our distributors with the information necessary to handle and manage our products safely. For the years 2004 through 2006 we have seen a decrease in the overall number of transportation incidents. We attribute this to an increased awareness to detail during the loading and preparation of all shipments for transport.

Transportation Safety 100 90

Number of Incidents

80

Huntsman businesses and sites are developing and implementing distribution risk assessment methodologies, as required by our Global EHS Standards. Through these distribution risk assessments we will identify and reduce the risks associated with all our distribution activities. The risk assessments consider the security, hazards, and likelihood of release and exposure at all relevant stages in the distribution process, including incoming chemical raw materials, offsite movement of intermediates, outgoing products, warehousing and storage. As appropriate, the views of relevant third parties in the distribution chain are assessed and considered in the risk assessments. Assessments are performed prior to receipt or transport of new chemical materials and are reviewed before implementing any changes in packaging or other distribution arrangements.

70 60 50 40 30 20 10 0

2003

2004 Incidents

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2005 Significant Incidents

2006

EHS Performance SECURITY Site security is a top priority for Huntsman. The importance of security was recognized by the chemical industry long before the terrorist events of September 11, 2001. Huntsman has always considered the security of our sites, associates and communities of paramount importance and has voluntarily put many security measures in place to address any potential security concerns.

5. Documentation. Documentation of security management programs, processes and procedures. 6. Training, Drills and Guidance. Training, drills and guidance for associates, contractors, service providers, value chain partners and others, as appropriate, to enhance awareness and capability. 7. Communications, Dialogue and Information Exchange. Communications, dialogue and information exchange on appropriate security issues with stakeholders such as associates, contractors, communities, customers, suppliers, service providers and government officials and agencies balanced with safeguards for sensitive information. 8. Response to Security Threats. Evaluation, response, reporting and communication of security threats as appropriate. 9. Response to Security Incidents. Evaluation, response, investigation, reporting, communication and corrective action for security incidents. 10. Audits. Audits to assess security programs and processes and implementation of corrective actions. 11. Third-Party Verification. At chemical operating facilities with potential off-site impacts, third-party companies have implemented physical site security measures to which they have committed. 12. Management of Change. Evaluation and management of security issues associated with changes involving people, property, products, processes, information or information systems. 13. Continuous Improvement. Continuous performance improvement processes entailing planning, establishment of goals and objectives, monitoring of progress and performance, analysis of trends and development and implementation of corrective actions.

We have implemented procedures and controls at our offices and manufacturing sites consistent with the Responsible Care® Security Code of Management Practices. The Responsible Care® Security Code includes thirteen practices that are designed to help protect people, property and environment, products, processes, information and information systems by enhancing security, including security against potential terrorist attack, in all activities pertinent to the safe operation of our business. These practices are: 1. Leadership Commitment. Senior leadership commitment to continuous improvement through published policies, provision of sufficient and qualified resources and established accountability. 2. Analysis of Threats, Vulnerabilities and Consequences. Prioritization and periodic analysis of potential security threats, vulnerabilities and consequences using accepted methodologies. 3. Implementation of Security Measures. Development and implementation of security measures commensurate with risks, and taking into account inherently safer approaches to process design, engineering and administrative controls, and prevention and mitigation measures. 4. Information and Cyber-Security. Recognition that protecting information and information systems is a critical component of a sound security management system.

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EHS Performance Specific security practices implemented within Huntsman include:

Huntsman maintains daily contact with the U.S. Department of Homeland Security to ensure that we have current information on potential terrorist activities that may affect our facilities around the world.

• Improvements in security lighting and fencing at our sites; • Installation of continuous motion or intrusion detection systems; • Prohibition of storage and/or parking of any portable equipment, including vehicles, adjacent to potential targets; • Performance of photo identification checks of all contractors and visitors to the sites; and • Upgrades to railroad gates accessing manufacturing facilities.

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EHS Performance COMMUNITY AWARENESS At Huntsman, we believe we have a duty to give back to society, and to help those who are less fortunate. To that end, we strive to make life better for people around the world by supporting initiatives that further educational programs and provide relief to the homeless, abused and victims of disasters.

the local community, suppliers, customers, investors, government and regulators and other community and trade organizations. Our outreach activities, which have allowed for effective dialogue and involvement, include the following initiatives:

Further, we encourage all of our employees worldwide to become involved in their communities, to give of their time and other resources to improve the quality of life in the cities and towns where Huntsman has a presence. Most sites have formed Community Care Committees, comprised of Huntsman employees, to evaluate and respond to opportunities for community service.

• Participating on local community liaison panels, where issues of concern are discussed and actions are agreed upon to respond to them positively and constructively; • Establishing and building positive working relationships with local elected officials, representatives from regulatory authorities, local emergency services and citizen advisory groups; • Communicating regularly through scheduled meetings, newsletters and media relations; and • Providing leadership in chemical industry associations.

For Huntsman, being a good corporate citizen begins with the creation and maintenance of effective channels of communication with external stakeholders including

“We will place into society assistance for those who suffer, hope for those who may need inspiration, and education for those who may feel the challenge but do not have the means.” — Jon M. Huntsman

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EHS Performance This communications commitment has proven effective for the company as well as the community. For example, for the past decade in Holland, Huntsman has actively participated in the community advisory panel “Samen Werken & Wonen” (Living & Working Together). This year the panel, chaired by the local mayor, celebrated 10 successful years of cooperation between the industry and the local community. This is but one example of Huntsman’s community partnership. There are many others. • Huntsman employees at the Wilton International site in the United Kingdom have been instrumental in raising the profile of this multi-company site by planning, organizing and developing a visitor’s center and hosting “Children Challenging Industry” visits in coordination with York University and the North East Process Industry Cluster (NEPIC). • At the Grimsby site in England, employees continue to represent the company on the local Community Liaison Committee and this year assisted in updating and reissuing the Major Emergency Advice booklet provided to all households and businesses in the community. • The Teluk Kalung, Malaysia site hosted a public question and answer session about the safe handling of tetra chloride. All participants, including government and community officials, appreciated the opportunity to learn more and proposed additional sessions in the future. • In Bergkamen, Germany, the Huntsman site hosted its annual “Open Day for the Chemical Industry” and had more than 3,000 individuals from the community take the opportunity to learn more about the chemical industry.

notification, and evacuation strategy and pipeline safety. Company officials also arranged for a former Texas Commission on Environmental Quality (TCEQ) commissioner and representatives of URS, an independent environmental contractor, to speak and answer questions at a community meeting on emissions.

• At the Port Arthur site in the United States, the company hosted a community meeting to discuss a major fire at the Port Arthur Base Chemicals (PABC) complex and answer questions on emissions,

But community involvement doesn’t stop at the doors to our sites. Huntsman employees can be regularly found working in the community on issues important to local residents.

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EHS Performance Supporting and Improving Education

• Several Huntsman sites also host seminars, workshops and conferences to further the interests of the industry. For example, the corporate office hosted the National Petrochemical & Refiners Association’s (NPRA) Science Teachers Enhancement Program (STEP) at the Huntsman Advanced Technology Center in The Woodlands, Texas. The company also sponsored four local middle school teachers to attend the program.

The strength of the local economy, the quality of our work force, the vitality of communities where Huntsman sites are located and the productivity and well-being of citizens in general depend on an education system that provides people of all ages with the knowledge and skills they need to live, learn and work in a changing world. Huntsman aims to ensure a quality education for today’s students by providing financial support and technical assistance and expertise.

• This year Paul Hulme, President of Materials and Effects, signed scholarship agreements with two of China’s top schools, Dong Hua University and Shanghai University of Engineering Science. These scholarships will enable textile students who may not otherwise be able to afford a higher education, pursue their career dreams. The Port Neches, Texas, site also provides technical scholarships to students pursuing Process Operation or Instrumentation certification.

• In Umbogintwini, South Africa, Huntsman remains committed to improving and developing the local community. This site raised money to improve infrastructure and provide needed equipment, books and other stationary items to schools that sorely needed the assistance. This site also demonstrated a unique entrepreneurship by teaming with other Huntsman sites. For example, other Huntsman sites from around the world campaigned to collect books and craft materials, which resulted in six pallets of products for Umbogintwini schools.

• On December 22, 2006 the first award from Huntsman Advanced Materials (Guangdong) Co. Ltd. was presented to the five best students at the Material Science and Engineering College of South China University of Technology, which is listed among the top twenty universities of China. Peter Littlewood, Vice President of Huntsman Advanced Materials, attended the award ceremony on behalf of Huntsman. • Many Huntsman sites also adopt schools to provide supplies, equipment, employee volunteers, student recognition programs, sponsorship for robotics teams, and support special programs for disadvantaged or special needs children and the arts.

• It’s not always books, school supplies and computers that are needed to further the education of local children. Sometimes, the buildings or playgrounds need improvements. Such was the case in Thailand where Huntsman built a roof and floor for a playground at Wat Klong Kao School and a floor for Klong Charoen Ratch School.

Providing Leadership, Support and Relief Consistent with the company mission and values to assist those who suffer and provide hope for those who may need inspiration, Huntsman’s community

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EHS Performance service is guided by the specific needs of the individual communities and employees’ interest in charitable causes. The charitable causes Huntsman supports are as varied as the communities in which we operate. A partial list of charities include AIDS Awareness, ALS Association, the American Cancer Society, American Heart Association, Angel Flight, Arrow Project/Michael Reagan Center, Beverley School for Autism in the UK, Caring Parents of Geismar in Louisiana, food banks, Give2theTroops Campaign, homeless shelters, Juvenile Diabetes Association, KwaMakhutha Rape Crisis Center in South Africa, local law enforcement agencies, March of Dimes, Markers for Munchkins, Mothers Against Drunk Driving, Motor Neuron Disease Association, Multiple Sclerosis, Operation Hope, Port Cities Rescue Mission, Salvation Army, Special Olympics, United Way, women’s shelters and Zoe’s Place.

significant role in providing assistance following Atlantic hurricanes Katrina and Rita and the Asian tsunami in 2005. However, rebuilding continued into 2006 and Huntsman was still lending a hand. The Port Neches site was instrumental in forming and funding Rebuilding Together SETX (Southeast Texas), an organization created to repair homes of elderly and disabled hurricane victims. This site also made a major financial contribution to the Port Cities Rescue Mission to help make hurricane related repairs. Huntsman was also represented by an employee serving on the board of the Southeast Texas Emergency Relief Fund, which solicited and administered donations for the hurricane rebuilding effort. Finally, the McIntosh, Alabama site provided a building to store FEMA-funded generators and supplies for hurricane preparedness.

Huntsman employees are known for their generosity. For example, when the Everberg, Belgium site won the Responsible Care® Award for Innovation, they donated the cash award to a local day care center for disabled children. The Wilton, UK site has also implemented a similar program where business improvement teams donate their financial rewards for achievement to local charities. Individual employees have even gone to great lengths to raise money for local causes and charities. Huntsman employees from the Greatham, UK and Wilton International sites, for example, have participated in charity walks, runs and rides, and one individual even shaved his head for charity.

This is just a small portion of Huntsman’s community service effort historically and around the globe. A strong social responsibility is integral to the company’s mission and values, so this global manufacturer and marketer of differentiated and commodity chemicals will continue to be an active corporate citizen. After all, our community is our future.

Huntsman also has a long history of pitching in when disasters strike. Most recently Huntsman played a

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EHS Performance THE HUNTSMAN CANCER INSTITUTE On October 2, 1995, the Huntsman family joined in an unparalleled scientific quest to prevent, diagnose and treat cancer at its source by donating $100 million to establish the Huntsman Cancer Institute (HCI) at the University of Utah. The Huntsman Cancer Institute’s mission is to provide the very best care, to make diagnosis and the latest treatment available to more people, and ultimately to reduce the tremendous burden of cancer for patients and their families worldwide. On April 26, 2000, Jon Huntsman pledged an additional $125 million to fund on-going research and to construct a Cancer Research Hospital adjacent to the Institute. These donations, along with subsequent gifts and grants, have helped HCI build a team of world-renowned specialists and to provide treatment services unparalleled in the region.

The Institute is committed to discovering genetic and molecular solutions that will prevent cancer development in its earliest stages, and to provide innovative therapies for all types of cancer. In addition to researching genetic functions, HCI’s specialists develop strategies to reduce cancer incidence and implement therapies to treat diagnosed cancers. Research programs at HCI are designed to encourage an exchange of information across traditional scientific boundaries in order to make it easier for doctors and scientists to work together efficiently. This collaborative approach makes HCI one of the leading cancer research organizations in the world.

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10003 Woodloch Forest Drive The Woodlands, Texas 77380 281-719-6000 Huntsman Advanced Technology Center 8600 Gosling Road The Woodlands, Texas 77381 281-719-7400

www.huntsman.com/ehs

NYSE: HUN ©2007 HUNTSMAN CORPORATION