CTA Acoustics v. Borden Chemicals

CTA Acoustics, Inc. today announced
that a jury in the Circuit Court of Laurel County, Kentucky has found
Borden Chemicals 100 percent liable for the explosion and fire that killed
seven employees at the CTA Acoustics plant in Corbin, Kentucky on February
20, 2003.

"We are very gratified that the jury has found Borden 100 percent
liable for this tragedy," said CTA Chairman and CEO James J. Pike. "The
jury clearly understood that the phenolic resin sold by Borden was
similarly involved in a deadly explosion at the Jahn Foundry in
Springfield, Massachusetts on February 25, 1999 in which three people were
killed and nine people were injured. Following that tragedy, Borden failed
to notify any of its customers or to change the classification of their
phenolic resin on their Materials Safety Data Sheet (MSDS) or to change
their labeling to indicate the explosive characteristics of their phenolic
resin powder," said Pike.

"While we are gratified that the jury has vindicated CTA, we cannot
help but feel a deep and continuing sense of loss for our seven employees
and our other employees who were injured. We believe in the community and
have tried to honor the community by remaining here in southeast Kentucky,
building twin new plants, and continuing to provide good jobs to the people
of this area," said Pike.

Overcoming the loss of its plant in the explosion and the subsequent
defection of its key customer, CertainTeed, the management of CTA
immediately identified a new site and within one year constructed and
equipped new twin 125,000 sq. ft. manufacturing plants at their new
facility in Corbin, Kentucky. CertainTeed, which had built the original CTA
plant, has since left the region and constructed a new facility in Sherman,
Texas.

CTA Acoustics is a leading supplier of acoustical and thermal
insulation products to the automotive and construction industries. Despite
a downturn in the automotive industry, the company has relied upon its
Corbin workforce and innovative technologies to gain Nissan and
DaimlerChrysler as new customers and to continue its business with Ford and
increase its business with General Motors. The employment level at the CTA
facility has returned to nearly 500 people.

"We have had some incredibly tough times, but with the support of our
people and the entire community we have persevered and are steadily making
our way back, but we will never forget losing those seven people," said
Pike.

SOURCE CTA Acoustics, Inc.