For Any and All 12.000% Senior Discount Notes Due 2014 Issued by Polymer Holdings LLC and Polymer Holdings Capital Corporation
HOUSTON, TX -- (MARKET WIRE) -- 04/24/2006 -- Polymer Holdings LLC ("Holdings") and its wholly owned subsidiary, Kraton Polymers LLC ("Kraton") announce the commencement of a cash tender offer for any and all of the outstanding $150,000,000 aggregate principal amount at maturity of the 12.000% Senior Discount Notes (CUSIP Number: 731753AB5) (the "Notes") previously issued by Holdings and Polymer Holdings Capital Corporation ("Capital," together with Holdings, the "Companies"), on the terms and subject to the conditions set forth in their Offer to Purchase and Consent Solicitation Statement dated April 24, 2006 (the "Offer"). The Companies are also soliciting consents for amendments (the "Proposed Amendments") to the indenture under which the Notes were issued (the "Indenture"). The Proposed Amendments include elimination of substantially all of the restrictive covenants, certain events of default and certain other provisions contained in the Indenture. Holders tendering their Notes will be required to consent to the proposed amendments and holders consenting to the amendments will be required to tender their Notes. Consummation of the Offer is subject to the satisfaction of a number of conditions, including, among others, receipt of consents from holders of a majority in principal amount at maturity of the outstanding Notes (the "Requisite Consents") and the consummation of a refinancing by Kraton, whereby Kraton's existing term loan facility will be amended to provide for, among other things, a new $365 million term loan facility (the "Kraton Refinancing"), resulting in an increase of approximately $103 million in its senior secured debt. The Companies are planning to fund the purchase of the Notes with proceeds from the Kraton Refinancing and existing cash balances. The Notes effectively rank junior to all existing and future debt of Kraton; therefore, the increase in Kraton's senior secured debt will reduce the amount of assets available to holders of notes in the event of a liquidation or reorganization of Kraton.

The Offer will expire at 9:00 a.m., New York City time, on May 22, 2006, unless extended or earlier terminated by the Companies (such date and time, as they may be extended, the "Expiration Time"). The consent solicitation will expire at 5:00 p.m., New York City time, on May 5, 2006, unless extended by the Companies (such date and time, as they may be extended, the "Consent Payment Deadline"). Holders of Notes must tender their Notes prior to the Consent Payment Deadline to receive the total consideration, which will be $860 for each $1,000 principal amount at maturity of the Notes accepted for payment. Holders of Notes must tender their Notes at or prior to the Expiration Time to receive the tender offer consideration, which will be $810 for each $1,000 principal amount at maturity of the Notes accepted for payment. The total consideration is the sum of the tender offer consideration plus a consent payment of $50 per $1,000 principal amount at maturity of Notes accepted for payment. Prior to satisfaction of the conditions to the Offer, the Companies may amend, extend or terminate the tender offer and consent solicitation at any time without making payments with respect thereto.

Notes and related consents may be withdrawn prior to the time (the "Withdrawal Deadline") when the Companies receive the Requisite Consents and execute a supplemental indenture implementing the amendments. Notes may not be withdrawn after the Withdrawal Deadline.

On, or on a date promptly following, the receipt by the Companies of the Requisite Consents and satisfaction or waiver of certain conditions, the Companies will accept all Notes validly tendered and not validly withdrawn prior to the Consent Payment Deadline and holders of Notes so tendered and not withdrawn will receive the total consideration for Notes so tendered and not withdrawn. On, or on a date promptly following the Expiration Time unless extended by the Companies, the Companies will accept all Notes validly tendered and not validly withdrawn after the Consent Payment Deadline but prior to the Expiration Time, and holders of Notes so tendered and not withdrawn will receive the tender offer consideration.

Goldman, Sachs & Co. is the dealer manager for the Offer. Questions regarding the transaction should be directed to Goldman, Sachs at (800) 828-3182 (Toll Free) or (212) 357-7867. Request for documents should be directed to Global Bondholder Services Corporation, the Information Agent, at 65 Broadway, Suite 704, New York, NY 10006, (866) 470-3800 (Toll Free) (banks and brokerage firms please call (212) 430-3774).