May 15, 2008

Gaylord Chemical Company, LLC is announcing an <$.08 per pound> price increase, effective July 1, 2008, or as contracts permit, for Dimethyl Sulfoxide (DMSO): Industrial Grade, Pharma Solvent Grade, Lignin Certified Grade, ACS-R and all Electronic Grades. The price adjustment will be for both drum and bulk quantities.

Gaylord Chemical is increasing prices due to a dramatic increase in the cost of sulfur and sulfur based intermediates, major components in the production of DMSO. The increase in sulfur pricing is due to shortages on the supply side, primarily caused by delays in several large refinery projects and operating problems at a number of facilities. On the demand side, sulfur in the U.S. is utilized primarily to produce fertilizer, which is in high demand due to growth in biofuels and strong demand for food in Asia. This has lead to unexpected and unprecedented increases in sulfur prices.

As indicated by the chart below, sulfur prices have increased by approximately 900% in the last 9 months. Additionally, the Green Markets’ Tampa price shown below has lagged the Asian market price by approximately $ 200/long ton over this period. While the expectation is that sulfur pricing will stabilize later in the year, it is likely that the U.S. market price will move towards the Asian market price, and higher costs for sulfur will remain for some time. Despite a diligent effort on the part of all of our employees to control costs, Gaylord Chemical has experienced significant margin erosion due to higher sulfur pricing, as well as higher transportation and energy costs.

We thank you for your understanding and your ongoing business relationship with Gaylord Chemical. Our employees and management remain committed to providing you with the highest quality DMS and DMSO available in the world, coupled with the continued world-class scientific support you have come to expect from Gaylord Chemical.

If you have any questions or comments, please contact your Sales Representative or call Paul Dennis (President and CEO) directly at (985) 639-5624.