Synalloy Corporation Announces Sale Of Its Pigment Dispersion Business

Synalloy Corporation, a producer of specialty chemicals, stainless steel pipe, vessels and process equipment, announces that on March 6, 2009, the Company entered into a Purchase Agreement to sell the pigment dispersion business of Organic Pigments, LLC ("OP"). The sale includes substantially all of OP's assets for a purchase price approximately equal to their net book value as of the date of sale, and any gain or loss resulting from the disposition will not be material. As part of the

Agreement, the Company will continue to toll manufacture pigments for a transitional period of up to one year. OP will continue to produce and sell chemical dispersions utilizing some of its existing equipment, and is attempting to introduce new chemical dispersions directed at the latex and rubber industries, as well as other selected targeted customers. Management believes that divesting the pigment dispersion business will free up resources and working capital allowing them to focus on activities more in line with the remaining specialty chemicals operations.

For more information about Synalloy Corporation, please visit our web site at www.synalloy.com.

SOURCE: Synalloy Corporation