Nova Chemicals Agrees to Buyout by International Petroleum

International Petroleum Investment Company (“IPIC”) and NOVA Chemicals Corporation (TSX: NCX, NYSE: NCX) announced today that they have entered into an agreement (the “Arrangement Agreement”) providing for the acquisition by IPIC of all of NOVA Chemicals’ outstanding shares, (the “Shares”) for a cash consideration of US$6.00 per Share. The acquisition will be implemented by way of a court-approved plan of arrangement under the Canadian Business Corporations Act (the “Arrangement”).

Benefit to stakeholders
The Arrangement is intended to enable NOVA Chemicals to meet all of its obligations to all of its stakeholders and will strengthen NOVA Chemicals’ balance sheet so that its strong assets will continue to operate and expand. As part of the Arrangement, IPIC has agreed to a US$250 million credit backstop facility (the “Credit Agreement”) to provide NOVA Chemicals with sufficient liquidity.

Not only will the Arrangement provide stability to NOVA Chemicals and deliver significant benefits to the operations, employees, suppliers and stakeholders of the company, but it will also provide an opportunity to grow on the international stage. IPIC appreciates the high quality of NOVA Chemicals management and looks forward to working with the senior management team for the continued success and long-term growth of the company.