NOVA Chemicals Announces Plan to Expand Joint Venture With INEOS to North America

    PITTSBURGH, March 22 /CNW/ - NOVA Chemicals Corporation
(NYSE:  NCX)(TSX:NCX) today announced it has signed a letter of intent with
INEOS to expand the two companies' existing European joint venture to include
North American assets. Under the terms of the proposed agreement, the newly
expanded 50:50 joint venture will include NOVA Chemicals' STYRENIX unit and
other styrenic polymer assets. The STYRENIX unit includes NOVA Chemicals'
North American styrene and solid polystyrene assets, as well as the company's
interest in the existing European joint venture with INEOS, called NOVA
Innovene. INEOS will contribute its North American styrene and polystyrene
assets, as well as its interest in the existing NOVA Innovene European joint

    The expanded joint venture will also include solid polystyrene-based
NAS(R), ZYLAR(R) and DYLARK(R) polymers from NOVA Chemicals and the AVANTRA(R)
specialty products of INEOS.

    "We are very pleased with this path and believe this larger, stronger JV
will quickly build on the success of our recent work with INEOS in Europe. It
provides a clear opportunity to significantly reduce costs and participate in
industry consolidation," said Jeffrey M. Lipton, President and CEO of NOVA
Chemicals. "We expect the expanded JV to add value for our shareholders and we
will continue to look for further consolidation opportunities."

    The transaction to form the expanded joint venture is expected to close
in the third quarter of 2007, subject to approvals and completion of
definitive agreements. The expanded venture is expected to have revenues of
approximately U.S. $3.5 billion per year. Upon completion, the newly expanded
joint venture is expected to have the following capacity rankings:


    Styrene                                      #1          -         #5
    Solid Polystyrene                            #1         #2         #2
    Expandable Polystyrene                        -         #1         #4

    NOVA Chemicals will retain full ownership of its olefins/polyolefins
unit, industry-leading North American expandable polystyrene business,
ARCEL(R) advanced foam resin, and new expandable polystyrene-based business

    NOVA Chemicals produces plastics and chemicals that are essential to
everyday life. Our employees develop and manufacture materials for customers
worldwide that produce consumer, industrial and packaging products. NOVA
Chemicals works with a commitment to Responsible Care(R) to ensure effective
health, safety, security and environmental stewardship. Company shares are
traded on the Toronto and New York stock exchanges as NCX. Visit NOVA
Chemicals on the Internet at

    Photographs, maps and graphics are available upon request.

    Forward-Looking Information

    The information in this news release contains forward-looking statements,
including statements regarding: the assets that NOVA Chemicals and INEOS will
contribute to the expanded joint venture; NOVA Chemicals' beliefs that a
larger, stronger joint venture will quickly build on the success of NOVA
Chemicals' recent work with INEOS in Europe and that the expanded joint
venture provides a clear opportunity to significantly reduce costs and
participate in industry consolidation; NOVA Chemicals' expectation that the
expanded joint venture will add value for NOVA Chemicals' shareholders; the
expected closing date for the transaction to form the expanded joint venture;
the expected revenues of the expanded joint venture; and the expected capacity
rankings of the expanded joint venture. By their nature, forward-looking
statements require NOVA Chemicals to make assumptions and are subject to
inherent risks and uncertainties. There is significant risk that predictions,
forecasts, conclusions and projections will not prove to be accurate, that
NOVA Chemicals' assumptions may not be correct and that actual results may
differ materially from such predictions, forecasts, conclusions or
projections. Some of the risks that could affect NOVA Chemicals' future
results and could cause results to differ materially from those expressed in
the forward-looking statements include: uncertainties regarding commodity
chemicals price levels (which depend, among other things, on supply and demand
for these products, capacity utilization and substitution rates between these
products and competing products); feedstock availability and prices; operating
costs; starting up and operating facilities; the impact of competition;
uncertainties associated with the North American, South American, European,
and Asian economies and other risks detailed from time-to-time in the publicly
filed disclosure documents and securities commissions reports of NOVA
Chemicals. NOVA Chemicals' forward-looking statements are expressly qualified
in their entirety by this cautionary statement. In addition, the
forward-looking statements are made only as of the date of this news release,
and except as required by applicable law, NOVA Chemicals undertakes no
obligation to publicly update these forward-looking statements to reflect new
information, subsequent events or otherwise.

    Responsible Care(R) is a registered trademark of the Canadian Chemical
Producers Association (CCPA) in Canada and is a registered service mark of the
American Chemistry Council (ACC) in the United States.

    ARCEL(R), DYLARK(R) and NAS(R) are registered trademarks of NOVA
Chemicals Inc.

    ZYLAR(R) is a registered trademark of NOVA Chemicals (Canada) Ltd./NOVA
Chimie (Canada) Ltee.; authorized use/utilisation autorisee.

    AVANTRA(R) is a registered trademark of INEOS.

    NOTE TO EDITORS: There is an accent mark above the first e in "Ltee" and
the second e in "autorisee." This symbol may not appear properly in some

For further information:

For further information: NOVA Chemicals media inquiries, please contact:
Stephanie Franken, 412-490-4292 Manager, Public Affairs E-mail: or NOVA Chemicals Investor Relations inquiries, please
contact: Chris Bezaire, 412-490-5070 Vice President, Investor Relations
E-mail: OR INEOS media inquiries, please contact:
Ed Barnes, 815-423-1208 Vice President E-mail:

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