Melamine Chemicals, Inc.

After three years of losses, Melamine has now posted seven straight quarters of profit. We believe Melamine Chemicals is strongly positioned to continue their solid earnings growth.
Increases in the price of Melamine in 1Q 96 will have a positive effect on 1996 earnings. World ammonia prices, which drive urea and melamine prices, are high, but steady, and offer some stability for future melamine pricing.
Construction of a new MII plant in Memphis, Tennessee will increase capacity by 63% and improve profit margins. This plant will be profitable in its first year of operation as Melamine has an agreement to sell a portion of the output to a major U.S. chemical company.
Melamine has no long-term debt and should be able to internally finance expansion projects and improvements to plants and equipment.
Improved economic conditions in major international markets should increase demand for melamine world wide.