WILTON, Conn. — GE Specialty Materials, a unit of General Electric Co., has entered into an agreement to acquire OSi Specialties from Crompton Corp. OSi will become part of GE Silicones, a division within GE Specialty Materials with 2002 revenues of $1.2 billion. The transaction is expected to close in the third quarter of 2003. Upon closing, Crompton will receive $645 million in cash and GE’s Specialty Chemicals business.

According to William A. Woodburn, president and CEO of GE Specialty Materials, “We are focusing our investment in platforms where we can win and grow for the long term. Selling our smaller Specialty Chemicals unit to the Crompton team will enable it to be part of a larger additives organization where it can win over the long term.”

OSi Specialties pioneered silane and specialty silicone technology, and is a leading global supplier of organofunctional silanes — products that GE does not currently offer. The advanced silane technology acts as a coupling agent in applications for adhesives, sealants, coatings, thermoplastics and fiberglass.