Joseph D. Rupp, Chairman, President, and Chief Executive Officer said, "For the third consecutive quarter Winchester achieved the highest level of earnings in its history, reflecting the combination of seasonally strong sales, the continuation of the stronger than normal demand that began in the fourth quarter of 2008, and lower costs. Winchester's earnings more than doubled in the third quarter of 2009 compared to the third quarter of 2008 driven by commercial sales which increased 22% year-over-year, and improved costs.

"Chlor Alkali segment earnings of $3.9 million exceeded our expectations of a loss in the quarter due to improved pricing and higher volumes. As expected, Chlor Alkali earnings were significantly lower than last year due to lower ECU netbacks and lower volumes. Chlor Alkali sales declined 37% in the third quarter of 2009 compared to the third quarter of 2008. This decline reflects both lower shipment volumes and lower prices. Chlorine and caustic soda shipment volumes declined 20% year-over-year. ECU netbacks in the third quarter of 2009 declined 43% compared to the third quarter of 2008. Third quarter 2009 earnings include $44.3 million of pretax recoveries from third parties for environmental costs incurred and expensed in prior periods, and a $4.6 million pretax reduction in selling and administration expenses associated with the favorable resolution of a capital tax matter in Canada.

"Fourth quarter earnings are forecast to be in the $0.15 per diluted share range, which includes an expected $35 million of additional recoveries from third parties for environmental costs incurred and expensed in prior periods. Fourth quarter 2009 Chlor Alkali earnings are expected to be similar to the third quarter of 2009 as higher ECU netbacks are expected to offset seasonally weaker demand. Earnings in the Winchester segment are expected to decline significantly from the third quarter due to seasonally weaker demand, but are expected to exceed fourth quarter 2008 earnings. Winchester expects fourth quarter 2009 demand to be stronger than historic fourth quarter levels."

SEGMENT REPORTING

We define segment results as income (loss) before interest expense, interest income, other income, and income taxes and include the results of non-consolidated affiliates in segment results consistent with management's monitoring of the operating segments.

CHLOR ALKALI PRODUCTS

Chlor Alkali Product sales for the third quarter of 2009 were $228.8 million compared to $362.1 million in the third quarter of 2008. The third quarter 2009 sales reflect a 20% decline in chlorine and caustic soda volumes. Volumes for potassium hydroxide and hydrochloric acid declined by 11% and 39%, respectively, during the third quarter of 2009 compared to the third quarter of 2008, while volumes for bleach increased 21% compared to third quarter 2008 levels. ECU netbacks in the third quarter of 2009 declined by 43% compared to the third quarter of 2008. Freight costs included in the ECU netbacks increased 8% in the third quarter of 2009 compared to the third quarter of 2008. Third quarter 2009 Chlor Alkali segment income was $3.9 million compared to $104.3 million in the third quarter of 2008. The decrease was due to lower prices and lower volumes.

WINCHESTER

Winchester third quarter 2009 sales were $168.2 million compared to $140.8 million in the third quarter of 2008. The increase primarily reflects higher sales volumes. Commercial and military sales increased during the quarter which more than offset declines in law enforcement and industrial sales. Winchester's third quarter 2009 segment income was $23.0 million compared to $9.8 million in the third quarter of 2008. The increase in segment income reflects the higher sales volumes, lower commodity and other material costs, and favorable pricing.

CORPORATE AND OTHER COSTS

Pension income included in the third quarter 2009 Corporate and Other segment was $6.3 million, compared to income of $5.2 million in the third quarter of 2008.

Third quarter credits to income for environmental investigatory and remedial activities were $38.8 million in 2009, which includes the $44.3 million pretax recoveries of costs incurred and expensed in prior periods. Without these recoveries, charges to income for environmental investigatory and remedial activities would have been $5.5 million in the third quarter of 2009 compared to $6.4 million in the third quarter of 2008. These charges relate primarily to remedial and investigatory activities associated with former waste sites and past operations.

Other corporate and unallocated costs in the third quarter of 2009 increased from the third quarter of 2008 due to mark-to-market adjustments associated with incentive compensation and higher legal and legal-related expenses, partially offset by the favorable impact of the resolution of the capital tax matter in Canada. Mark-to-market adjustments associated with incentive compensation increased $6.1 million compared to the third quarter of 2008. The legal and legal-related expenses are primarily associated with legacy environmental matters and legal settlements.

CASH FLOW

Cash and cash equivalents increased from $192.2 million at June 30, 2009 to $376.6 million at September 30, 2009. The increase in cash reflects the proceeds from the $150 million ten-year note offering that was completed during the quarter, and a $13.6 million decrease in working capital. The working capital decrease includes the impact of a receivable associated with the environmental recoveries recorded in the third quarter, which will be received in the fourth quarter. These were partially offset by capital spending during the quarter of $34.7 million, which exceeded depreciation of $17.1 million.

DIVIDEND

On October 22, 2009, Olin's Board of Directors declared a dividend of $0.20 on each share of Olin common stock. The dividend is payable on December 10, 2009 to shareholders of record at the close of business on November 10, 2009. This is the 332nd consecutive dividend to be paid by the Company.

CONFERENCE CALL INFORMATION

The Company's third quarter earnings conference call with securities analysts is scheduled for 10:00 A.M. Eastern Time, Tuesday, October 27. The call will feature remarks by Joseph D. Rupp, Olin's Chairman, President and Chief Executive Officer; and John E. Fischer, Olin's Vice President and Chief Financial Officer. Anyone wishing to listen to the call may do so via the Internet by following the instructions posted under the Conference Call icon on Olin's website, www.olin.com. Listeners should log on to the website at least 5 minutes before the call. The call will also be audio archived on the Olin website for future replay. A text of the prepared remarks from the conference call will be available on the website in the Investor section.

COMPANY DESCRIPTION

Olin Corporation is a manufacturer concentrated in two business segments: Chlor Alkali Products and Winchester. Chlor Alkali Products manufactures chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, potassium hydroxide and bleach products. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

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FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.

We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "project," "estimate," "forecast," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control.