LEHIGH VALLEY, Pa., Mar 11, 2003 /PRNewswire-FirstCall via COMTEX/ -- Air Products (NYSE: APD) today announced an agreement to divest the majority of its Canadian packaged gas business to the BOC Group (NYSE: BOX). Closing would follow receipt of applicable Canadian regulatory approvals. The transaction would have no impact on Air Products' other Canadian businesses, such as tonnage/on-site, merchant liquid bulk, electronic specialty gases, liquid helium, or its packaged gas businesses outside of Canada.

The divestiture would include 24 branch locations, four plants and one corporate office for a total of 29 facilities. These facilities cover four provinces/territories associated with the filling and distribution of cylinders, tube trailers, and other containers of industrial gases and non- electronic specialty gases, including customer service centers, warehouses, office space, and other related assets. Air Products will receive CAD$60 million (USD $40 million) in cash with an additional CAD$5 million (USD $3.3 million) that could become payable if certain performance conditions are achieved over the next three years.

Air Products will continue to focus on strengthening its capabilities in North America as a producer of tonnage and merchant liquid bulk gases and an innovative pioneer for new applications and service solutions. Air Products will retain its manufacturing and distribution capabilities to serve liquid oxygen, nitrogen, argon and hydrogen merchant and on-site customers in Canada and the northern markets of the United States from its facilities in Sarnia, Ontario, Saint-Augustin-de-Desmaures, Quebec, and Nanticoke, Ontario as well as its customer-dedicated service facilities in Ontario and Quebec.

"The proposed divestiture is the most recent example of how we are working to improve the mix and value of Air Products' core business portfolio," said Robert E. Gadomski, executive vice president of Air Products' Gases & Equipment Group.

Mr. Gadomski explained that the proposed sale would enable Air Products to divest a business in which it currently holds a small market share.

"We will look to redirect resources and focus on our growth platforms where we've built core competencies and leadership positions," he said.

Air Products (NYSE: APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. The company is the largest global supplier of electronic materials, hydrogen, helium and select performance chemicals. Founded in 1940, Air Products is recognized for its innovative culture, operational excellence and commitment to safety and the environment. With annual revenues of $5.4 billion and operations in 30 countries, the company's 17,200 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com.

***NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

SOURCE Air Products and Chemicals, Inc.

CONTACT:          Media: Katherine (Kassie) Hilgert, +1-610-481-1188 or
                  hilgerk@apci.com, or Investors: Alexander W. Masetti, +1-610-481-7461 or
                  masettaw@apci.com, both of Air Products and Chemicals

URL:              http://www.airproducts.com 
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