WHAT'S NEW? Contents for Probe's Latest Chemical Outlook (January-February 2008) OVERVIEW What the heck is going on? (Page 1) Commodity prices have been this crazy before. (Page 2) U.S. economy slumps toward recession. (Page 3) The mortgage crisis and the election year fix. (Page 3) Rest of world acts like it doesn’t care about the U.S. (Page 4) Phthalates get a reprieve. (Page 5) Biofuels, the butthead solution. (Page 5) Biofuels drive up ammonia and sulfur prices. (Page 6) More about Probe’s latest forecasts. (Page 6) DATA TABLES Economic and Chemical Industry Indicators: Weakness Spreads (Page 7) Energy and Chemical Prices: Recession's Icy Breath (Page 8) Other Developments Probe has updated its semiannual forecasting study, Feedstock Petrochemical and Polymer Price and Margin Forecasts, with multi-scenario forecasts available out to 2012 or 2020. Probe updated its model and database to track goods, such as chemicals and polymers, that are contained in the exports and imports of other goods, such as automobiles and apparel. The results are found in two studies, New Model and Database Showing Hidden Foreign Trade Impacts on Your Business; and The Real U.S. Trade Balance in Plastics Resins: HDPE, LLDPE, Polystyrene, Polypropylene, PVC, ABS/SAN, Polycarbonate and Epoxies. Extensive databases are provided. Probe's president, Dr. Frederick M. Peterson, recently made presentations in Houston and New York on the outlook for the economy, energy, chemicals and chlor-alkali. In May 2008, he will speak at the Asian Petrochemical Industry Conference (APIC) in Singapore. DISCLAMER: Probe Economics, Inc., is not a licensed investment or financial advisor and makes no warranties with respect to the observations and forecasts presented here, other than to have developed them in a diligent and professional manner, and assumes no liability for consequential damages resulting from any use made of these observations and forecasts. For more information, E-Mail us at info@ProbeEconomics.com Copyright © 2006 Probe Economics Inc. All rights reserved.