Kraton Performance Polymers, Inc. Announces Closing of the Secondary Public Offering of Common Stock and Underwriters' Exercise of Over-Allotment Option

HOUSTON, Oct. 4 /PRNewswire-FirstCall/ -- Kraton Performance Polymers, Inc. (NYSE: KRA), a leading global producer of styrenic block copolymers, announced today that following the closing of the secondary public offering of 8,000,000 shares of its common stock held by affiliates of TPG Capital, L.P. and J.P. Morgan Partners, LLC on September 29, 2010, the underwriters have exercised their option to purchase 1,200,000 additional shares of common stock from the affiliates of TPG Capital, L.P. and J.P. Morgan Partners, LLC at the public offering price less the underwriting discount to cover over-allotments. The sale of the over-allotment shares closed on October 4, 2010. After giving effect to the sale of shares sold pursuant to the over-allotment option, a total of 9,200,000 shares of common stock held by affiliates of TPG Capital, L.P. and J.P. Morgan Partners, LLC were sold in the offering at a price to the public of $26.50.

The Company did not receive any proceeds from the offering, and the total number of shares of common stock outstanding did not change as a result of the offering.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Morgan Stanley & Co. Incorporated and Oppenheimer & Co. Inc. were the bookrunning managers of the offering. A copy of the final prospectus relating to the offering may be obtained from: Credit Suisse Securities (USA) LLC, Attn: Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, Phone: 1-800-221-1037; BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attn: Prospectus Department or email [email protected]; KeyBanc Capital Markets, Attn: Prospectus Delivery Department, 127 Public Square, 6th Floor, Cleveland, OH 44114 or by calling (216) 689-0421; Morgan Stanley & Co. Incorporated, Attn: Prospectus Department, 180 Varick Street, New York, NY 10014 or [email protected];  Oppenheimer & Co. Inc. Attn: Syndicate Prospectus Department, 300 Madison Ave., 4th Floor, New York, New York 10017, Phone (212) 667-8563, Fax (212) 667-6141, or [email protected]; or UBS Securities LLC, Attn: Prospectus Department, 299 Park Avenue, New York, NY 10171.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT KRATON

Kraton Performance Polymers, Inc., through its operating subsidiary Kraton Polymers LLC and its subsidiaries (collectively, "Kraton"), is a leading global producer of engineered polymers and one of the world's largest producers of styrenic block copolymers (SBCs), a family of products whose chemistry was pioneered by Kraton almost 50 years ago. Kraton's polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, and medical, packaging, automotive, paving, roofing and footwear products. The company, offers approximately 800 products to more than 700 customers in over 60 countries worldwide, and is the only SBC producer with manufacturing and service capabilities on four continents. We manufacture products at five plants globally, including our flagship plant in Belpre, Ohio, the most diversified SBC plant in the world, as well as plants in Germany, France, Brazil and Japan. The plant in Japan is operated by an unconsolidated manufacturing joint venture. For more information on the company, please visit www.kraton.com.

Kraton, the Kraton logo and design, and the "Giving Innovators their Edge" tagline are all trademarks of Kraton Polymers LLC.

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SOURCE Kraton Performance Polymers, Inc.