September 2014

Harcros Chemicals Resolves Government Investigation Into Materials Handling Company accused of storing older chemicals for longer than allowed.

KANSAS CITY, Kan., September 25, 2014.Harcros Chemicals Inc. (Harcros) has entered into a formal agreement with the U.S. Department of Justice and the U.S. Attorney's Office in Kansas City, Kansas, for a felony violation of the Resource Conservation and Recovery Act (RCRA). The charge involved the storage of seven older chemicals at the company's Kansas City, Kansas plant. Six of the chemicals were stored for use in laboratories for testing and one was an unused chemical product, which had been stored safely for many years.

Harcros operates a research and development laboratory where chemists perform testing for new products and quality control checks. The chemicals at issue were retained in cabinets and storage areas for potential future use. Shortly after a 2008 regulatory inspection, the chemicals were properly disposed off-site. None of the chemicals at issue were released into the environment, nor were any employees at risk.

As a result of the agreement, the company will pay a $1.5 million fine and face a probationary period. The fine payments will not adversely impact the company's financial position or its 100 percent employee stock ownership program (ESOP). "We have fully cooperated with the government during its investigation and we are pleased that this agreement resolves the matter raised several years ago," said Kevin Mirner, president and chief executive officer, Harcros Chemicals Inc. "We can now move forward, continuing to safely provide our customers with the quality products they've come to expect." About Harcros Chemicals Inc.

Harcros Chemicals Inc. is a major distributor and manufacturer of industrial and specialty chemicals. Privately held since 2001, the company has a long standing history in the chemical industry. The Harcros Chemicals Manufacturing Division headquartered in Kansas City, Kansas, with a secondary facility in Dalton, Georgia, is a niche producer of surfactants, emulsifiers, defoamers, and a myriad of specialty products, custom blends, and reaction chemistries. Harcros Chemicals operates twenty-eight distribution locations in nineteen states, providing service to customers nationwide. In January 2014, through the creation of an ESOP, Harcros Chemicals became a 100 percent employee-owned corporation.

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