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Momentive Performance Materials to Expand Global Manufacturing Capacity for Silanes

Plant Expansions in Sistersville, West Virginia, and Termoli, Italy, Will Serve Global Customer Base

ALBANY, New York (August 24, 2011) — Momentive Performance Materials Inc. today announced that it will expand production capacity for silanes at its manufacturing facilities in Sistersville, W. Va., and Termoli, Italy to help meet growing demand from its global customer base, particularly in China, for these versatile products.

Momentive’s silanes, marketed under the trademarks Silquest*, CoatOSil*, NXT* and XL-PEarl*, and silane-based SPUR+* prepolymers have a diverse range of specialty applications. They are used in a number of industries, including automotive, tire, coatings, adhesives and sealants, construction, durable goods and electronics. Momentive is a global leader in providing customers with advanced silane technology, applications development and customer support.

Capacity for amino silanes will be increased at the Sistersville location and capacity for vinyl silanes will be increased at Termoli. Also, Momentive will resume production for trimethoxysilane (TMS), Silquest A-187* epoxy silane and Silquest A-174* methacryl silane at the Sistersville location before the end of the year. Projects are underway at both sites, and completion is expected in 2012. In addition to the Sistersville and Termoli manufacturing facilities, Momentive produces silane additives in Japan, Germany, Brazil and Waterford, N.Y.

“These investments in manufacturing capacity will enable us to bring innovative silane technologies and products to the industry more quickly and better serve our customers’ growing need for these materials,” said Rich Owins, Global Business Director – Silanes, Momentive Performance Materials. “Our customers in the plastic additives, adhesives, sealants, tire and coatings and other industries are increasingly turning to our cutting-edge silanes formulations to provide enhanced performance characteristics in their end products.”

“We will continue to evaluate additional expansion opportunities in key world regions to support our customers and the growing global demand,” Owins added.

Silanes are used as coupling agents, crosslinking agents and surface modifiers and can impart improved physical properties in various specialty products and applications. These range from fuel-saving silica tires and high performance coatings, to adhesives, sealants, and wire and cable jacketing and insulation.

Silanes are used in various organic materials, such as coatings, adhesives and sealants, silica and fiberglass, to help those materials bond to a variety of surfaces, including rubber, glass, metal, stone and plastic, and other more challenging substrates, such as PVC, acrylics and polylaminates. As coupling agents, crosslinking agents and surface modifiers, silanes can be used to promote better adhesion and easier mixing under a variety of conditions. Depending on the application, silanes can also enhance certain surface properties, help avoid corrosion and improve thermal stability, hardness, chemical and moisture resistance, wet traction, rolling resistance, flow, leveling, coefficient of friction and other desired characteristics.

About the Company
Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 70+ year heritage of being first to market with performance applications for major industries that support and improve everyday life. The Company delivers science-based solutions, by linking custom technology platforms to opportunities for customers. Momentive Performance Materials Inc. is an indirect wholly-owned subsidiary of Hexion Holdings LLC. Additional information is available at www.momentive.com.

About the New Momentive
Hexion Holdings LLC is the ultimate parent company of Momentive Performance Materials Inc. and Hexion Inc. (collectively, the “new Momentive”). The new Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. The new Momentive was formed in October 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The capital structures and legal entity structures of both Momentive Performance Materials Inc. and Hexion Inc. (formerly known as Hexion Specialty Chemicals, Inc.), and their respective subsidiaries and direct parent companies, remain separate. Momentive Performance Materials Inc. and Hexion Inc. file separate financial and other reports with the Securities and Exchange Commission. The new Momentive is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about the new Momentive and its products is available at www.momentive.com.

Forward-Looking and Cautionary Statements
Certain statements, including, but not limited to, statements related to our expansion of production capacity, in this press release constitute forward-looking statements within the meaning of and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, our management may from time to time make oral forward-looking statements. All statements other than statements of historical facts are statements that could be forward-looking statements. Forward-looking statements may be identified by the words “will,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “believe” or “intend” and similar words or expressions. These forward-looking statements reflect our current views with respect to future events and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our operations, markets, services, prices and other factors. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: our substantial leverage; limitations in operating our business contained in the documents governing our indebtedness, including the restrictive covenants contained therein; weak or deteriorating global economic conditions; the effects of the earthquake and tsunami in Japan on March 11, 2011 and related events, difficulties with the integration process or realization of benefits in connection with the transactions with our affiliate, Hexion Inc., including the shared services agreement. For a more detailed discussion of these and other risk factors, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, our Quarterly Report on Form 10-Q for the fiscal period ended April 3, 2011 and our other filings with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary notice. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.


* Silquest, Silquest A-174, Silquest A-187, CoatOSil, NXT, XL-PEarl and SPUR+ are trademarks of Momentive Performance Materials Inc.


Contacts:

Media:
Nancy Pitts
203-801-0836
nancy.pitts@momentive.com

Peter Loscocco
614-225-4127
peter.loscocco@momentive.com

Investors:
John Kompa
614-225-2223
john.kompa@momentive.com