Rentech Adopts Tax Benefit Preservation Plan

Rentech, Inc. RTK announced today that its Board of Directors has adopted a tax benefit preservation plan intended to protect the value of the Company's net operating loss carryforwards. The tax benefit preservation plan is similar to tax benefit preservation plans adopted by many other public companies with significant tax assets. Rentech's net operating loss carryforwards applicable to federal income taxes currently are in excess of $160 million. However, the Company's ability to use these NOLs would be substantially limited if it were to experience an “ownership change” as defined under Section 382 of the Internal Revenue Code. In general, an ownership change would occur if shareholders that own (or are deemed to own) at least 5 percent or more of Rentech's outstanding common stock increased their cumulative ownership in the Company by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. The Company believes that no ownership change as defined in Section 382 has occurred as of the date of this press release.