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                                                                    EXHIBIT 99.4

                        [REXENE CORPORATION LETTERHEAD]

                               September 3, 1996

Dear Rexene Shareholder:

        As you may know, Huntsman Corporation has decided to terminate its
efforts to acquire Rexene. In our view, Mr. Huntsman's decision not to pursue a
potentially costly and disruptive "hostile takeover" attempt of Rexene is a
positive development. We believe Huntsman's $15.00 per share proposal fell
short of adequately reflecting the long-term value of your Rexene shares and
would have precluded you from participating in Rexene's exciting future.

        I want to take this opportunity to thank the many shareholders who have
expressed their support for me and the other Rexene directors and managers who
so strongly believe that the Huntsman proposal was not in your best interests
and that Rexene is poised for future growth and success. The Board of Directors
and management of Rexene Corporation remain fully committed to enhancing
long-term value for all of our shareholders.

        As I discussed in our second quarter Report to Shareholders, we are in
the process of implementing an aggressive strategic plan that we believe will
significantly strengthen our competitive position and improve our financial
performance. This includes: focusing our existing assets on the higher margin
niches of the markets in which we compete; widening the range of polymer and
film products we can offer to existing and new customers; and lowering
production costs.

        The capital required for these improvements comes from current cashflow
and a draw down of our $150 million line of credit. We currently have used
approximately $20 million from this line. We believe that these capital
expenditures, which may have had a short term negative affect on our stock
price, should enhance shareholder value in the near future.

        We are well into the process of implementing a $175 million capital
program that we believe will significantly enhance our performance year by year
through 1998. Some of the specific strategic initiatives we are implementing
include: expanding our specialty propylene derivatives capacity by
approximately 70 million pounds; continuing our olefins expansion and
modernization program that will increase annual olefins production capacity by
approximately 50 percent and reduce production costs by approximately $25
million; expanding our polyethylene business by more than 50 percent and into
more specialized areas; improving the reliability and costs of our feedstock
supply; and working aggressively to strengthen our CT Film division through
new technologies and global expansion.
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September 3, 1996
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        In addition, we are expanding our efforts to ensure that the financial
community fully understands our strategy and our potential. I also have
communicated with all of our employees, reminding them of our commitment to our
shareholders and urging them to do everything they can to satisfy our
customers, operate efficiently, and build value for our shareholders.

        I believe that all of these initiatives, taken together, will enable us
to deliver enhanced value to our shareholders. I appreciate your continued
interest in our company and look forward to keeping you informed of our
progress.

                                        Sincerely,

                                        /s/ ANDREW J. SMITH

                                        Andrew J. Smith
                                        Chairman and Chief Executive Officer