EXHIBIT 12.1



HEXION SPECIALTY CHEMICALS, INC.

STATEMENT REGARDING COMPUTATION OF RATIOS

(In millions)



|                                                                                                                                                                                                                                                   |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | --- | - | -------- | - | ---- | ---- |  | - | ---- | - |  | ---- | --- | - |  | - | --- | -
|                                                                                                                                                                                                                                                   |  | Year ended December 31, |    
|                                                                                                                                                                                                                                                   |  | 2005 (1)                |     |   | 2004 (2) |   |      | 2003 |  |   | 2002 |   |  | 2001 |    
|Pre-tax loss from continuing operations                                                                                                                                                                                                            |  | $                       | (29 | ) |          | $ | (113 | )    |  | $ | (100 | ) |  | $    | (24 | ) |  | $ | (6  | )
|Add back                                                                                                                                                                                                                                           |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|Income from equity investees                                                                                                                                                                                                                       |  |                         |    |   |          |   |     |      |  |   | (2   | ) |  |      | (1  | ) |  |   |    |  
|                                                                                                                                                                                                                                                   |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|Pre-tax loss from continuing operations before adjustment for minority interests in consolidated subsidiaries or income from equity
investees                                                                                                      |  |                         | (29 | ) |          |   | (113 | )    |  |   | (102 | ) |  |      | (25 | ) |  |   | (6  | )
|                                                                                                                                                                                                                                                   |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|Fixed Charges                                                                                                                                                                                                                                      |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|Interest expense                                                                                                                                                                                                                                   |  |                         | 224 |   |          |   | 118  |      |  |   | 77   |   |  |      | 65  |   |  |   | 70  |  
|Interest element of lease costs(3)                                                                                                                                                                                                                 |  |                         | 9   |   |          |   | 5    |      |  |   | 3    |   |  |      | 3   |   |  |   | 2   |  
|Preferred stock dividend requirements of consolidated subsidiaries                                                                                                                                                                                 |  |                         | 30  |   |          |   |     |      |  |   |     |   |  |      |    |   |  |   |    |  
|                                                                                                                                                                                                                                                   |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|Total fixed charges                                                                                                                                                                                                                                |  |                         | 263 |   |          |   | 123  |      |  |   | 80   |   |  |      | 68  |   |  |   | 72  |  
|                                                                                                                                                                                                                                                   |  |                         |     |   |          |   |      |      |  |   |      |   |  |      |     |   |  |   |     |  
|Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income from equity
investees plus fixed charges, less preferred stock dividend requirements of consolidated subsidiaries |  |                         | 204 |   |          |   | 10   |      |  |   | (22  | ) |  |      | 43  |   |  |   | 66  |  
|Ratio of earnings to fixed charges(4)                                                                                                                                                                                                              |  |                         | N/A |   |          |   | N/A  |      |  |   | N/A  |   |  |      | N/A |   |  |   | N/A |  



|(1) | Includes date for Bakelite form date of acquisition by Borden Chemical on April 29, 2005.
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|(2) | Includes data for Resolution Specialty from August 2, 2004 and for Borden Chemical from August 12, 2004, their respective dates of acquisition by Apollo.
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|(3) | The interest element of lease costs has been calculated as 1/3of the rental expense relating to operating leases, as management believes this represents the interest portion hereof.
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|(4) | Our earnings were insufficient to cover fixed charges and preferred stock dividend requirements by $29, $113, $102, $25 and $6 for the years ended December 31, 2005, 2004,
2003, 2002 and 2001, respectively.
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