SIOUX CITY, Iowa -- Terra Industries Inc. today confirmed receipt of an unsolicited proposal from CF Industries Holdings, Inc. to acquire Terra for a fixed exchange ratio of 0.4235 CF Industries shares for each Terra common share.

Terra's Board of Directors, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will consider and evaluate the proposal and will pursue the course of action that is in the best interests of Terra and its shareholders. Terra shareholders are advised to take no action at this time pending the review by Terra's Board of Directors.

Credit Suisse Securities (USA) LLC is serving as Terra's financial advisor, and Cravath, Swaine & Moore LLP is serving as legal counsel to Terra.

Terra Industries Inc., with 2007 revenues of $2.4 billion, is a leading international producer of nitrogen products.

SOURCE: Terra Industries Inc. via Business Wire.