LSB INDUSTRIES, INC. — Director's Dealing 2008

Jul 21, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: LSB INDUSTRIES INC (LXU)
CIK: 0000060714
Period of Report: 2008-07-17

Reporting Person: TEPPER MICHAEL DAWE (Sr. VP - Int'l Operations)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-07-17	Common Stock	M	50000	$1.25	Acquired	52000	Direct
2008-07-17	Common Stock	M	10000	$2.73	Acquired	62000	Direct
2008-07-17	Common Stock	G	60000	—	Disposed	2000	Direct
2008-07-17	Common Stock	G	60000	—	Acquired	89455	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-07-17	Incentive Stock Option	$1.25	M	50000	Disposed	2009-07-08	Common Stock (50000)	Direct
2008-07-17	Incentive Stock Option	$2.73	M	10000	Disposed	2011-11-29	Common Stock (10000)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Nonqualified Stock Option	$1.25	2009-07-08	Common Stock (50000)	50000	Direct

Footnotes

F1: These shares were contributed by the reporting person to the reporting person's revocable trust on July 17, 2008. Please see footnote (2) for a description of the reporting person's revocable trust.

F2: These shares are held by the reporting person's revocable trust, of which the reporting person is the trustee and exercises investment and dispositive control over the trust's portfolio securities.

F3: Incentive Stock Options ("ISO") and Nonqualified Stock Options ("NQSO") granted by the Issuer to the reporting person. All ISOs and NQSOs held by the reporting person are currently exercisable. As of the date of this report, there are no ISOs held by the reporting person and the total number of shares underlying the NQSOs held by the reporting person is 50,000.