LSB INDUSTRIES, INC. — Director's Dealing 2008

Feb 8, 2008

SEC Form 5 — Annual Statement of Changes in Beneficial Ownership

Issuer: LSB INDUSTRIES INC (LXU)
CIK: 0000060714
Period of Report: 2007-12-31

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-02-27	Common Stock	G	38177	—	Disposed	2000	Direct
2007-02-27	Common Stock	G	38177	—	Acquired	29455	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Nonqualified Stock Option	$1.25	2009-07-08	Common Stock (50000)	50000	Direct
Incentive Stock Option	$1.25	2009-07-08	Common Stock (50000)	50000	Direct
Incentive Stock Option	$2.73	2011-11-29	Common Stock (10000)	10000	Direct

Footnotes

F1: These shares were contributed by the reporting person to the reporting person's revocable trust on February 27, 2007. Please see footnote (3) for a description of the reporting person's revocable trust.

F2: Since the reporting person's contribution of 38,177 shares of the Issuer's common stock to his revocable trust on February 27, 2007, as described herein, the reporting person has sold in total 8,722 shares of the Issuer's common stock from his revocable trust in three separate transactions of 3,000 shares, 2,000 shares and 3,722 shares, respectively. These transactions were reported in the reporting person's Form 4 filings, filed with the SEC on May 14, 2007 and December 17, 2007.

F3: 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.

F4: 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, the total number of shares underlying the ISOs and NQSOs held by the reporting person is 110,000.