Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Multiplicative potentials, appropriate for adding to the non-multiplicative fractional orbital exchange term in the Kohn-Sham equations, are determined from correlated ab initio electron densities. The potentials are examined graphically and are used in conjunction with conventional thermochemical data to determine a new hybrid exchange-correlation functional, denoted B97-2. Calculations using B97-2 are compared with those from ͑a͒ the B97-1 functional ͓J. Chem. Phys. 109, 6264 ͑1998͔͒, which has the same functional form and fraction of orbital exchange, but was fitted to just thermochemical data; and ͑b͒ the widely used B3LYP functional ͓J. Chem. Phys. 98, 5648 ͑1993͔͒. B97-2 atomization energies are close to those from B97-1; total electronic energies and ionization potentials are less accurate, but remain an improvement over B3LYP. Molecular structures from all three functionals are comparable. Static isotropic polarizabilities improve from B3LYP to B97-1 to B97-2; the B97-2 functional underestimates experimental values, which is consistent with the neglect of zero-point vibrational corrections. NMR shielding constantsdetermined as the conventional second derivative of the electronic energy-improve from B3LYP to B97-1 to B97-2. Shieldings determined directly from these DFT electron densities using the recently proposed MKS approach ͓Chem. Phys. Lett. 337, 341 ͑2001͔͒ are two to three times more accurate than the conventional shieldings, and exhibit an analogous improvement across the three functionals. Classical reaction barriers for sixteen chemical reactions improve significantly from B3LYP to B97-1 to B97-2. The introduction of multiplicative potentials into semi-empirical hybrid functional development therefore appears beneficial.