Solutia Announces First Quarter 2008 Results

May 7, 2008 (PrimeNewswire via COMTEX News Network) ----

 Highlights * Net sales increased to $985 million from $702 million over the same period last year; -- Strategic investments
   enabled strong volume gains over prior year * Adjusted EBITDAR increased to $88 million from $75 million, over the same period,
   inclusive of $63 million increase in raw materials and energy costs 

ST. LOUIS, May 7, 2008 (PRIME NEWSWIRE) -- Solutia Inc. (NYSE:SOA) today reported net sales of $985 million for the first quarter of 2008, a 40% increase over net sales of $702 million for the same period in 2007. Approximately 29% of this increase is attributable to the consolidation of Flexsys sales beginning on May 1, 2007, following Solutia's acquisition of the remaining 50% share of its former joint venture. On a pro-forma basis, adjusting 2007 first quarter sales to include Flexsys, sales increased 14% over the prior year.

Solutia had consolidated net income of $1,420 million for the first quarter 2008 compared to a loss of $8 million for the same period in 2007. Solutia's results were impacted by reorganization items and certain gains and losses of $1,416 million after-tax and ($23) million after-tax in 2008 and 2007 respectively. After consideration of these special items in both periods, income was down $11 million from $15 million in the first quarter of 2007 to $4 million in the first quarter of 2008. This decline was the result of a higher percentage of the company's pre-tax earnings from foreign jurisdictions subject to income tax, higher interest costs and increased depreciation and amortization expense.

"Despite softness in U.S. automotive and housing markets, our first quarter results reflect strong volume gains across most businesses which demonstrates the improved geographic and end use diversity of the company's portfolio," commented Jeffry Quinn, chairman, president and chief executive officer of Solutia Inc. "While selling prices trailed raw material cost increases in the quarter, in particular in the Integrated Nylon segment, this was not unexpected given the increasing cost profile across the quarter. We are off to a solid start in 2008, and are focused on getting selling prices up over the coming quarters."

FRESH START ACCOUNTING

Upon emergence from chapter 11 reorganization, Solutia adopted fresh-start accounting, as required by generally accepted accounting principles. This resulted in the company having a new capital structure, a new basis in identifiable assets and liabilities and no retained earnings or accumulated losses as of March 1, 2008. Accordingly, the company's financial information shown for periods prior to March 1, 2008 ("Predecessor") is not comparable to consolidated financial statements presented on or after March 1, 2008 ("Successor"). However, for the readers' convenience the current year results of operations for these two periods of the Predecessor and the Successor have been combined in this news release. As a result of the increased asset values through the application of fresh-start accounting and the implementation of new stock based incentive plans at emergence, 2008 operating earnings include an additional $3 million of non-cash expenses consisting of $2 million additional depreciation and amortization expense and stock compensation expense of $1 million. In addition, reported profitability in all segments was adversely affected by charges resulting from the step-up in basis of the company's inventory in accordance with fresh start accounting in the aggregate amount of $25 million.

The table below is provided to assist the reader with combined consolidated and segment sales, EBITDAR(1) and Adjusted EBITDAR (3) comparability between the first quarter 2008 and the first quarter 2007.

 ---------------------------------------------------------------------
   Three Months Ended March 31 From Continuing Operations Combined Adjust- 2008 As (in millions) 2008 ment(2) Adjusted 2007 ---------------------------------------------------------------------
   Net Sales Saflex 193 193 169 CPFilms 62 62 59 Technical Specialties 252 252 39 Integrated Nylon 468 468 426 Corporate/Other
   10 10 9 ---------------------------------------- Total 985 985 702 ======================================== EBITDAR(1) Saflex
   20 13 33 28 CPFilms 12 4 16 16 Technical Specialties 52 7 59 8 Integrated Nylon (9) 2 (7) 28 Corporate/Other (11) (2) (13)
   (12) ---------------------------------------- Total 64 24 88 68 ======================================== 2007 From Continuing
   Adjust 2007 As 2007 Adjusted % Operations (in millions) ment(2) Adjusted Flexsys Pro forma change ---------------------------------------------------------------------
   Net Sales Saflex 169 169 14% CPFilms 59 59 5% Technical Specialties 39 164 203 24% Integrated Nylon 426 426 10% Corporate/Other
   9 9 11% ------------------------------------------ Total 702 164 866 14% ========================================== EBITDAR(1)
   Saflex 28 28 18% CPFilms 16 16 0% Technical Specialties 8 36 44 34% Integrated Nylon 28 28 -126% Corporate/Other 7 (5) (9)
   (14) 7% ------------------------------------------ Total 7 75 27 102 -14% ========================================== (1) EBITDAR
   is defined as earning before interest expense, income taxes, depreciation and amortization, and reorganization items, net
   (2) Adjustments include Events Affecting Comparability (see table below) and non-cash stock compensation expense (3) Adjusted
   EBITDAR is EBITDAR (as defined above), excluding Events Affecting Comparability (see table below) and non-cash stock compensation
   expense 

CONSOLIDATED RESULTS

Reported combined consolidated EBITDAR for the first quarter decreased to $64 million from $68 million in 2007. After taking into consideration certain net losses (as described above in Adjustments) of $24 million and $7 million respectively for 2008 and 2007, adjusted EBITDAR increased to $88 million from $75 million. On a pro-forma basis, adjusting 2007 first quarter results to include Flexsys, adjusted EBITDAR in the first quarter 2008 decreased $14 million from $102 million in 2007.

SEGMENT DATA

As previously announced on March 10, 2008, Solutia realigned its financial reporting to four segments from its previous two segment reporting structure. The four segments are Saflex, CPFilms, Technical Specialties, and Integrated Nylon. Management believes this new reporting structure more effectively communicates Solutia's current operating environment and business unit strategies, while concurrently providing increased transparency into the company's operating and financial performance.

SAFLEX SEGMENT

Saflex's first quarter 2008 net sales were $193 million, up $24 million or 14% from the same period of 2007.

EBITDAR decreased $8 million to $20 million for the first quarter of 2008 compared to the prior year period. EBITDAR for this business was adversely affected by a non-cash charge of $12 million associated with the fresh start accounting step-up in basis of inventory and $1 million of severance and retraining cost. Excluding these charges, EBITDAR increased by $5 million, or 18% primarily due to stronger revenues in comparison to the prior year.

CPFILMS SEGMENT

CPFilms' first quarter 2008 net sales were $62 million, up $3 million or 5% from the same period in 2007.

EBITDAR decreased $4 million to $12 million for the first quarter of 2008, compared to the prior year period. Excluding a $4 million non-cash charge associated with the fresh start accounting step-up in basis of the segment's inventory, EBITDAR was equal to that of the previous year with the earnings increase from higher revenues offset by targeted spending on international market development programs.

TECHNICAL SPECIALTIES SEGMENT

Technical Specialties net sales for the first quarter 2008 of $252 million increased by $213 million compared to 2007. Including Flexsys on a pro forma basis, sales improved $49 million or 24% over 2007.

EBITDAR increased $44 million to $52 million during the first quarter 2008 compared to the prior year period. Including Flexsys on a pro forma basis, EBITDAR increased $15 million, excluding a $7 million non-cash charge associated with the fresh start accounting step-up in basis of the segment's inventory, primarily due to stronger revenues versus the prior year.

INTEGRATED NYLON SEGMENT

Integrated Nylon net sales for the first quarter 2008 of $468 million increased $42 million or 10% compared to 2007.

Integrated Nylon EBITDAR decreased $37 million to a $9 million loss during the first quarter 2008 compared to the prior year period. This segment was also impacted by fresh start accounting related to step-up in inventory basis in the amount of $2 million. Excluding this charge, the $35 million decrease in year-over-year adjusted EBITDAR is primarily attributable to higher raw material costs that were only partially recovered with higher selling prices in the quarter.

UNALLOCATED AND OTHER

After taking into consideration gains and losses and decreases in equity earnings as a result of the Flexsys acquisition, corporate and other expenses were flat compared to the first quarter 2007.

CASH FLOW

Cash from operations in first quarter 2008 was a use of $469 million. This included $355 million of reorganization related cash outflows required to facilitate emergence from Chapter 11, a $151 million seasonal increase in inventory and accounts receivable and a $19 million mandatory contribution to the domestic pension plan.

OUTLOOK

Assuming raw material costs plateau as currently anticipated in the second quarter, the Company expects 2008 adjusted EBITDAR in the $375 million to $400 million range. This compares to $376 million of pro forma adjusted EBITDAR in 2007, inclusive of Flexsys results on a full year basis.

FIRST QUARTER CONFERENCE CALL

The company will hold a conference call at 9 a.m. Central Time (10 a.m. Eastern Time) on Thursday, May 8, 2008, during which Solutia executives will elaborate upon the company's first quarter 2008 financial results, and discuss the company's improved strategic and financial position following its first quarter emergence from Chapter 11 reorganization.

A live webcast of the conference call will be available through the Investors section of www.solutia.com. The phone number for the call is 888-713-4209 (U.S.) or 617-213-4863 (International), and the pass code is 10837115. Participants are encouraged to dial in 10 minutes early, and also may pre-register for the event at https://www.theconferencingservice.com/prereg/key.process. A replay of the event will be available through www.solutia.com for two weeks or by calling 888-286-8010 (U.S.) or 617-801-6888 (International) and entering the pass code 77722920.

SUMMARY OF EVENTS AFFECTING COMPARABILITY

Gains and losses (as identified by footnotes a, b & c below) recorded in the first quarter of 2008 and 2007 and other events affecting comparability have been summarized and described in the table and accompanying footnotes below (dollars in millions):

2008 EVENTS

 ------------------------------------------------------ Increase/ (Decrease) Technical Integrated Unallocated/
   Consoli- Specialties SAFLEX(R) Nylon CPFilms Other dated ----------- --------- ----- ------- ----- ----- Impact on: Cost of
   goods sold $ 7 $ 12 $ 2 $ 4 $ -- $ 25 (a) -- -- -- -- (3) (3) (b) -- 1 -- -- -- 1 (c) ------------------------------------------------------
   Operating Income Impact (7) (13) (2) (4) 3 (23) Reorganization Items, net -- -- -- -- 1,633 1,633 (d) ------------------------------------------------------
   Pre-tax Income Statement Impact $ (7) $ (13) $ (2) $ (4) $1,636 1,610 =========================================== Income tax
   impact 194 (e) --------- After-tax Income Statement Impact $ 1,416 ===== a) Charges resulting from the step-up in basis of
   our inventory in accordance with fresh-start accounting ($25 million pre-tax and after-tax). b) Gain resulting from joint
   settlements with Monsanto of legacy insurance policies with insolvent insurance carriers ($3 million pre-tax and after-tax).
   c) Restructuring costs related principally to severance and retraining costs ($1 million pre-tax and after-tax). d) Reorganization
   items, net consist of the following: $104 million charge on the settlement of liabilities subject to compromise, $1,789 million
   gain from fresh-start accounting adjustments, and $52 million of professional fees for services provided by debtor and creditor
   professionals directly related to our reorganization proceedings ($1,633 million pre-tax and $1,439 after-tax). e) Income
   tax expense has been provided on gains and charges at the tax rate in the jurisdiction in which they have been or will be
   realized. 

2007 EVENTS

 ------------------------------------------------------ Increase/ (Decrease) Technical
   Integrated Unallocated/ Consoli- Specialties SAFLEX(R) Nylon CPFilms Other dated ----------- --------- ----- ------- -----
   ----- Impact on: Cost of goods sold $ -- $ -- $ -- $ -- $ -- $ -- -------------------------------- Operating Income Impact
   -- -- -- -- Loss on debt modification -- -- -- -- (7) (7)(a) Reorganization Items, net -- -- -- -- (16) (16)(b) -------------------------------------------------------
   Pre-tax Income Statement Impact $ -- $ -- $ -- $ -- $ (23) (23) ============================================== Income tax
   impact -- (c) -------- After-tax Income Statement Impact $ (23) ===== a) Charges of approximately $7 million (pre-tax and
   after-tax - see note (c) below) to record the write-off of debt issuance costs and to record the DIP facility as modified
   at its fair value as of the amendment date. b) Reorganization items, net consist of the following: $15 million of professional
   fees for services provided by debtor and creditor professionals directly related to our reorganization proceedings and $1
   million of expense provisions related to (i) employee severance costs incurred directly as part of the Chapter 11 reorganization
   process and (ii) a retention plan for certain our employees approved by the Bankruptcy Court ($16 million pre-tax and after-tax
   - see note (c) below). c) The above items are considered to have like pre-tax and after-tax impact as the tax benefit or expense
   realized from these events is offset by the change in valuation allowance for U.S. deferred tax assets resulting from uncertainty
   as to their recovery due to our Chapter 11 bankruptcy filing. 

USE OF NON-U.S. GAAP FINANCIAL INFORMATION AND RECONCILIATION TO COMPARABLE GAAP NUMBER

For the purpose of this press release, the company has used certain pro forma and other financial measures such as EBITDAR (defined as earning before interest expense, income taxes, depreciation and amortization and reorganization items, net) and Adjusted EBITDAR (to include EBITDAR and exclude gains and losses and non-cash stock compensation expense) that are not determined in accordance with generally accepted accounting principles in the United States (GAAP). The company believes that these non-GAAP financial measures are useful to investors because they facilitate period-to-period comparisons of Solutia's performance and enable investors to assess the company's performance in the way that management and lenders do. Our debt covenants and certain management reporting and incentive plans are measured against certain of these non-GAAP financial measures. Reconciliations of these measures to GAAP measures are included immediately below.

RECONCILIATION OF ADJUSTED EBITDAR TO INCOME (LOSS) FROM CONTINUING OPERATIONS

 Predecessor Successor Combined Predecessor Two One Three Three
   Months Month Months Months Ended Ended Ended Ended Feb. 29, March 31, March 31, March 31, (dollars in millions) 2008 2008
   2008 2007 -------------------------------------- Adjusted EBITDAR $ 62 $ 26 $ 88 $ 75 Add: Income Tax Expense (206) -- (206)
   (7) Reversing tax effect of reorganization and unusual gains/losses 194 0 194 0 -------------------------------------- Income
   Tax Expense (net) (12) -- (12) (7) Interest Expense (21) (18) (39) (28) Depreciation and Amortization (20) (12) (32) (25)
   Non-cash Stock Compensation Expense -- (1) (1) -- -------------------------------------- Income from Continuing Operations
   before unusual gains/losses & reorg 9 (5) 4 15 Reorganization Items (2008 Gross $1633M, net of tax $1439M) 1,439 -- 1,439
   (16) Gains & Losses (2008 gross and after-tax $23M) 2 (25) (23) (7) -------------------------------------- Income (Loss)
   from Continuing Operations $ 1,450 $ (30) $ 1,420 $ (8) ====================================== 

RECONCILIATION OF PROFORMA SALES AND ADJUSTED EBITDAR INCLUDING FLEXSYS

 Proforma Technical Proforma Special- Quarter Ended March 31,
   2007 (dollars in millions) Solutia ties -------------------------------------------------------------------- Net Sales $ 702
   $ 39 Add: Flexsys Net sales for the three months ended March 31, 2007 164 164 ----------------- Proforma Net Sales with Flexsys
   on 100% basis 866 203 Adjusted EBITDAR $ 75 $ 8 Flexsys EBITDAR quarter 1 2007 36 36 Back out Equity Income from Flexsys JV
   (9) -- ----------------- Proforma Adjusted EBITDAR with Flexsys on 100% basis $ 102 $ 44 ================= 

RECONCILIATION OF 2007 PROFORMA ADJUSTED EBITDAR

 --------------------------------------------------------------------- Net Income
   Twelve Months Ended 2007 ($222) --------------------------------------------------------------------- Taxes 19 Interest Expense
   134 Depreciation & Amortization 116 Reorganization Items 298 Gains and (Losses) (5) Proforma for Flexsys Full Year 2007
   Pre-acquisition Flexsys results 48 Less: Equity Income (12) ---------------------------------------------------------------------
   Pro-Forma Consolidated EBITDAR 2007 $376 --------------------------------------------------------------------- SOLUTIA INC.
   CONSOLIDATED STATEMENT OF OPERATIONS (Dollars and shares in millions, except per share amounts) (Unaudited) Predecessor Successor
   Combined Predecessor ----------- --------- -------- ----------- Two One Three Three Months Month Months Months Ended Ended
   Ended Ended Feb. 29, March 31, March 31, March 31, 2008 2008 2008 2007 ---- ---- ---- ---- Net Sales $ 653 $ 332 $ 985 $ 702
   Cost of goods sold 555 316 871 599 ------- ------- ------- ------- Gross Profit 98 16 114 103 Selling, general and administrative
   expenses 51 26 77 58 Research, development and other operating expenses 5 2 7 8 ------- ------- ------- ------- Operating
   Income (Loss) 42 (12) 30 37 Equity earnings from affiliates -- -- -- 9 Interest expense (21) (18) (39) (28) Other income,
   net 2 -- 2 4 Loss on debt modification -- -- -- (7) Reorganization items, net 1,633 -- 1,633 (16) ------- ------- -------
   ------- Income (Loss) Before Income Tax Expense 1,656 (30) 1,626 (1) Income tax expense 206 -- 206 7 ------- ------- -------
   ------- Net Income (Loss) $ 1,450 $ (30) $ 1,420 $ (8) ======= ======= ======= ======= Basic and Diluted Income (Loss) per
   Share: Basic net income (loss) per share $ 13.88 $ (0.50) N/A $ (0.08) Diluted net income (loss) per share $ 13.88 $ (0.50)
   N/A $ (0.08) SOLUTIA INC. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Dollars in millions, except per share amounts) (Unaudited)
   Successor Predecessor --------- ----------- March 31, Dec. 31, 2008 2007 ---- ---- ASSETS Current Assets: Cash and cash equivalents
   $ 71 $ 173 Trade receivables, net of allowances of $0 in 2008 and $4 in 2007 507 448 Miscellaneous receivables 143 133 Inventories
   793 417 Prepaid expenses and other assets 93 53 Assets of discontinued operations 5 7 ------- ------- Total Current Assets
   1,612 1,231 Property, Plant and Equipment, net of accumulated depreciation of $10 in 2008 and $2,699 in 2007 1,510 1,052 Goodwill
   546 149 Identified Intangible Assets, net 855 58 Other Assets 271 150 ------- ------- Total Assets $ 4,794 $ 2,640 =======
   ======= LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 406 $ 343 Accrued liabilities 319 296
   Short-term debt, including current portion of long-term debt 13 982 Liabilities of discontinued operations 4 6 ------- -------
   Total Current Liabilities 742 1,627 Long-Term Debt 1,848 359 Postretirement Liabilities 458 80 Environmental Remediation Liabilities
   297 61 Deferred Tax Liabilities 234 45 Other Liabilities 185 141 Liabilities Subject to Compromise -- 1,922 Shareholders'
   Equity (Deficit): Successor common stock at $0.01 par value; (500,000,000 shares authorized, 60,763,046 shares issued and
   outstanding in 2008) 1 -- Predecessor common stock at $0.01 par value; (600,000,000 shares authorized, 118,400,635 shares
   issued and outstanding in 2007) -- 1 Additional contributed capital 1,037 56 Predecessor stock held in treasury, at cost,
   13,941,057 shares in 2007 -- (251) Predecessor net deficiency of assets at spin-off -- (113) Accumulated other comprehensive
   income (loss) 22 (46) Accumulated deficit (30) (1,242) ------- ------- Total Shareholders' Equity (Deficit) 1,030 (1,595)
   ------- ------- Total Liabilities and Shareholders' Equity (Deficit) $ 4,794 $ 2,640 ======= ======= SOLUTIA INC. CONSOLIDATED
   STATEMENT OF CASH FLOWS (Dollars in millions) (Unaudited) Predecessor Successor Combined Predecessor ----------- ---------
   -------- ----------- Two One Three Three Months Month Months Months Ended Ended Ended Ended Feb. 29, March 31, March 31, March
   31, 2008 2008 2008 2007 ---- ---- ---- ---- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS OPERATING ACTIVITIES: Net income
   (loss) $ 1,450 $ (30) $ 1,420 $ (8) Adjustments to reconcile to net income (loss) to net cash used in operations: Depreciation
   and amortization 20 12 32 25 Revaluation of assets and liabilities, net of tax (1,591) -- (1,591) -- Discharge of claims and
   liabilities, net of tax 100 -- 100 -- Other reorganization items, net 52 -- 52 15 Pension expense (less than) in excess of
   contributions (18) -- (18) (29) Other postretirement benefits expense less than payments (6) (1) (7) (12) Amortization of
   deferred credits (1) (1) (2) (2) Amortization of deferred debt issuance costs -- 2 2 -- Deferred income taxes 4 (1) 3 3 Equity
   earnings from affiliates -- -- -- (9) Restructuring expenses and other charges (2) 25 23 7 Changes in assets and liabilities:
   Income taxes payable 5 4 9 -- Trade receivables (34) (24) (58) (48) Inventories (66) (27) (93) (41) Accounts payable 41 (3)
   38 23 Environmental remediation liabilities (1) (1) (2) (1) Other assets and liabilities (18) (5) (23) (23) ----- ----- -----
   ----- Cash Used in Continuing Operations before Reorganization Activities (65) (50) (115) (100) Reorganization Activities:
   Establishment of VEBA retiree trust (175) -- (175) -- Establishment of restricted cash for environmental remediation and other
   legacy payments (46) -- (46) -- Payment for allowed secured and administrative claims (79) -- (79) -- Professional service
   fees (31) (7) (38) (16) Other reorganization and emergence related payments (17) -- (17) (3) ----- ----- ----- ----- Cash
   Used in Reorganization Activities (348) (7) (355) (19) ----- ----- ----- ----- Cash Used in Operations - Continuing Operations
   (413) (57) (470) (119) Cash Provided by Operations - Discontinued Operations 1 -- 1 -- ----- ----- ----- ----- Cash Used in
   Operations (412) (57) (469) (119) ----- ----- ----- ----- INVESTING ACTIVITIES: Restricted cash for acquisition -- -- -- (150)
   Property, plant and equipment purchases (29) (5) (34) (36) Investment proceeds and property disposals, net -- -- -- 4 -----
   ----- ----- ----- Cash Used in Investing Activities-Continuing Operations (29) (5) (34) (182) Cash Used in Investing Activities-Discontinued
   Operations -- -- -- (1) ----- ----- ----- ----- Cash Used in Investing Activities (29) (5) (34) (183) ----- ----- ----- -----
   FINANCING ACTIVITIES: Proceeds from long-term debt obligations 1,600 -- 1,600 -- Net change in long-term revolving credit
   facilities 190 53 243 -- Proceeds from stock issuance 250 -- 250 -- Proceeds from short-term debt obligations -- -- -- 325
   Payment of short-term debt obligations (966) -- (966) -- Payment of long-term debt obligations (366) (3) (369) -- Payment
   of debt obligations subject to compromise (221) -- (221) -- Debt issuance costs (136) -- (136) (5) ----- ----- ----- -----
   Cash Provided by Financing Activities 351 50 401 320 ----- ----- ----- ----- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   (90) (12) (102) 18 CASH AND CASH EQUIVALENTS: Beginning of period 173 83 173 150 ----- ----- ----- ----- End of period $ 83
   $ 71 $ 71 $ 168 ===== ===== ===== ===== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash payments for interest $ 43
   $ 6 $ 49 $ 37 Cash payments for income taxes 4 1 5 2 

Notes to Editor: Saflex, CPFilms, Flexsys, Crystex, Therminol, Ascend and Vydyne are registered trademarks of Solutia Inc. and/or its subsidiaries.

Important Information Regarding Outlook

There is no guarantee that Solutia will achieve its projected financial expectation for 2008 which is based on management estimates, currently available information and assumptions which management believes to be reasonable. Such forward-looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See "Forward-Looking Statements" below.

Forward Looking Statements

This press release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "may," "will," "intends," "plans," "estimates" or "anticipates," or other comparable terminology, or by discussions of strategy, plans or intentions. These statements are based on management's current expectations and assumptions about the industries in which Solutia operates. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, those risk and uncertainties described in Solutia's most recent Annual Report on Form 10-K, including under "Cautionary Statement About Forward Looking Statements" and "Risk Factors", and Solutia's quarterly reports on Form 10-Q. These reports can be accessed through the "Investors" section of Solutia's website at www.solutia.com. Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.

Corporate Profile

Solutia is a market-leading performance materials and specialty chemicals company. The company focuses on providing solutions for a better life through a range of products, including: Saflex(r) interlayer for laminated glass; CPFilms(r) aftermarket window films sold under the LLumar(r) brand and others; high-performance nylon polymers and fibers sold under brands such as Vydyne(r) and Wear-Dated(r); and technical specialties including the Flexsys(r) family of chemicals for the rubber industry, Skydrol(r) aviation hydraulic fluid and Therminol(r) heat transfer fluid. Solutia's businesses are world leaders in each of their market segments. With its headquarters in St. Louis, Missouri, USA, the company operates globally with approximately 6,000 employees in more than 60 locations. More information is available at www.Solutia.com.

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SOURCE: Solutia Inc.

Solutia
   Inc Media: Dan Jenkins (314) 674-8552 Investors: Susannah Livingston (314) 674-8914 

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