Appeals Court Hears Solutia Employees’ Argument

New York, NY, May 23, 2007--On May 21, 2007, the Court of Appeals for the Second Circuit heard oral argument in a case brought on behalf of certain current and former employees of Solutia Inc.

The case, which was originally filed in October 2004, was brought on behalf of all the participants in the Solutia Inc. Savings and Investment Plan (the "Plan") who invested their Plan retirement money in Solutia stock during the period September 1, 1997 to December 15, 2003.

In December 2003, Solutia declared bankruptcy, causing participants to lose millions of dollars as a result of their investments in Solutia stock. Plaintiff alleges that Solutia and the Plan's fiduciaries breached their fiduciary obligations by allowing the Plan to invest retirement money in Solutia stock at a time when Solutia was headed toward bankruptcy and its stock was not a prudent retirement investment.

The Department of Labor filed papers as a "friend of the court" in support of the plaintiff and argued that the named plaintiff should be allowed to bring the action on behalf of all Plan participants. In 2005 the Department of Labor began an investigation of the Plan and in December 2006 issued a letter to Solutia stating that Solutia, through its fiduciaries, breached its fiduciary obligations with respect to the Plan.

Plaintiff is represented by the law firms of Malakoff Doyle & Finberg, P.C. and Sarraf Gentile LLP, which the court previously appointed as Interim Class Counsel.