Omnova Solutions Narrows First Quarter Loss

Fairlawn, OH, April 2, 2008--Omnova Solutions Inc. reported a net loss of $3.0 million, or $0.07 per diluted share, for the first quarter ended Feb. 29, compared to a net loss of $5.1 million, or $0.12 per diluted share, for the first quarter of 2007.

The company said its first quarter is traditionally the weakest.

Net sales increased $25.8 million, to $190.6 million, compared to $164.8 million during the same period a year ago. Contributing to the sales increase were one month of the Decorative Products Asian operations. Excluding the Decorative Products Asian operations, the Company's sales grew $17.7 million or 10.7%.

Effective Dec. 31, the company acquired the remaining 49.9 percent interest of its Decorative Products joint venture companies in China and Thailand for $28 million in cash.

"We are encouraged by the year-over-year improvements in what is typically our seasonally weakest quarter," said CEO Kevin McMullen.

"We achieved the sales and volume growth in both Performance Chemicals and Decorative Products, despite what continues to be an extremely challenging environment with unprecedented raw material inflation and weak end-use markets. After experiencing a 68% increase in oil prices in 2007, oil has continued to climb to as high as $111 a barrel in 2008. That was a major driver to new record high levels of OMNOVA's key raw material costs during the quarter."