Omnova Solutions Reports Smaller Loss

Fairlawn, OH, June 17, 2008--Omnova Solutions Inc. reported a net loss of $3.1 million, or $0.07 per diluted share, for the second quarter ended May 31, compared to a net loss of $9.8 million, or $0.23 per diluted share, a year ago.

Included in the second quarter of 2007 were debt redemption and restructuring costs of $12.5 million.

Net sales increased $31.7 million, to $219.7 million, compared to $188.0 million during the same period a year ago. Contributing to the second quarter increase were sales of $24.0 million from the Decorative Products Asian businesses acquired in the first quarter of 2008, favorable pricing of $11.4 million and positive foreign exchange translation of $0.1 million partially offset by net volume declines of $3.8 million.

The volume declines primarily occurred in two product lines sold to the residential housing industry: Performance Chemicals' carpet business and Decorative Products' laminate business. Volume declines were partially offset by volume increases in Performance Chemicals' paper chemicals business. Excluding the Decorative Products Asian businesses, the company's sales grew $7.7 million or 4.1%.

"Our priority to improve profitability continued to be challenged by record setting raw material inflation during the quarter," said Kevin McMullen, Omnova Solutions' CEO.

"Late in the second quarter, we implemented price increases at both Decorative Products and Performance Chemicals with minimal loss of volume. However, as oil has continued to climb as high as $139 a barrel, we have experienced new record high costs for Omnova's major raw materials during our third quarter starting in June. In response, we have announced additional price increases of up to 30 percent across many of our Performance Chemicals products."