Solutia Demands Completion of Financial Package

St. Louis, MO, February 4, 2008--Solutia Inc. has issued a formal demand to the lead arrangers of the company's exit financing package to fund their commitment on Feb. 6, according to a regulatory filing Friday with the Securities and Exchange Commission.

The arrangers said they would not meet the request.

Solutia sent a letter to Citigroup Global Markets Inc., Goldman Sachs Credit Partners LP, Deutsche Bank Trust Co. Americas and Deutsche Bank Securities Inc. stating that they are required to fund their commitments on Feb. 6 and failure to do so will be a breach of their obligations.

The arrangers reiterated that conditions in the credit markets won’t allow them to complete the exit financing they committed to in October 2007.

In October, Solutia Inc. received a fully underwritten commitment for $2 billion of exit financing, which would be used to pay creditors upon Solutia's emergence from Chapter 11 bankruptcy.

The package includes a $400 million senior secured asset-based revolving credit facility, a $1.2 billion senior secured term loan facility, and a $400 million senior unsecured bridge facility.

Solutia filed for Chapter 11 bankruptcy in December 2003.