Solutia Earnings Down on Charges, But Sales Rise

St. Louis, MO, February 28, 2008-- Solutia Inc. reported Wednesday that its net loss more than tripled in the fourth quarter on special charges although sales increased substantially.

In a filing with the Securities and Exchange Commission, Solutia said it lost $145 million, or $1.39 per share, in the quarter, compared with a loss of $45 million, or 43 cents per share, a year ago.

However, for the year, excluding special charges of $293 million related to its bankruptcy reorganization, income surged 294% from the previous year to $71 million.

Sales for the quarter rose to $961 million from $697 million.

For the full year, the company reported a loss of $208 million, or $1.99 per share, compared with a profit of $2 million, or 2 cents per share, in 2006. Revenues rose to $3.54 billion from $2.8 billion.

Solutia is scheduled to emerge from Chapter 11 bankruptcy today.