Solutia Emerges From Bankruptcy a Stronger Firm

St. Louis, MO, February 28, 2008 – Solutia Inc. emerged from Chapter 11 bankruptcy reorganization on Thursday.

“Solutia has emerged as a well positioned specialty chemicals and performance materials company with market-leading global positions and a diverse portfolio of high potential businesses,” said Jeffry N. Quinn, chairman, president and chief executive officer.

“We believe we are a stronger, healthier and more competitive company than at any point in our history. Over the past four years, we have transformed our portfolio through strategic acquisitions, internal investments, asset dispositions, and the re-deployment of significant nylon assets to higher-value uses.”

During its time in Chapter 11, Solutia has diversified from both an end-market and a geographic perspective. In 2007, the company’s net sales from outside the U.S. were 55 percent of the total revenue, compared to 39 percent in 2003. The increase has been driven primarily by Solutia’s Asian growth strategy, as well as significant growth in Europe.

“During this period, we have made great strides in improving our financial position by reducing legacy liabilities, enhancing and focusing the business portfolio and delivering strong revenue and operating earnings growth and momentum,” said James M. Sullivan, senior vice president and chief financial officer. “With a strong balance sheet and more than 50 percent of our portfolio growing at greater than two times global GDP, we believe we are positioned to deliver increased shareholder value.”

Solutia’s $2.05 billion exit financing facility was funded by Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc.

The new common stock of reorganized Solutia is scheduled to begin trading on the New York Stock Exchange under the ticker symbol SOA on Monday, March 3.