Solutia Noteholders To Receive Cash

St. Louis, MO, January 17, 2008--Solutia Inc. said it has reached a settlement with the Bank of New York regarding senior secured notes.

Noteholders will receive $220.5 million in cash plus all accrued but unpaid interest through the effective date of Solutia's plan of reorganization, which the company anticipates will be later this month.

The settlement has to be approved by the U.S. Bankruptcy Court for the Southern District of New York.

Solutia reported that as of Sept. 30, the bankruptcy court had approved paying or honoring $223 million in 11.25 percent notes due 2009.

Solutia, which was spun off from Monsanto Co. in 1997, filed for Chapter 11 bankruptcy in December 2003. A federal court approved Solutia's reorganization plan in November.