Solutia Sees Higher Sales in Third Quarter

St. Louis, MO, Oct. 29, 2008--Solutia Inc. reported a 29% increase in net sales in the third quarter and consolidated net income of $24 million from continuing operations.

The firm had a net loss of $134 million for the same period last year but after special items of $159 million last year's income was $25 million.

For the quarter, Solutia posted earnings per share from continuing operations of $.32.

Consolidated EBITDA for the third quarter increased to $108 million from $65 million in 2007.

"Solutia delivered strong sales and EBITDA growth during the third quarter," said CEO Jeffry N. Quinn.

"This performance is driven by our global leadership positions, geographic and end-market diversification, and our favorable cost positions across our entire portfolio of specialty materials businesses."

Solutia reported results from its nylon segment as discontinued operations. Net income from discontinued operations decreased $54 million in comparison to the third quarter 2007.

The third quarter of 2007 benefited from a one time $22 million customer contract termination. In addition, the current quarter results of the nylon business were hurt by $18 million from the effect of Hurricane Ike.

Finally, higher raw material costs were not fully offset by increased selling prices.

"Our process of exploring strategic alternatives for the nylon business continues to progress," added Quinn.