Solutia To Report Strong Sales, But Nylon Down

St. Louis, MO, Oct. 20, 2008--Solutia Inc. said it expects to report third quarter net sales of $587 million, a 29 percent increase over the prior year period, and adjusted EBITDA is anticipated to be $111 million, a 46 percent increase over 2007.

Solutia said the results, which exclude its nylon business, were driven by a combination of volume, price and manufacturing improvements.

"We believe our three specialties businesses, which comprise the going-forward Solutia portfolio, represent some of the most valuable franchises in the specialty chemicals sector," said Jeffry N. Quinn, chairman, president, and CEO of Solutia Inc.

"Although we are mindful of slowing global economic conditions, we anticipate these businesses will meet previously announced earnings guidance for the year."

Effective with the third quarter, Solutia will report results from its three specialties segments as continuing operations and report results from its nylon segment as discontinued operations.

Solutia said it anticipates a "disposition" of the assets of its nylon business by the end of the first quarter of next year.

The discontinued nylon segment expects to report third quarter net sales of $506 million and an adjusted EBITDA loss of $5 million. These results were negatively impacted by Hurricane Ike as well as deteriorating markets in nylon intermediates and nylon carpet fibers.

The Nylon chemical plant in Alvin, Texas, which had been shut down in advance of Hurricane Ike, resumed normal operations in early October. The estimated cost of property damage incurred at the site is approximately $10 million, which is being excluded from the Company's adjusted EBITDA. Lost profits and other business interruption cost impacts of $8 million from the hurricane are included in adjusted EBITDA.