Wellman Posts 3Q Loss, Seeks Alternatives

Fort Mill, SC, October 30, 2007--Wellman reported a narrower quarterly loss on Monday, but said its board of directors was evaluating strategic options for the company.

The company reported a third-quarter loss from continuing operations of $26.3 million, or $0.81per share, compared with a loss of $37.9 million, or $1.19 per share, in the same period a year earlier.

It said it has hired investment bank Lazard Freres & Co LLC, which had extensive experience in chemical merger and acquisitions transactions, to help it explore its options. The company did not detail possible options but said it hopes to explore alternatives before it begins refinancing its debt in 2008.

Wellman said it expects to streamline operations to reduce costs by $20 million to $25 million in 2008, compared to 2007.

The company said competitive pressures from new resin in the North American market hurt its results.

Wellman posted net sales of $270.8 million in the third quarter, down from the $307.6 million the company posted in the third quarter of 2006.

However, the company said it was able to reduce its outstanding debt by $21.2 million in the quarter, primarily due to the sale of its European recycled-based fiber business.