Solutia Earnings Down on Charges, But Sales Rise

St. Louis, MO, February 28, 2008– Solutia Inc. reported Wednesday that its net loss more than tripled in the fourth quarter on special charges although sales increased substantially.

In a filing with the Securities and Exchange Commission, Solutia said it lost $145 million, or $1.39 per share, in the quarter, compared with a loss of $45 million, or 43 cents per share, a year ago.

However, for the year, excluding special charges of $293 million related to its bankruptcy reorganization, income surged 294% from the previous year to $71 million.

Sales for the quarter rose to $961 million from $697 million.

For the full year, the company reported a loss of $208 million, or $1.99 per share, compared with a profit of $2 million, or 2 cents per share, in 2006. Revenues rose to $3.54 billion from $2.8 billion.

Solutia is scheduled to emerge from Chapter 11 bankruptcy today.