Solutia Sales Up 20 Percent in Second Quarter

St. Louis, MO, July 28, 2008–Solutia Inc. reported a net loss of $16 million for the second quarter, compared to net income of $56 milllion a year ago.

Net sales were $1.09 billion, a 20 percent increase over net sales of $911 million for the same period in 2007.

Solutia’s results were impacted by one time events totaling an after-tax loss of $33 million in 2008 and an after-tax gain of $10 million in 2007. After consideration of these special items in both periods, income held steady at $17 million in the second quarter of 2008 or $.28 per share.

“We are pleased to report solid second quarter growth, driven by strong volumes and price increases across our businesses,” said Jeffry N. Quinn, chairman, president and chief executive officer.

“Importantly, even though the escalation of raw materials accelerated in the second quarter compared to the first, our focused pricing actions and strong market positions allowed us to recover a significant percentage of this cost increase. We also continued to benefit from our geographically diverse business, as international growth — particularly in China — more than offset softening domestic markets.”

Quinn added, “In addition to producing strong results during the second quarter, we announced two important strategic developments which will have the potential to further enhance our transformation to a high-margin pure play specialty chemical company. We retained HSBC to review strategic alternatives for the nylon business, and laid the foundation for a key longer-term growth opportunity by establishing our Saflex Photovoltaic business.”