PolyOne Increases Income Outlook for First-Quarter 2005

March 8, 2005

- Continuing business revenues and income track earlier expectations

CLEVELAND, March 8, 2005 /PRNewswire-FirstCall via COMTEX/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, today reaffirmed its expectation that revenues from
continuing operations in first-quarter 2005 should increase between 12 percent
and 15 percent over fourth-quarter 2004 revenues. Volume shipments should
improve in the previously projected range of 5 percent to 7 percent, with the
balance of revenue increases driven by higher product prices and foreign

Due to success in raising product prices, PolyOne continues to anticipate
sequential margin improvement. The Company projects that sales and margin
improvements will result in an operating income increase from continuing
operations of $13 million to $20 million over fourth-quarter 2004. Included
in this total is an increase in Resin and Intermediates (R&I) segment
operating income that is larger than previously anticipated.

As earlier projected, the R&I segment should continue in the first quarter
to benefit from increasing market prices for polyvinyl chloride (PVC) resins
and caustic soda, and from an increase in PVC resin demand compared with the
fourth quarter. PVC resin and chlor-alkali margins are strengthening more
rapidly than previously anticipated; consequently, PolyOne now expects R&I
operating income to improve between $5 million and $8 million in the first
quarter compared with fourth-quarter 2004.

As a result of an improved shipment outlook for the Specialty Resins
business, net income from discontinued operations should be higher than the
Company's earlier projection. PolyOne now anticipates that net income for
discontinued operations will increase between $2 million and $3 million in the
first quarter compared with the fourth quarter.

For 2005, PolyOne continues to project cash generation levels approaching
those realized in 2004, before any divestments. As previously disclosed,
however, strong sequential first quarter revenue growth carries with it a
significant build in working capital and results in negative cash flow for the

PolyOne First-quarter 2005 Earnings Release and Conference Call

PolyOne will release its first-quarter 2005 earnings after the close of
business on Thursday, April 28, 2005, and will host a conference call at
10:00 a.m. Eastern time on Friday, April 29, 2005. The conference dial-in
number is 888-489-0038 (domestic) or 706-643-1611 (international), conference
topic: PolyOne Earnings Call. The replay number is 800-642-1687 (domestic) or
706-645-9291 (international). The conference ID for the replay is 9931951.
The call will be broadcast live and then via replay for two weeks on the
Company's Web site at http://www.polyone.com .

About PolyOne

PolyOne Corporation, with 2004 annual revenues of approximately
$2.2 billion, is a leading global compounding and North American distribution
company with continuing operations in thermoplastic compounds, specialty
polymer formulations, color and additive systems, and thermoplastic resin
distribution. Headquartered in northeast Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America and South America. Information on PolyOne's
products and services can be found at http://www.polyone.com .

Forward-looking Statements

In this press release, statements that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements give current expectations or forecasts of future events and
are not guarantees of future performance. They are based on management's
expectations that involve a number of business risks and uncertainties, any of
which could cause actual results to differ materially from those expressed in
or implied by the forward-looking statements. You can identify these
statements by the fact that they do not relate strictly to historic or current
facts. They use words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe" and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance.
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand;
future performance or results of current and anticipated market conditions and
market strategies; sales efforts; expenses; the outcome of contingencies such
as legal proceedings; and financial results. Factors that could cause actual
results to differ materially include, but are not limited to:

  • the effect on foreign operations of currency fluctuations, tariffs,
    nationalization, exchange controls, limitations on foreign investment
    in local businesses and other political, economic and regulatory risks;
  • changes in U.S., regional or world polymer consumption growth rates
    affecting PolyOne's markets;
  • changes in global industry capacity or in the rate at which anticipated
    changes in industry capacity come online in the polyvinyl chloride
    (PVC), chlor-alkali, vinyl chloride monomer (VCM) or other industries
    in which PolyOne participates;
  • fluctuations in raw material prices, quality and supply and in energy
    prices and supply, in particular fluctuations outside the normal range
    of industry cycles;
  • production outages or material costs associated with scheduled or
    unscheduled maintenance programs;
  • costs or difficulties and delays related to the operation of joint
    venture entities;
  • lack of day-to-day operating control, including procurement of raw
    materials, of equity or joint venture affiliates;
  • partial control over investment decisions and dividend distribution
    policy of the OxyVinyls partnership and other minority equity holdings
    of PolyOne;
  • an inability to launch new products and/or services within PolyOne's
    various businesses;
  • the possibility of further goodwill impairment;

  • an inability to maintain any required licenses or permits:
  • an inability to comply with any environmental laws and regulations;
  • the cost of compliance with environmental laws and regulations,
    including any increased cost of complying with new or revised laws and
  • unanticipated developments that could occur with respect to
    contingencies such as litigation and environmental matters, including
    any developments that would require any increase in our costs and/or
    reserves for such contingencies;
  • an inability to achieve or delays in achieving or achievement of less
    than the anticipated financial benefit from initiatives related to
    restructuring programs, including cost reduction and employee
    productivity goals;
  • a delay or inability to achieve targeted debt level reductions through
    divestitures and/or other means;
  • an inability to access the revolving credit facility and/or the
    receivables sale facility as a result of breaching covenants due to not
    achieving anticipated earnings performance;
  • any poor performance of our pension plan assets and any obligation on
    our part to fund PolyOne's pension plan;
  • any delay and/or inability to bring the North American Color and
    Additives Masterbatch and the Engineered Materials product platforms to
  • an inability to raise prices or sustain price increases for products;
    - an inability or delay beyond December 31, 2005, in finding buyers of
    discontinued operations or other non-core assets for reasonable and
    acceptable terms;
  • an inability to achieve anticipated earnings performance due to the
    divestment of a non-core business prior to March 31, 2005;
  • an inability to complete the sale of discontinued businesses due to
    problems or delays associated with legal proceedings, regulatory
    approvals and/or buyers receiving financing for the transaction or any
    other reasons; and
  • a delay in the completion of the China plant slated for startup in the
    second quarter 2005.

We cannot guarantee that any forward-looking statement will be realized,
although we believe we have been prudent in our plans and assumptions.
Achievement of future results is subject to risks, uncertainties and
inaccurate assumptions. Should known or unknown risks or uncertainties
materialize, or should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or projected.
Investors should bear this in mind as they consider forward-looking

We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise. You are
advised, however, to consult any further disclosures we make on related
subjects in our reports on Form 10-Q, 8-K and 10-K provided to the Securities
and Exchange Commission. You should understand that it is not possible to
predict or identify all risk factors. Consequently, you should not consider
any such list to be a complete set of all potential risks or uncertainties.
(Ref. #2305)

SOURCE PolyOne Corporation

PolyOne Investor & Media, Dennis Cocco, Vice President, Investor Relations &

Communications of PolyOne Corporation, +1-440-930-1538


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