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PolyOne Reports Best Full-Year, Fourth-Quarter Results Since Formation

February 3, 2005

- Fourth-quarter, full-year income improves substantially over 2003

CLEVELAND, Feb 03, 2005 /PRNewswire-FirstCall via COMTEX/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, today reported sales from continuing operations of
$515.9 million for the fourth quarter ended December 31, 2004, an increase of
$41.9 million, or 9 percent, compared with the fourth quarter of 2003.

"Our strategy in 2004 was to set clear, measurable objectives that would
position our business for success, focus on these goals and execute our plans
well," said Thomas A. Waltermire, president and chief executive officer. "We
achieved our important growth objectives in addition to solidifying our
balance sheet through our debt reduction initiatives, improving our North
American Color and Engineered Materials business units, and lowering our
overall cost structure."

Operating income from continuing operations was $16.2 million for the
fourth quarter of 2004, a $24.1 million improvement over the same period in
2003. PolyOne reported a net loss of $13.6 million, or $0.15 per share - a
substantial improvement over a net loss of $182.6 million, or $2.00 per share,
reported in the fourth quarter of 2003.

In the 2004 fourth quarter, special items for continuing and discontinued
operations combined totaled $16.4 million after tax and reduced earnings per
share by $0.18. A definition and a detailed list of special items appear in
Attachment 4.

The 2003 fourth-quarter net loss included special items before taxes of
$170.9 million, including a pre-tax non-cash charge of $130.5 million
associated with the planned disposition of three non-core businesses. The
charge represented an estimated impairment in the net assets of the
discontinued operations held for sale.

For full-year 2004, revenues from continuing operations increased
$197.0 million, or 10 percent, compared with 2003. Operating income from
continuing operations increased $123.6 million, a substantial improvement
driven by a balance of factors, including shipment volume improvements, a
reduced cost structure and improved earnings from the Resin and Intermediates
(R&I) segment.

"Our success in generating this significant income improvement resulted
from three years of dedicated effort at every level of our organization to
reduce our overall cost structure in every operating unit while capturing
growth, particularly in North America," Waltermire said.

Progress on Priorities

    PolyOne outlined four priorities at the beginning of 2004:

     - Reduce debt by $200 million to $300 million through non-core asset
       sales and operating cash flow: PolyOne reduced its debt, including the
       SunBelt Chlor-Alkali guarantee and pension obligation, by approximately
       $234 million in 2004.  Since January 1, 2004, the Company has reduced
       its long-term debt and receivables sale facility drawings by
       $164.4 million.  At the end of the fourth quarter, PolyOne had no
       drawings under either its revolving credit facility or its receivables
       sale facility.  During the fourth quarter, the Company made a voluntary
       contribution of $65 million to its defined benefit pension plans, which
       will eliminate pension funding obligations for 2005 and 2006.

       Net cash provided by operating activities was a negative $51.6 million
       for the full-year 2004.  Operating cash flow as defined in Attachment 5
       was a positive $96 million for the full year, a substantial improvement
       over 2003.  Contributing to this increase were significant improvements
       in working capital efficiency, stronger earnings and lower
       restructuring outflows.

       As a result of debt reduction and earnings improvements, the debt
       coverage ratio (calculated as defined in PolyOne's bank facility
       covenant test) declined substantially to 3.97 at the end of 2004
       from 12.5 at the end of 2003.

     - Return two core businesses to profitability: PolyOne continued making
       progress toward its objective to return the North American Color and
       Additives Masterbatch and Engineered Materials units to acceptable
       profitability.  At the end of 2004, combined operating income from
       these businesses had improved by approximately $24 million compared
       with 2003.  While not yet profitable on an operating income basis,
       these businesses combined generated positive operating cash flow during
       2004.

     - Bring overhead costs of continuing businesses under 10 percent of
       sales: Selling and administrative (S&A) costs for the continuing
       businesses were 9.3 percent of sales in 2004, down from 12.3 percent in
       2003 and 14.1 percent in 2002.

     - Grow the top line: Revenue for 2004 was 10 percent higher compared with
       2003, and shipments for continuing operations improved 5 percent over
       the same period.  A number of factors contributed to this improvement,
       including: PolyOne's acquisition in early 2004 of the North American
       plastics distribution business ResinDirect, a subsidiary of Louis
       Dreyfus Energy Services; the startup of a new thermoplastic elastomers
       (TPE) manufacturing line in Europe; the significantly improved business
       climate for North American plastics markets and, in particular, the
       wire and cable industry; new business applications, including an
       important outdoor decking application for the North American Color
       Additives business; and the commitment of significant resources that
       helped further the development of nanocomposite applications.

       With the anticipated completion of a third China manufacturing
       operation in the second quarter of 2005, PolyOne will have a strong
       base for additional leverage and growth within Asia in 2005.

    A Note on Accounting for Discontinued Operations

In accordance with Generally Accepted Accounting Principles (GAAP),
PolyOne segregates and reports results of discontinued operations net of tax
as a separate line item on the statement of operations (income statement).
Income or loss from discontinued operations is reported below operating income
- continuing operations on the income statement. As a result, reporting and
discussion of items above the operating income - continuing operations line
(such as sales, operating income, interest, and selling and administrative
costs) includes only the results of continuing operations.

Quarterly Summary of Consolidated Operating Results
               (In millions of dollars, except per share data)

                                  4Q04     4Q03     3Q04      FY04      FY03
    Operating results:
    Sales - continuing
     operations                  $515.9   $474.0   $552.1  $2,161.5  $1,964.5

    Operating income (loss) -
     continuing operations        $16.2    $(7.9)   $37.8    $119.6     $(4.0)

    Net Income (loss) -
     total Company               $(13.6) $(182.6)   $11.6     $23.5   $(251.1)
    Income (loss) from
     discontinued operations -
     after tax                     (2.8)  (152.7)    (0.2)      4.9    (155.8)
    Income (loss) before
     discontinued operations      (10.8)   (29.9)    11.8      18.6     (95.3)

    Earnings (loss) per share -
     diluted:
    Net income (loss) -
     total Company               $(0.15)  $(2.00)   $0.13     $0.26    $(2.76)
    Income (loss) from
     discontinued operations      (0.03)   (1.67)    0.00      0.06     (1.71)
    Income (loss) before
     discontinued operations      (0.12)   (0.33)    0.13      0.20     (1.05)
    Per share impact of special
     items - after tax:
      Before discontinued
       operations                 (0.14)   (0.27)   (0.04)    (0.21)    (0.84)
      Discontinued operations     (0.04)   (1.68)   (0.04)    (0.16)    (1.76)

    Other data:
    Sales - discontinued
     operations                   $56.1   $134.9    $85.4    $452.0    $571.4
    Depreciation and amortization:
      Before discontinued
       operations                  12.3     12.8     11.4      50.9      51.4
      Discontinued operations         -      4.3        -         -      21.7

    A discussion appears at the end of this press release on the use of non-
    GAAP financial measures.


    Fourth-quarter and Full-year 2004 Highlights (see Attachment 7)

    Total Company

Operating income from continuing operations before special items in the
fourth quarter of 2004 was up $9.0 million compared with the fourth quarter of
2003. This increase resulted from balanced improvements in sales volumes,
plant and S&A costs, and R&I earnings. Operating income from continuing
operations, however, declined by $21.6 million in the fourth quarter of 2004
compared with the third quarter of 2004. Before special items, this decline
was $25.0 million. The adverse impact of lower seasonal sales volumes,
reduced margins in Performance Plastics and lower R&I earnings more than
offset lower plant and S&A costs.

Income from discontinued operations (Specialty Resins and Engineered
Films) declined by $2.2 million compared with the third quarter of 2004,
primarily as a result of the loss of income from the Elastomers and
Performance Additives unit, which was sold in August 2004. Before special
items, this decline was $2.6 million. Compared with the fourth quarter of
2003, however, income from discontinued operations improved $23.1 million.
Before special items, the improvement was $2.3 million. The Company
recognized $21.4 million in special items in fourth-quarter 2003, primarily
for employee separation and plant phase-costs associated with restructuring
initiatives in the discontinued operations.

- Performance Plastics Segment
          - Vinyl Compounds - Fourth-quarter 2004 shipments were down
            seasonally from the third quarter in all markets with the
            exception of pipe fittings.  Fourth-quarter shipments, however,
            reflected a 6 percent increase compared with the fourth quarter of
            2003, led by strong demand in wire and cable.  Pricing improved
            only slightly in fourth-quarter 2004 compared with the third
            quarter.

            For the full year, vinyl compound sales and shipments improved 12
            percent and 9 percent, respectively, reflecting this business'
            market strength, higher pricing and an improved economy.

          - Formulators - Shipments and revenues were down 10 percent and 8
            percent,  respectively, in the fourth quarter of 2004 versus the
            third quarter, primarily a result of normal seasonality.  Compared
            with fourth-quarter 2003, revenues were up 8 percent as a result
            of new business, improved pricing and stronger screen printing ink
            sales.

            For the full year, revenues increased 2 percent compared with
            2003, led by vinyl screen printing inks growth and higher selling
            prices.  Shipments were down 3 percent in the same period,
            affected primarily by automotive applications in models that have
            been phased out.

          - International - Seasonal weakness and a general economic softness
            in Europe led to an International sales decline of 5 percent from
            the third quarter of 2004.  Fourth-quarter 2004 shipments were
            down 14 percent from the third quarter, a greater amount than
            revenues due to the strengthening euro.  Compared with the fourth
            quarter of 2003, however, shipments increased 3 percent, excluding
            shipments from the Melos(R) rubber granulates business in the 2003
            fourth quarter.  The rubber granulates business was sold on
            May 31, 2004.

            For the year, International sales increased 8 percent compared
            with 2003.  Currency exchange increased revenues $35 million.
            Excluding Melos shipments, overall international shipments
            increased nearly 6 percent, led by Asia, which was up 12 percent.

            In January 2005, PolyOne completed the purchase of the remaining
            16 percent of equity ownership in Star Color, a color additives
            manufacturing subsidiary in Thailand.

          - North American Color - Fourth-quarter revenues increased 1
            percent versus third-quarter 2004 on 3 percent less shipment
            volume, a result of higher selling prices and more favorable
            product mix.  Fourth-quarter revenues increased 19 percent on a 17
            percent improvement in shipments compared with fourth-quarter
            2003, driven by improved quality, service and a strengthening of
            the unit's market position.

            For the full year, Color made great progress toward re-
            establishing itself as a market leader.  Sales improved 7 percent
            while shipment volume increased 20 percent.

          - North American Engineered Materials - While revenues in the fourth
            quarter decreased 7 percent from the third-quarter level, volumes
            decreased slightly less as the business took steps to replace low-
            priced tolling business with more specialty business.  A similar
            trend is evident in the comparison of fourth-quarter 2004 with
            fourth-quarter 2003 results.

            For 2004, revenues increased 3 percent over the prior year.
            Income increased significantly on a lower cost structure and
            improved business mix.

     - Distribution Segment: Fourth-quarter revenues decreased 2 percent from
       third-quarter levels, while shipments declined 8 percent due to
       seasonal slowing.  The smaller sales decline was due to higher selling
       prices that PolyOne passed on from its supplier base.  Compared with
       the fourth quarter of 2003, sales increased 15 percent while shipments
       were up 4 percent.  The difference between sales and shipments was
       primarily the result of the closing of the Mexico operation.  The solid
       year-over-year growth was driven by higher commodity resin sales,
       achieved as a result of the ResinDirect acquisition, and continued
       growth in PolyOne branded product sales.

       Distribution sales increased $77.1 million, or 15 percent, for the full
       year compared with 2003, led by a 9 percent increase in shipments.
       Eliminating the impact of the Mexican operations during 2003, full year
       sales in the U.S. and Canada were up 20 percent on a 15 percent
       increase in shipments.

     - Resin and Intermediates Segment: Both Oxy Vinyls, LP and SunBelt Chlor-
       Alkali benefited from improved caustic soda prices in the fourth
       quarter of 2004 compared with the third quarter.  OxyVinyls' income
       decreased in the fourth quarter, however, due primarily to a lower
       average industry resin margin spread over raw materials and the typical
       seasonal slowing in polyvinyl chloride (PVC) demand.  In the fourth
       quarter of 2004, industry average ethylene costs rose more than 6 cents
       per pound, while industry average PVC resin increased an average of
       only 2.5 cents.

    First-quarter 2005 Business Outlook

"Our first-quarter focus is on growing our businesses organically and
restoring our margin spread over raw materials," said Waltermire. "Although
we face some challenges, especially from continuing key raw material cost
increases, our customers are optimistic about business conditions. In this
economic environment, we intend to maximize every opportunity to improve sales
and strengthen our market position."

Because the first quarter is generally stronger seasonally than the fourth
quarter, PolyOne anticipates that revenues from continuing operations should
increase in a range of 12 percent to 15 percent over fourth-quarter 2004
revenues. Contributing to this estimated sales increase are projected volume
shipment improvements of 5 percent to 7 percent and expected price increases
of 4 percent to 5 percent, with the balance expected to come from foreign
exchange due to the weaker U.S. dollar. Volume shipments in North America
were slow to develop in early January, but started to build toward the end of
the month.

Although all of PolyOne's operating units raised prices in the fourth
quarter of 2004, additional raw material, additive and freight costs are
expected to pressure margins in the first quarter of 2005. Nevertheless,
PolyOne expects modest sequential margin improvement, but does not expect to
see margin recovery to mid-2004 levels until later in 2005. Of particular
note are the downstream vinyl operating businesses, which are being adversely
affected by escalating PVC resin, ethylene and chlorine costs as well as price
increases in various compound additives.

These anticipated sales and margin improvements, partially offset by
anticipated cost increases from adverse discount interest rate movements
affecting benefit cost projections, result in an expected operating income
increase from continuing operations of $11 million to $17 million over fourth-
quarter 2004. Included in this total is an increase in expected R&I segment
operating income.

The R&I segment should continue to benefit in the first quarter from
increasing market prices for PVC resins and caustic soda and an increase in
PVC resin demand compared with the fourth quarter. Partially offsetting these
factors are anticipated higher energy and derivative feedstock costs. Average
PVC resin industry prices are projected to raise the first quarter average 3
cents to 4 cents per pound higher due to increases realized during the fourth
quarter and announced for the first quarter. Ethylene costs are expected to
be at least 2 cents to 3 cents higher in the first quarter, principally
reflecting increases realized during the fourth quarter. The combination of
these factors is expected to increase R&I operating income between $3 million
and $5 million in the first quarter compared with the fourth quarter.

As a result of improved selling prices and shipments for Specialty Resins
and Engineered Films, net income from discontinued operations should increase
between $1 million and $2 million in the first quarter compared with the
fourth quarter.

Interest costs should be approximately $1 million lower in the first
quarter compared with the fourth quarter, due to fourth-quarter debt
retirements.

PolyOne will continue to maintain a full valuation allowance associated
with U.S. federal taxes. Consequently, PolyOne's financial statement net
income will reflect only foreign tax liabilities. The Company expects the
effective foreign tax rate to remain at approximately 25 percent.

PolyOne projects continuing strong operating cash generation for 2005,
before considering business divestments. The Company expects cash generation
levels to approach those realized in 2004. Cash flow in 2004 benefited from
substantially improved working capital efficiency, higher earnings and lower
outlays associated with previously announced restructuring initiatives. These
general trends are expected to continue into 2005. Embedded in the Company's
annual projection, however, is an anticipated substantial working capital
build in the first quarter that results in negative cash generation in the
quarter due to strong sequential revenue growth.

PolyOne expects a number of additional factors to affect 2005 cash flow:
     - Capital expenditures, including discontinued operations, are projected
       at $40 million to $45 million compared with 2004 spending of
       $28.5 million;
     - Restructuring expenditures should be minimal compared with
       $22.5 million in 2004;
     - No contributions to the qualified pension plan will be required in 2005
       and 2006, a result of the $65 million voluntary contribution in 2004;
     - Approximately $47 million remains outstanding on debt maturing in 2005;
     - The Company has targeted further reductions in its internal working
       capital as a percentage of sales metric; and
     - Interest costs should be $5 million to $6 million lower in 2005, before
       consideration of further early debt retirements.

    In-quarter Update Policy

PolyOne intends to release an in-quarter update some time during March,
the final month of the quarter. The purpose of this release is to inform
investors of any material changes to major business drivers as discussed in
the "Outlook" section of earnings releases and Form 10-Q or 10-K.

Use of Non-GAAP Financial Measures

This press release includes the use of both GAAP (generally accepted
accounting principles) and non-GAAP financial measures. The non-GAAP
financial measures are: operating cash flow, operating income (loss) before
special items on a consolidated basis and per share impact of special items.
The most directly comparable GAAP financial measures are: net cash used
(provided) by operating activities, operating income (loss) and income (loss)
per share.

When PolyOne's chief operating decision makers review consolidated and
segment results, special items are excluded from operating income and are
evaluated on a per share basis to enhance understanding of current
profitability levels and how current levels may serve as a base for future
performance. PolyOne's chief operating decision makers also use these non-
GAAP financial measures for decisions regarding allocation of resources. In
addition, operating income before special items is a component of the PolyOne
Annual Incentive Plan at the corporate level and is used in debt covenant
computations. PolyOne's chief operating decision makers also use operating
cash flow as an internal measure of cash generation from operations, and it is
also a component of the PolyOne Annual Incentive Plan at the corporate level.

PolyOne is providing these non-GAAP financial measures because it believes
they offer investors a top-level management view of the Company's financial
performance and enhances investor understanding of current profitability
levels and how current levels may serve as a base for future performance.

Special items recognized during 2004 and 2003 include charges related to
specific strategic initiatives such as the consolidation of operations,
restructuring activities such as employee separation costs resulting from
personnel reduction programs, plant closure and phase-out costs, asset
impairments, environmental remediation costs for facilities no longer owned or
closed in prior years, gains and losses on the divestiture of joint ventures
and equity investments, adjustments to reflect a tax benefit on domestic
operating losses and deferred tax valuation allowances on domestic operating
losses.

Tables included in this press release reconcile each non-GAAP financial
measure to the most directly comparable GAAP financial measure (Attachment 5)
and provide detail on special items (Attachment 4). Also attached are
standard financial schedules and a summary of segment results.

PolyOne Fourth-Quarter 2004 Conference Call

PolyOne will host a conference call at 10:00 a.m. Eastern time on Friday,
February 4, 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 $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
       regulations;
     - 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
       profitability;
     - 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
statements.

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)

Attachment 1
                     PolyOne Corporation and Subsidiaries
         Condensed Consolidated Statements of Operations (Unaudited)
                     (In millions, except per share data)

                            Three Months Ended           Year Ended
                               December 31,              December 31,
                             2004         2003         2004         2003
    Sales                   $515.9       $474.0     $2,161.5     $1,964.5
    Operating costs and
     expenses:
      Cost of sales          460.2        403.0      1,837.5      1,664.7
      Selling and
       administrative         41.9         56.2        201.2        240.8
      Depreciation and
       amortization           12.3         12.8         50.9         51.4
    Employee separation
     and plant phase-out       0.1          9.0         (1.4)        35.1
    Asset impairments          3.8          8.0          3.8          8.0
    Environmental remediation
     at inactive sites           -          1.6          8.7          2.7
    Loss on sale of assets       -            -          5.9          0.3
    Income from equity
     affiliates and minority
     interest                (18.6)        (8.7)       (64.7)       (34.5)
    Operating income (loss)   16.2         (7.9)       119.6         (4.0)
    Interest expense         (17.3)       (17.6)       (72.1)       (66.6)
    Other expense, net        (3.6)        (3.3)       (15.3)       (12.4)
    Income (loss) before
     income taxes and
     discontinued operations  (4.7)       (28.8)        32.2        (83.0)
    Income tax expense        (6.1)        (1.1)       (13.6)       (12.3)
    Income (loss) before
     discontinued
     operations              (10.8)       (29.9)        18.6        (95.3)
    Discontinued operations:
      Income (loss) from
       operations, net of
       income taxes           (2.8)      (152.7)         4.9       (155.8)
    Net income (loss)       $(13.6)     $(182.6)       $23.5      $(251.1)

    Income (loss) per share
     of common stock:
      Basic income (loss)
       per share before
       discontinued
       operations           $(0.12)      $(0.33)       $0.20       $(1.05)

      Discontinued
       operations            (0.03)       (1.67)        0.06        (1.71)
      Basic income (loss)
       per share            $(0.15)      $(2.00)       $0.26       $(2.76)
      Diluted income (loss)
       per share before
       discontinued
       operations           $(0.12)      $(0.33)       $0.20       $(1.05)

      Discontinued
       operations            (0.03)       (1.67)        0.06        (1.71)
      Diluted income (loss)
       per share            $(0.15)      $(2.00)       $0.26       $(2.76)

    Weighted average shares
     used to compute
     earnings per share:
      Basic                   91.6         91.1         91.6         91.1
      Diluted                 92.0         91.1         91.8         91.1



                                                                  Attachment 2
                     PolyOne Corporation and Subsidiaries
              Condensed Consolidated Balance Sheets (Unaudited)
                     (In millions, except per share data)

                                                   December 31,   December 31,
                                                       2004           2003
    Assets
    Current assets:
      Cash and cash equivalents                        $38.6          $48.7
      Accounts receivable, net                         309.7          263.5
      Inventories                                      196.0          196.9
      Deferred income tax assets                        20.1           26.9
      Other current assets                              17.7           17.7
      Discontinued operations                           34.6           52.1
        Total current assets                           616.7          605.8
      Property, net                                    441.2          486.1
    Investment in equity affiliates                    263.3          256.7
    Goodwill, net                                      321.0          334.0
    Other intangible assets, net                        10.1           20.2
    Other non-current assets                            59.6           53.2
    Discontinued operations                             59.9          144.9
      Total assets                                  $1,771.8       $1,900.9

    Liabilities and Shareholders' Equity
    Current liabilities:
      Short-term bank debt                              $2.3           $1.1
      Accounts payable                                 210.7          173.4
      Accrued expenses                                 102.4          111.1
      Current portion of long-term debt                 49.3           26.3
      Discontinued operations                           26.3           52.3
        Total current liabilities                      391.0          364.2
    Long-term debt                                     640.5          757.1
    Deferred income tax liabilities                     14.3           25.9
    Post-retirement benefits other than pensions       114.0          120.3
    Other non-current liabilities, including pensions  224.7          257.9
    Minority interest in consolidated subsidiaries       6.8            8.5
    Discontinued operations                              0.1            0.2
        Total liabilities                            1,391.4        1,534.1
    Shareholders' equity:
      Preferred stock, 40.0 shares
       authorized, no shares issued                        -              -
      Common stock, $.01 par, 400.0 shares
       authorized, 122.2 shares issued at
       December 31, 2004 and 2003                        1.2            1.2
      Other shareholders' equity                       379.2          365.6
        Total shareholders' equity                     380.4          366.8
        Total liabilities and shareholders' equity  $1,771.8       $1,900.9



                                                                  Attachment 3
                     PolyOne Corporation and Subsidiaries
         Condensed Consolidated Statements of Cash Flows (Unaudited)
                                (In millions)

                                                           Year Ended
                                                           December 31,
                                                        2004          2003
    Operating Activities
    Net income (loss)                                  $23.5       $(251.1)
      Income (loss) from discontinued operations         4.9        (155.8)
    Income (loss) from continuing operations            18.6         (95.3)
    Adjustments to reconcile income (loss) from
     continuing operations to net cash used by
     operating activities of continuing operations:
      Employee separation and plant phase-out charges   (1.4)         35.1
      Cash payments on employee separation and
       plant phase-out                                 (22.5)        (43.5)
      Charges for environmental remediation at
       inactive sites                                    8.7           2.7
      Cash payments on environmental remediation at
       inactive sites                                   (1.6)         (2.8)
      Voluntary payments to employee pension plans     (65.0)        (15.1)
      Depreciation and amortization                     50.9          51.4
      Loss on sale of assets                             5.9           0.3
      Companies carried at equity and minority
       interest:
        Income from equity affiliates                  (66.2)        (36.3)
        Minority interest expense                        1.5           1.8
        Dividends and distributions received            51.5          24.7
      Deferred income taxes                              0.5           4.5
      Change in assets and liabilities:
        Accounts receivable                            (38.0)          2.2
        FIFO inventories                                 1.1          24.3
        Accounts payable                                34.7         (31.3)
        Decrease in sale of accounts receivable        (70.7)        (89.2)
        Accrued expenses and other                      40.4          (9.6)
    Net cash used by operating activities of
     continuing operations                             (51.6)       (176.0)

    Investing Activities
      Capital expenditures                             (23.4)        (28.7)
      Return of capital by equity affiliates, net        8.3           3.9
      Business acquired, net of cash received           (6.7)        (15.8)
      Proceeds from sale of discontinued business,
       net of note receivable of $14.0                 101.5             -
      Proceeds from sale of assets                      32.2         (27.7)
    Net cash provided (used) by investing activities
     of continuing operations                          111.9         (12.9)

    Financing Activities
      Change in short-term debt                         24.1         (84.6)
      Change in long-term debt                        (117.8)        291.2
      Termination of interest rate swaps                (0.3)         (2.6)
      Proceeds from the exercise of stock options        0.3             -
      Debt issuance costs                               (0.4)        (15.0)
    Net cash provided (used) by financing
     activities of continuing operations               (94.1)        189.0

    Net cash provided by discontinued operations        24.6           4.2

    Effect of exchange rate on changes on cash          (0.9)          3.0

    Increase (decrease) in cash and cash equivalents   (10.1)          7.3
    Cash and cash equivalents at beginning of period    48.7          41.4
    Cash and cash equivalents at end of period         $38.6         $48.7



                                                                  Attachment 4
                     Summary of Special items (Unaudited)
                                (In Millions)

    Special
     Items ($mm)     4Q03      FY03    1Q04      2Q04      3Q04   4Q04   FY04

    Continuing operations
    Employee separation
     and plant phase
     -out costs(1)   (9.0)    (35.1)    0.2       1.0       0.3   (0.1)   1.4
    Period plant phase
     -out costs
     incurred(2)     (0.5)     (2.9)      -         -         -      -      -

    Asset
     Impairments(3)  (8.0)     (8.0)      -         -         -   (3.8)  (3.8)
    Environmental
     remediation
     at inactive
     sites(4)        (1.6)     (2.7)   (0.6)     (0.7)     (7.4)     -   (8.7)
    Loss on sale(5)   0.1      (0.2)      -      (5.7)     (0.2)     -   (5.9)
    Equity affiliate -
     cumulative effect
     of a change
     in accounting(6)   -      (0.8)      -         -         -      -      -
    Equity affiliate -
     employee
     separation(7)      -      (1.0)      -         -         -      -      -

      Impact on pre
       -tax income  (19.0)    (50.7)   (0.4)     (5.4)     (7.3)  (3.9) (17.0)
    Income tax benefit
     on above items   7.1      18.7     2.0       3.9       3.0    1.5    8.6
    Foreign dividend
     tax(9)             -     (24.0)      -         -         -      -      -

    Tax
     allowance(10)  (12.5)    (20.8)   (4.9)      3.4       1.2  (10.6) (10.9)

      Impact on net
       income from
       continuing
       operations   (24.2)    (76.8)   (5.1)      1.9      (3.1) (13.0) (19.3)
      Per share
       impact       (0.27)    (0.84)  (0.06)     0.03     (0.04) (0.14) (0.21)

    Discontinued
     operations

    Employee
     separation and
     plant phase
     -out costs(1)  (19.3)    (28.5)   (5.2)     (1.1)     (1.0)  (0.6)  (7.9)
    Period plant phase
     -out costs
     incurred(2)     (2.1)     (2.1)      -         -         -      -      -

      Impact on
       operating
       income       (21.4)    (30.6)   (5.2)     (1.1)     (1.0)  (0.6)  (7.9)

    Net asset
     impairment
     of discontinued
     operations(8) (130.5)   (130.5)      -      (9.9)     (5.4)  (6.0) (21.3)

      Impact on pre
       -tax income (151.9)   (161.1)   (5.2)    (11.0)     (6.4)  (6.6) (29.2)
    Income tax
     benefit on
     above items     40.0      43.5     2.0       4.3       2.5    2.6   11.4

    Tax
     allowance(10)  (41.0)    (42.1)    2.0       0.9      (0.2)   0.6    3.3

      Impact on net
       income from
       discontinued
       operations  (152.9)   (159.7)   (1.2)     (5.8)     (4.1)  (3.4) (14.5)
      Per share
       impact       (1.68)    (1.76)  (0.01)    (0.07)    (0.04) (0.04) (0.16)

      Impact on net
       income      (177.3)   (236.5)   (6.3)     (3.9)     (7.2) (16.4) (33.8)
      Per share
       impact       (1.95)    (2.60)  (0.07)    (0.04)    (0.08) (0.18) (0.37)

    Explanations:
    1.  Severance, employee outplacement, external outplacement consulting,
        lease termination, facility closing cost and the write-down of the
        carrying value of plant and equipment resulting from restructuring
        initiatives.
    2.  Costs associated with restructuring initiatives that were required to
        be recognized as period costs versus when the restructuring initiative
        was approved.  The third and fourth quarter expense under continuing
        operations is for the write-off of inventories and receivables
        resulting from the decision to close the Mexico distribution business.
    3.  A non-cash impairment charge to adjust the carrying value of deferred
        product technology, customer list, customer contract, internet
        investment and note receivable to estimated realizable future cash
        flows or fair market value.
    4.  Environmental remediation costs for facilities either no longer owned
        or closed in prior years.
    5.  Loss from the sale of European vinyl compounding business in the
        second quarter of 2003 and from the sale of Melos rubber granules
        business in the second quarter of 2004.
    6.  A charge for the cumulative effect of a change in accounting upon
        OxyVinyls adoption of SFAS No. 142, "Accounting for Asset Retirement
        Obligations."
    7.  Employee severance costs associated with a personnel reduction by
        OxyVinyls in the second quarter of 2003.
    8.  A non-cash impairment charge to adjust the net asset carrying value of
        discontinued operations to estimated net future proceeds.
    9.  U.S. tax expense related to foreign subsidiary dividends paid.
    10. Tax allowance to adjust net U.S. deferred income tax assets resulting
        from operating loss carry-forwards.



                                                                  Attachment 5
                Reconciliation of Non-GAAP Financial Measures
                                (In Millions)

    Below is a reconciliation of non-GAAP financial measures to the most
    directly comparable measures calculated and presented in accordance with
    GAAP.

                    4Q04         3Q04         4Q03      FY 2004     FY 2003

    Continuing operations:
    Operating income
     before special
     items          $20.1        $45.1        $11.1      $136.6       $46.7
    Special items
     in continuing
     operations,
     before tax      (3.9)        (7.3)       (19.0)      (17.0)      (50.7)
      Operating
       income
       (loss)       $16.2        $37.8       $ (7.9)     $119.6      $ (4.0)

    Discontinued operations:
    Operating
     income before
     special items   $3.5         $6.1         $1.2       $35.1        $7.9
    Special items
     in discontinued
     operations,
     before tax      (0.6)        (1.0)       (21.4)       (7.9)      (30.6)
      Operating
       income
       (loss)        $2.9         $5.1       $(20.2)      $27.2      $(22.7)

    Continuing operations:
    Income (loss)
     per share
     before impact
     of special
     items          $0.02        $0.17       $(0.06)      $0.41      $(0.21)
    Per share
     impact of
     special items,
     after tax      (0.14)       (0.04)       (0.27)      (0.21)      (0.84)
      Diluted income
       (loss) per
       share       $(0.12)       $0.13       $(0.33)      $0.20      $(1.05)

    Discontinued operations:
    Income per
     share before
     impact of
     special items  $0.01        $0.04        $0.01       $0.22       $0.05
    Per share
     impact of
     special items,
     after tax      (0.04)       (0.04)       (1.68)      (0.16)      (1.76)
      Diluted income
       (loss) per
       share       $(0.03)         $--       $(1.67)      $0.06      $(1.71)



                                  quarter ended                 year ended
                       Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31,
                          2004     2004     2004     2004      2004    2003

    Reconciliation to
     Condensed Consolidated
     Statement of Cash Flow

    Net cash provided
     (used by) by
     operating
     activities of
     continuing
     operations          $(36.2)   $28.3   $(53.2)   $9.5   $(51.6)  $(176.0)
    Net cash provided
     (used by) by
     investing
     activities of
     continuing
     operations            (7.9)    94.3     34.2    (8.7)   111.9     (12.9)
    Less decrease in
     sale of
     accounts
     receivable               -     19.1     50.9     0.7     70.7      89.2
    Plus net cash
     provided
     (used) by
     discontinued
     operations            (0.2)    (1.8)    18.9     7.7     24.6       4.2
    Interest rate
     swap fair
     value debt
     adjustment            (0.9)     1.2     (5.3)    2.3     (2.7)     (9.8)
    Guarantee of
     Sunbelt
     outstanding
     senior
     secured notes          6.1        -        -       -      6.1       6.1
    Other financing
     activity              (2.0)     0.3        -       -     (1.7)    (11.6)
    Effect of
     exchange rate
     changes on cash       (0.5)     0.4     (0.3)   (0.5)    (0.9)      3.0
    Decrease in
     borrowed debt
     less cash
     and cash
     equivalents         $(41.6)  $141.8    $45.2   $11.0   $156.4   $(107.8)

    Plus voluntary
     payments to
     employee pension
     plans                $65.0       $-       $-      $-    $65.0     $15.0
    Less proceeds
     from sale of
     assets (net of
     idle assets)             -     (5.7)   (18.6)      -    (24.3)     (0.3)
    Less guarantee
     of Sunbelt
     outstanding
     senior
     secured notes         (6.1)       -        -       -     (6.1)     (6.1)
    Less proceeds
     from sale of
     discontinued
     business,
     net of note
     receivable of
     $14.0 and
     selling costs            -   (101.5)       -       -   (101.5)        -
    Plus business
     acquired,
     net of cash
     received                 -        -        -     6.7      6.7         -
    Operating cash
     flow                 $17.3    $34.6    $26.6   $17.7    $96.2    $(99.2)



                                                                  Attachment 6
                   Business Segment Operations (Unaudited)
                                (In millions)

    Senior management uses operating income before the effect of "special
    items" to assess performance and allocate resources to business segments
    because senior management believes that this measure is useful in
    understanding current profitability levels and how current levels may
    serve as a base for future performance.  In addition, operating income
    before the effect of "special items" is a component of the PolyOne Annual
    Incentive Plan at the corporate level and is used in debt covenant
    computations.

    "Special items" include charges related to specific strategic initiatives
    such as the consolidation of operations, restructuring activities such as
    employee separation costs resulting from personnel reduction programs,
    plant closure and phase-out costs, asset impairments, environmental
    remediation costs for facilities no longer owned or closed in prior years,
    and gains and losses on the divestiture of joint ventures and equity
    investments.

                              Three Months

                     4Q04         3Q04         4Q03       FY04        FY03

    Business Segments:
    Sales:
      Performance
       Plastics
       Segment       402.7        426.9        373.1     1,697.5     1,556.1
      Distribution
       Segment       152.0        154.7        132.0       606.3       529.2
      Resin and
       Intermediates
       Segment           -            -            -           -           -
      Inter-segment
       Sales         (38.8)       (29.4)       (31.1)     (142.3)     (120.8)
                     515.9        552.2        474.0     2,161.5     1,964.5

    Operating
     income (loss)
      Performance
       Plastics
       Segment         3.5         28.4          6.3        82.1        34.5
      Distribution
       Segment         3.7          4.5          2.4        17.7         9.1
      Resin and
       Intermediates
       Segment        15.4         18.1          6.6        53.7        26.7
      Other Segment   (2.5)        (5.9)        (4.2)      (16.9)      (23.6)

      Special items,
       income
       (expense)      (3.9)        (7.3)       (19.0)      (17.0)      (50.7)
        Operating
         income
         (loss)       16.2         37.8         (7.9)      119.6        (4.0)

    Other data:
    Discontinued
     operations
      Sales:
        Elastomers and
         Performance
         Additives       -         30.3         81.9       220.1       348.1
        Specialty
         Resins and
         Engineered
         Films        56.1         55.1         53.0       231.9       223.3
                      56.1         85.4        134.9       452.0       571.4

      Operating
       income (loss)
        Elastomers
         and Performance
         Additives       -          2.9          3.6        20.6        24.8
        Specialty
         Resins and
         Engineered
         Films         3.5          3.2          1.9        14.5         4.8
        Depreciation
         and
         amortization    -            -         (4.3)          -       (21.7)

      Special items
       (expense)
       before tax     (0.6)        (1.0)       (21.4)       (7.9)      (30.6)
        Operating
         income
         (loss)        2.9          5.1        (20.2)       27.2       (22.7)



                                                                  Attachment 7
                      Sales and Shipment Volume Summary

                         4Q04 versus 3Q04  4Q04 versus 4Q03  2004 versus 2003

                                  Shipment          Shipment          Shipment
             4Q04 Sales, Sales $,   Lbs.,  Sales $,   Lbs.,  Sales $,   Lbs.,
              % of Total % Change % Change % Change % Change % Change % Change

    Performance Plastics
      Vinyl
       Compounds     31%       -7%     -8%      11%       6%       12%     9%
      Formulators     7        -8     -10        8       -1         2     -3
      Color and
       Additives
       Masterbatches 11         1      -3       19       17         7     20
      Engineered
       Material       5        -7      -5       -5      -24         3    -10
      International
       Compounds
       and Colors    19        -5     -14        0        3         8     12
        Total        73        -6      -8        8       -3         9      3

      Distribution   27        -2      -8       15        4        15      9
        Total       100%       -7%     -8%       9%      -2%       10%     5%

SOURCE PolyOne Corporation

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

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

http://www.prnewswire.com

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