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PolyOne Reports Fourth-Quarter and Full-Year 2005 Results

February 7, 2006
     - Company sets record for net income in fourth quarter and full year

     - Resin and Intermediates segment delivers solid results, with turnaround
       after hurricane-affected third-quarter performance

     - Company reduces debt, generates strong cash flow from operations during
       fourth quarter and full year

CLEVELAND, Feb. 7 /PRNewswire-FirstCall/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, today reported sales of $606.8 million for the fourth
quarter ended December 31, 2005, an improvement of 11 percent over
fourth-quarter 2004 sales of $544.5 million. For the full year, sales were
$2,450.6 million compared with $2,267.7 million in 2004, an increase of 8
percent.

The Company recorded record net income of $21.7 million, or $0.24 per
share, in the fourth quarter of 2005 compared with a net loss of
$13.6 million, or a $0.15-per-share loss, in the fourth quarter of 2004. Net
income for the year was a record $46.9 million, or $0.51 per share, a
significant improvement over 2004 net income of $23.5 million, or $0.26 per
share.

"We entered the fourth quarter facing significant raw material cost
increases and potential supply disruptions as well as uncertainty surrounding
our vinyl business joint ventures," said William F. Patient, chairman and
chief executive officer. "Our results clearly demonstrate that this
organization stepped up to these challenges. We also managed our cash
resources effectively and reduced our debt during the quarter. These
achievements reflect our momentum as we enter 2006."

Included in the fourth-quarter net income were special items for
continuing and discontinued operations of $8.3 million, or $0.09 per share.
The most significant item was a non-cash tax benefit from the utilization of
domestic losses arising in prior years. Special items in the fourth quarter
of 2004 reduced earnings by $0.18 per share. A definition and a list of
special items appear in Attachment 5.

Net cash provided by operating activities was $61.6 million for 2005.
Operating cash flow(1) was a positive $23.4 million for the fourth quarter of
2005, due in large part to substantial improvements in working capital
efficiency and cash distributions from equity affiliates. PolyOne continued
to improve its working capital control through reductions in its accounts
receivable days sales outstanding (DSO) and days sales in inventory (DSI)
metrics.

Segment Highlights (see Attachment 7)

Performance Plastics segment: As previously announced, the Company
determined that the Specialty Resins divestment process was unlikely to result
in a sale of the business at acceptable terms and, therefore, Specialty Resins
is no longer reported as a business being held for sale within discontinued
operations. The unit is now being reported as a continuing operation within
the Performance Plastics segment results. All current and historical results
in this release reflect this change.

Fourth-quarter sales of $473.0 million increased $41.8 million, or 10
percent, over fourth-quarter 2004 sales, but decreased $9.5 million, or 2
percent, from the third quarter of 2005. Shipment volume in the fourth
quarter was flat with fourth-quarter 2004 volume and down seasonally 5 percent
from the third quarter. Operating income of $3.6 million was $1.4 million
higher than in the fourth quarter of 2004 and $12.8 million lower than in the
third quarter, principally as a result of the lower shipment volume. Nearly
every product group within the segment increased selling prices during the
fourth quarter and, as a result, product spreads (selling price less raw
material costs) entering 2006 are stronger than at the start of 2005. The
Vinyl Compounds and Engineered Materials product groups made the most
significant progress in the face of escalating raw material costs.

For the full year, sales reached $1.93 billion, an increase of
$121.7 million, or 7 percent, compared with 2004. Performance Plastics sales
represented 73 percent of the entire Company's revenues in 2005. Operating
income for 2005 was $61.1 million, a decline of $22.5 million compared with
2004. Special items lowered operating income by $6.8 million in 2005 and by
$17.0 million in 2004.

Distribution segment: Sales remained stronger than seasonally typical
through the fourth quarter. Sales of $172.7 million were $20.7 million, or 14
percent, higher than in the fourth quarter of 2004. Moreover, sales in the
2005 fourth quarter increased $3.9 million, or 2 percent, compared with third-
quarter 2005 sales. Higher realized selling prices resulted in stronger
product spreads that contributed to the $6.0 million operating income
performance. Fourth-quarter 2005 operating income was up $2.3 million
compared with the fourth quarter of 2004 and $1.9 million compared with the
third quarter.

Fourth-quarter 2005 shipments were flat compared with the fourth quarter
of 2004 and declined seasonally 5 percent compared with the third quarter.

For the full year, sales of $679.2 million increased $72.9 million, or 12
percent, compared with 2004. Higher selling prices drove this improvement.
In addition, the segment realized record operating income of $19.5 million, an
increase of $1.7 million, or 10 percent, compared with 2004.

Resin and Intermediates segment: Segment earnings recovered markedly in
fourth-quarter 2005 compared with the third quarter. Oxy Vinyls, LP product
spreads recovered partially as a result of improved polyvinyl chloride (PVC)
resin market pricing, although energy and ethylene cost increases were not
fully offset. SunBelt Chlor-Alkali operations were fully restored early in
the fourth quarter, after having been adversely affected by Hurricanes Katrina
and Rita.

Operating income of $28.3 million in the fourth quarter of 2005 increased
$12.9 million, or 84 percent, versus the fourth quarter of 2004, driven
principally by higher caustic soda prices. Fourth-quarter 2005 operating
income increased $17.9 million, or 172 percent, compared with the third
quarter of 2005, excluding the $22.9 million non-cash pretax charge in the
third quarter related to the impairment of a previously idled chlor-alkali
facility at OxyVinyls.

Full-year 2005 operating income before the special item associated with an
idled facility improved $37.3 million compared with 2004. The main factor in
this improvement was record SunBelt profitability, due largely to higher
selling prices for chlorine and caustic soda.

Discontinued Operations

PolyOne announced on September 27, 2005, that it had signed a letter of
intent to sell its Engineered Films business unit to an investor group
comprising members of the unit's management team, along with an investor group
formed by Matrix Capital Markets. The transaction is expected to close in the
first quarter of 2006, subject to a number of closing conditions.

First-quarter 2006 Business Outlook

The Company projects that shipment volume for the Performance Plastics
segment should improve 6 percent to 8 percent compared with the fourth
quarter, to a level 1 percent to 2 percent higher than in first-quarter 2005.
The sequential improvement is largely seasonal, but the Company does
anticipate stronger underlying demand than it experienced a year ago.
Compared with the first quarter of 2005, PolyOne projects that product pricing
on average should be up 5 percent to 6 percent. Product spreads also should
improve compared with a year ago. The combination of these factors should
result in stronger segment earnings compared with both the first and fourth
quarters of 2005.

The Company projects that Distribution shipment volume should increase 2
percent to 4 percent during first-quarter 2006 compared with the first quarter
of 2005, on 8 percent to 10 percent higher sales. Paced by higher shipments
and continuing strong product spreads, operating income is expected to improve
compared with first-quarter 2005.

In the Resin and Intermediates segment, PolyOne anticipates that SunBelt
and OxyVinyls should deliver strong results, with earnings remaining in line
with both the first and fourth quarters of 2005. First-quarter 2006 industry
caustic soda selling prices are projected to increase moderately compared with
fourth-quarter 2005 levels, with chlorine projected to remain flat. Industry
participants have announced PVC resin price increases in the first quarter to
maintain product spreads. Industry projections for first-quarter ethylene and
natural gas prices approximate average fourth-quarter levels.

The Company expects full-year 2006 cash generation to exceed 2005 levels
before any anticipated proceeds from the pending sale of the Engineered Films
business. The Company, however, further anticipates that a working capital
build in the first quarter due to strong sequential revenue growth should
result in negative cash generation, despite projected improvements in accounts
receivable and inventory turnover metrics.

    PolyOne expects the following factors to affect 2006 cash flow:
     - Capital expenditures should total $45 million to $50 million compared
       with 2005 spending of $33 million.  This increase is due largely to
       higher spending in support of growth initiatives;
     - Depreciation and amortization should be approximately $55 million
       (including Specialty Resins in continuing operations);
     - Cash distributions from equity affiliates should approximate 2005
       levels, provided there is no material change in operating conditions;
     - Cash proceeds should be realized from the pending divestment of the
       Engineered Films business;
     - Restructuring expenditures should be minimal, similar to 2005;
     - Cash taxes (foreign) should be similar to 2005, at $10 million to
       $12 million;
     - No contributions to the qualified U.S. pension plan will be required in
       2006;
     - Less than $1 million remains outstanding on long-term debt maturing in
       2006;
     - The Company has targeted a further reduction in its internal working
       capital as a percentage of sales metric of approximately 0.5 percentage
       points; and
     - As a result of debt reduction, interest expense should be approximately
       $4 million to $5 million lower in 2006 compared with 2005.

    Fourth-quarter 2005 Earnings Conference Call and Webcast

PolyOne will host a conference call at 9:00 a.m. Eastern time on
Wednesday, February 8, 2006. 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 9932181. The call will
be broadcast live and then via replay for two weeks on the Company's Web site
at www.polyone.com.

About PolyOne

PolyOne Corporation, with 2005 annual revenues of approximately
$2.5 billion, is a leading global compounding and North American distribution
company with 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 www.polyone.com.

Use of Non-GAAP Financial Measures

This earnings 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 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.

PolyOne's chief operating decision makers use these financial measures to
monitor and evaluate the ongoing performance of the Company and each business
segment, and to decide on allocation of resources. In addition, operating
income before special items and operating cash flow are components of various
PolyOne annual incentive plans.

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

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, including, without limitation, meeting cash flow goals,
receiving cash distributions from equity affiliates and achieving working
capital targets; results of current and anticipated market conditions and
market strategies; sales efforts; expenses; the outcome of contingencies such
as legal proceedings; financial results; and the anticipated sale of the
Engineered Films unit. 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, including those related to the effects of
       Hurricanes Katrina and Rita;
     - 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 cost
       reductions 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 or for any other reason;
     - 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 Colors and
       Additives Masterbatch and the Engineered Materials product platforms to
       profitability;
     - an inability to raise prices or sustain price increases for products;
     - an inability to achieve anticipated earnings performance due to the
       divestment of a non-core business;
     - an inability to complete the sale of discontinued businesses due to
       problems or delays associated with legal proceedings, regulatory
       approvals, buyers receiving financing for the transaction, satisfactory
       completion of due diligence, finalization of definitive agreements or
       any other reasons;
     - an ability to maintain appropriate relations with unions and employees
       in certain locations in order to avoid disruptions of business; and
     - other factors affecting our business beyond our control, including,
       without limitation, changes in the general economy, changes in interest
       rates and changes in the rate of inflation.

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 list to be a complete set of all potential risks or uncertainties.
(Ref. #91305)

    (1) A discussion occurs at the end of this release on the use of non-GAAP
        financial measures.



                                                                  Attachment 1
     Supplemental Information

      Quarterly and Full-Year Summary of Consolidated Operating Results,
                   Showing Discontinued Operations' Impact
          (In millions of dollars, except per share data, unaudited)

    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) include only the results of continuing operations.



                                                                Full Year
                         4Q05        4Q04        3Q05        2005       2004
     Operating results:
     Sales - continuing
      operations       $ 606.8      $544.5      $611.6    $2,450.6   $2,267.7

     Operating income-
      continuing
      operations         $38.0       $17.7        $4.4      $140.3     $128.4

     Net income (loss) -
      total Company      $21.7      $(13.6)     $(19.5)      $46.9      $23.5
       Income (loss)
        before
        discontinued
        operations
        after tax         20.4        (8.8)      (16.2)       62.2       27.6
       Income (loss) from
        discontinued
        operations net of
        income taxes       1.3        (4.8)       (3.3)      (15.3)      (4.1)

     Earnings (loss) per
      share - diluted:
     Net income (loss)-
      total Company      $0.24      $(0.15)     $(0.22)      $0.51      $0.26
       Income (loss)
        before
        discontinued
        operations        0.22       (0.10)      (0.18)       0.68       0.30
       Income (loss) from
        discontinued
        operations        0.02       (0.05)      (0.04)      (0.17)     (0.04)
     Total per share
      impact of special
      items(1) after
      tax:                0.09       (0.18)      (0.31)      (0.17)     (0.37)
       Before discontinued
        operations        0.09       (0.13)      (0.27)          -      (0.17)
       Discontinued
        operations           -       (0.05)      (0.04)      (0.17)     (0.20)

    Other data:
    Sales - discontinued
     operations(2)       $27.8       $27.6       $30.7      $119.6    $ 345.8
    Depreciation and
     amortization         12.4        12.3        13.4        50.7       50.9

     (1) A definition and a list of special items appear in Attachment 5.
     (2) Full-year 2004 discontinued sales include revenues from the
         Elastomers and Performance Additives business that was sold in August
         2004.



                                                                  Attachment 2

                     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
                               2005         2004         2005         2004

     Sales                   $606.8      $ 544.5     $2,450.6     $2,267.7
     Operating costs and
      expenses:
        Cost of sales         543.7        487.2      2,153.5      1,934.2
        Selling and
         administrative        39.9         42.0        178.2        201.9
        Depreciation and
         amortization          12.4         12.3         50.7         50.9
     Employee separation and
      plant phaseout            3.0          0.1          5.5         (1.4)
     Asset impairments          0.2          3.8          0.4          3.8
     Environmental remediation
      at inactive sites        (2.0)           -          0.9          8.7

     Loss on sale of assets       -            -            -          5.9

     Income from equity
      affiliates and minority
      interest                (28.4)       (18.6)       (78.9)       (64.7)
     Operating income (loss)   38.0         17.7        140.3        128.4
     Interest expense         (16.9)       (17.3)       (68.1)       (72.1)
     Interest income            0.5          0.5          1.9          1.5
     Other expense, net        (1.0)        (3.8)        (5.3)       (16.5)
     Income (loss) before
      income taxes and
      discontinued operations  20.6         (2.9)        68.8         41.3
     Income tax expense        (0.2)        (5.9)        (6.6)       (13.7)
     Income (loss) before
      discontinued operations  20.4         (8.8)        62.2         27.6
     Discontinued operations:
       Income (loss) from
       operations, net of
       income taxes             1.3         (4.8)       (15.3)        (4.1)
     Net income (loss)        $21.7       $(13.6)       $46.9        $23.5

     Earnings (loss) per
      common share:
       Basic and diluted
        earnings (loss):
          Before discontinued
           operations         $0.22       $(0.10)       $0.68        $0.30
          Discontinued
           operations          0.02        (0.05)       (0.17)       (0.04)
          Basic and diluted
           earnings (loss)
           per share          $0.24       $(0.15)       $0.51        $0.26

     Weighted average shares
      used to compute earnings
      per share:
        Basic                  91.8         91.6         91.9         91.6
        Diluted                91.8         91.6         92.0         91.8

     Dividends paid per share
      of common stock            $-           $-           $-           $-



                                                                 Attachment 3
                     PolyOne Corporation and Subsidiaries
              Condensed Consolidated Balance Sheets (Unaudited)
                     (In millions, except per share data)

                                                   December 31,   December 31,
                                                       2005           2004
    Assets
    Current assets:
     Cash and cash equivalents                         $ 32.8          $38.6
     Accounts receivable, net                           320.5          312.9
     Inventories                                        191.8          205.3
     Deferred income tax assets                          20.1           20.1
     Other current assets                                27.4           19.5
     Discontinued operations                             20.9           23.3
      Total current assets                              613.5          619.7
     Property, net                                      436.0          478.9
    Investment in equity affiliates                     273.9          263.3
    Goodwill, net                                       315.3          321.0
    Other intangible assets, net                         10.6           10.1
    Other non-current assets                             60.0           59.7
    Discontinued operations                               6.7           22.1
      Total assets                                   $1,716.0       $1,774.8

    Liabilities and Shareholders' Equity
    Current liabilities:
     Short-term bank debt                                $7.1           $2.3
     Accounts payable                                   232.6          225.1
     Accrued expenses                                    80.0          103.5
     Current portion of long-term debt                    0.7           49.3
     Discontinued operations                             11.2           13.8
      Total current liabilities                         331.6          394.0
    Long-term debt                                      638.7          640.5
    Post-retirement benefits other than pensions        105.5          113.9
    Other non-current liabilities, including pensions   219.1          239.2
    Minority interest in consolidated subsidiaries        5.4            6.8
      Total liabilities                              $1,300.3      $ 1,394.4
    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, 2005 and 2004                          1.2            1.2
     Other shareholders' equity                         414.5          379.2
      Total shareholders' equity                        415.7          380.4
      Total liabilities and shareholders' equity     $1,716.0       $1,774.8



                                                                 Attachment 4
                     PolyOne Corporation and Subsidiaries
         Condensed Consolidated Statements of Cash Flows (Unaudited)
                                (In millions)

                                                           Year Ended
                                                           December 31,
                                                       2005          2004
    Operating Activities
    Net income                                        $46.9         $23.5
     Income from discontinued operations               15.3           4.1
    Income from continuing operations                  62.2          27.6
    Adjustments to reconcile income from
     continuing operations to net cash
     used by operating activities of
     continuing operations:
      Employee separation and plant phaseout
       charges                                          5.5          (1.4)
      Cash payments on employee separation and
       plant phaseout                                  (3.3)        (22.5)
      Charges on environmental remediation at
       inactive sites                                   0.9           8.7
      Cash payments for environmental
       remediation at inactive sites                   (8.7)         (1.6)
      Depreciation and amortization                    50.7          50.9
      Loss on sale of assets                            --            5.9
      Companies carried at equity and
       minority interest:
        Income from equity affiliates and
         minority interest                            (78.9)        (64.7)
        Dividends and distributions received           67.4          51.5
      Deferred income taxes                             2.8           0.6
      Change in assets and liabilities:
        Accounts receivable                           (23.6)        (21.7)
        FIFO inventories                                9.3           1.5
        Accounts payable                               13.2          22.2
        Increase (decrease) in sale of
         accounts receivable                            7.9         (70.7)
        Accrued expenses and other                    (43.8)        (38.8)
    Net cash provided (used) by operating
     activities of continuing operations               61.6         (52.5)

    Investing Activities
     Capital expenditures                             (32.1)        (23.9)
     Return of cash from equity affiliates               --           8.3
     Proceeds from sale of discontinued business,
      net                                                --         101.5
     Business acquired, net of cash received           (2.7)         (6.7)
     Proceeds from sale of assets                      12.3          32.2
    Net cash provided (used) by investing
     activities of continuing operations              (22.5)        111.4

    Financing Activities
     Change in short-term debt                          4.6          24.1
     Change in long-term debt                         (48.8)       (117.8)
     Debt issuance costs                                 --          (0.4)
     Termination of interest rate swaps                  --          (0.3)
     Proceeds from exercise of stock options            0.5           0.3
    Net cash used by financing activities of
     continuing operations                            (43.7)        (94.1)

    Net cash provided by discontinued operations        0.4          26.0

    Effect of exchange rate changes on cash            (1.6)         (0.9)

    Decrease in cash and cash equivalents              (5.8)        (10.1)
    Cash and cash equivalents at beginning of
     period                                            38.6          48.7
    Cash and cash equivalents at end of period        $32.8         $38.6



                                                                 Attachment 5

                     Summary of Special Items (Unaudited)
                     (In millions, except per share data)

"Special items" include charges related to specific strategic initiatives
such as the consolidation of operations; restructuring activities, including
employee separation costs resulting from personnel reduction programs, plant
closure and phaseout costs; executive separation agreements; 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
losses; and deferred tax valuation allowances on domestic operating income.

                                      Year Ended  Year Ended
                                        Dec. 31,    Dec. 31,
    Special items                         2005        2004    4Q05       4Q04

    Continuing operations
    Employee separation and plant
     phaseout costs (1)                   (5.5)        1.4    (3.0)      (0.1)
    Asset impairments (2)                 (0.4)       (3.8)   (0.2)      (3.8)
    Environmental remediation at
     inactive sites (3)                   (0.9)       (8.7)    2.0         -
    Loss on the sale of Melos
     Rubber Granules business               -         (5.9)      -         -
    Impairment of previously idled
     chlor-alkali facility at            (22.9)          -       -         -
     Oxy Vinyls, LP
      Impact on pretax income            (29.7)      (17.0)   (1.2)      (3.9)
    Income tax benefit on above
     items                                10.4         8.6     0.1        1.5
    Tax allowance (5)                     19.2        (7.7)    9.0       (9.9)

      Impact on net income (loss)
       from continuing operations         (0.1)      (16.1)    7.9      (12.3)
      Per diluted share impact               -       (0.17)   0.09      (0.13)

    Discontinued operations
    Employee separation and plant
     phaseout costs (1)                   (1.2)       (7.9)    0.1       (0.6)

      Impact on operating income          (1.2)       (7.9)    0.1       (0.6)
    Net asset impairment and loss
     on disposition of discontinued
     operations (4)                      (15.1)      (21.3)   (0.3)      (6.0)

      Impact on pretax income            (16.3)      (29.2)   (0.2)      (6.6)
    Income tax benefit on above
     items                                 6.4        11.4     0.1        2.6
    Tax allowance (5)                     (6.0)        0.1     0.5       (0.1)

      Impact on net income (loss)
       from discontinued operations      (15.9)      (17.7)    0.4       (4.1)
      Per diluted share impact           (0.17)      (0.20)      -      (0.05)

    Total
        Impact on net income
         (loss)                          (16.0)      (33.8)    8.3      (16.4)
        Per share impact                 (0.17)      (0.37)   0.09      (0.18)


    Explanations:
    1. Severance, employee outplacement, external outplacement consulting,
       lease termination, facility closing costs and the write-down of the
       carrying value of plant and equipment resulting from restructuring
       initiatives and executive separation agreements.
    2. Non-cash impairment charges to adjust the carrying value of investments
       to fair market value.
    3. Environmental remediation costs for facilities either no longer owned
       or closed in prior years.
    4. Non-cash impairment charges to adjust the net asset carrying value of
       discontinued operations to estimated net future proceeds.
    5. Tax allowance to adjust net U.S. deferred income tax assets resulting
       from operating loss carry-forwards.




                                                                 Attachment 6

          Reconciliation of Non-GAAP Financial Measures (Unaudited)\
                                (In millions)

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

                                                               Full Year
                               4Q05     4Q04      3Q05       2005     2004
    Continuing operations:
    Operating income before
     special items            $39.2     $21.6     $32.3    $170.0    $145.4
    Special items in
     continuing operations,
     before tax                (1.2)     (3.9)    (27.9)    (29.7)    (17.0)
      Operating income        $38.0     $17.7      $4.4    $140.3    $128.4

    Discontinued operations:
    Operating income before
    special items              $1.4      $1.8      $1.2      $1.0     $26.2
    Special items in
     discontinued operations,
     before tax                 0.1      (0.6)     (0.6)     (1.2)     (7.9)
      Operating income (loss)  $1.5      $1.2      $0.6     $(0.2)    $18.3

    Continuing operations:
    Income per share before
     impact of special items  $0.13     $0.03     $0.09     $0.68     $0.47
    Per share impact of
     special items,
     after tax                 0.09     (0.13)    (0.27)        -    (0.17)
      Diluted income (loss)
       per share              $0.22    $(0.10)   $(0.18)    $0.68     $0.30

    Discontinued operations:
    Income per share before
     impact of special items  $0.02        $-        $-        $-     $0.16
    Per share impact of
     special items,
     after tax                   -      (0.05)    (0.04)    (0.17)    (0.20)
      Diluted income (loss)
       per share              $0.02    $(0.05)   $(0.04)   $(0.17)   $(0.04)



                                          Three Months Ended   Year Ended
                                           Dec. 31, Dec. 31, Dec. 31, Dec. 31,
                                             2005     2004     2005    2004
    Reconciliation to Condensed
     Consolidated Statement of Cash Flows
    Net cash provided (used) by operating
     activities of continuing operations     $13.9  $(36.2)   $61.6  $(52.5)
    Net cash provided (used) by investing
     activities of continuing operations      (4.5)   (9.3)   (22.5)  111.4
    Less (increase) decrease in sale of
     accounts receivable                      12.2       -     (7.9)   70.7
    Plus net cash provided (used) by
     discontinued operations                   5.2     1.2      0.3    26.0
    Interest rate swap fair value debt
     adjustment                               (2.3)   (0.9)    (2.7)   (2.7)
    Guarantee of SunBelt outstanding senior
     secured notes                             6.2     6.1      6.2     6.1
    Other financing activity                  (0.2)   (2.0)     1.9    (1.7)
    Effect of exchange rate changes on cash   (0.9)   (0.5)    (1.6)   (0.9)
    Increase (Decrease) in borrowed debt less
     cash and cash equivalents               $29.6  $(41.6)   $35.3  $156.4

    Plus voluntary payments to employee
     pension plans                             $ -   $65.0     $ -    $65.0

    Less proceeds from sale of assets            -       -       -    (24.3)
    Less guarantee of SunBelt outstanding
     senior secured notes                     (6.2)   (6.1)    (6.2)   (6.1)
    Less proceeds from sale of business, net
     of note receivable                          -       -        -  (101.5)
    Plus business acquired, net of cash
     received                                    -       -      2.7     6.7
    Operating cash flow                      $23.4   $17.3    $31.8   $96.2



                                                                 Attachment 7

                   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.


                                                           Full Year
                         4Q05      4Q04      3Q05       2005        2004
    Business Segments:
    Sales:
     Performance
      Plastics
      Segment           $473.0    $431.2    $482.5    $1,925.4    $1,803.7
     Distribution
      Segment            172.7     152.0     168.8       679.2       606.3
     Intersegment
      eliminations       (38.9)    (38.8)    (39.7)     (154.0)     (142.3)
                        $606.8    $544.4    $611.6    $2,450.6    $2,267.7

    Operating income (loss):
     Performance
      Plastics
      Segment             $3.6      $2.2     $16.4       $61.1       $83.6
     Distribution
      Segment              6.0       3.7       4.1        19.5        17.8
     Resin &
      Intermediates
      Segment             28.3      15.4     (12.5)       65.1        53.7
     Other
      Segment              0.1      (3.6)     (3.6)       (5.4)      (26.7)

    Operating
     income              $38.0     $17.7      $4.4      $140.3      $128.4

    Other data:
    Discontinued operations
     Sales:
      Elastomers and
       Performance
       Additives           $-         $-        $-          $-      $220.1
      Engineered
       Films             27.8       27.6      30.7       119.6       125.7
                        $27.8      $27.6     $30.7      $119.6      $345.8

     Operating income:
      Elastomers and
       Performance
       Additives           $-         $-        $-          $-       $20.5
      Engineered
       Films              1.4        1.8       1.2         1.0         5.7

    Special items,
     expense before
     tax                  0.1       (0.6)     (0.6)       (1.2)       (7.9)
      Operating
       income            $1.5       $1.2      $0.6       $(0.2)      $18.3



                                                                Attachment 8
                      Sales and Shipment Volume Summary

                                   4Q05             4Q05            2005
                                versus 3Q05     versus 4Q04     versus 2004
                         4Q05          Shipment        Shipment       Shipment
                        Sales,  Sales $, Lbs., Sales $,  Lbs., Sales $,  Lbs.,
                         % of     %       %       %       %       %       %
                         Total  Change  Change  Change  Change  Change  Change

    Performance Plastics
     Vinyl Compounds      31%     0.5%    (7)%    19%     1%     8%     (4)%
     Polymer Coatings      6      (10)   (11)     (2)    (9)     2      (6)
     NA Color and
      Additives
      Masterbatch          9       (2)     -       4      2      8       3
     NA Engineered
      Materials            5       11      6       7      4      -      (7)
     Specialty Resins      5       (2)    (3)     12    (10)    29      (3)
     International
      Colors and
      Engineered
      Materials           17       (6)    (5)      2      5      5      (2)
       Total              73       (2)    (5)     10      -      7      (5)

    Distribution          27        2     (5)     14      -     12      (2)
       Total             100%      (1)%    2%     11%     -      8%     (4)%
SOURCE  PolyOne Corporation
    -0-                             02/07/2006
    /CONTACT:  Dennis Cocco, Vice President, Investor Relations &
Communications of PolyOne Corporation, +1-440-930-1538/
    /Web site:  http://www.polyone.com/
    (POL)

CO:  PolyOne Corporation
ST:  Ohio
IN:  CHM CPR
SU:  ERN ERP CCA

JE-JK
-- CLTU051 --
3684 02/07/2006 17:00 EST http://www.prnewswire.com
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