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PolyOne to Sell Engineered Films Unit

September 27, 2005

CLEVELAND, Sept 27, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, has 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.

Matrix Capital is an investment banking firm that has been retained to
advise management and arrange financing for the transaction. The new entity,
yet to be named, will consist of the operating assets and liabilities of the
Engineered Films unit.

Terms of the agreement were not disclosed. PolyOne will retain a minority
ownership interest in the new entity.

The sale is subject to the approval of the PolyOne Board of Directors,
completion of the required transaction financing, finalization of definitive
agreements and completion of due diligence. The transaction is expected to
close in the fourth quarter of 2005, subject to the foregoing conditions and
other customary closing conditions.

The Engineered Films unit is a leading provider of customized, high-
performance plastic films for use in diverse applications, including
automobile and truck interiors, flooring, wall covering and pool liners.
Headquartered in Winchester, Virginia, the unit operates manufacturing
facilities there and in Lebanon, Pennsylvania. The Engineered Films unit's
revenues in 2004 were approximately $126 million.

PolyOne announced in late 2003 that it would confine its strategic
emphasis to its Plastics Compounding, Color and Additives Masterbatch, and
Distribution businesses. These businesses have leading market positions, and
most are global in scope.

In line with this strategy, PolyOne also announced that it would divest
its Elastomers and Performance Additives, Engineered Films and Specialty
Resins businesses. As a result, the Company began reporting these business
units as discontinued operations in the fourth quarter of 2003. PolyOne sold
its Elastomers business in August 2004.

About PolyOne

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

Forward-looking Statements

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

  • 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;
  • the possibility of further goodwill impairment;
  • a delay or inability to achieve targeted debt level reductions through
    divestitures and/or other means;
  • 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; and
  • an inability to complete the sale of discontinued businesses, including
    the Engineered Films unit, 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.

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. #92705)

SOURCE PolyOne Corporation

Dennis Cocco, Vice President, Investor Relations of PolyOne Corporation,

+1-440-930-1538

http://www.prnewswire.com

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