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PolyOne Updates 2005 Third-Quarter Outlook

September 13, 2005

CLEVELAND, Sept. 13 /PRNewswire-FirstCall/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, today updated its outlook for the third quarter that
will end September 30, 2005. This action is part of PolyOne's efforts to
inform investors at mid-quarter of any significant changes to major business
drivers.

Since PolyOne reported second-quarter results on July 28, 2005, three
factors are adversely affecting the outlook for the third quarter:

  • In North America, the anticipated increase in demand over the second
    quarter has not occurred.
  • Prior to Hurricane Katrina, natural gas and ethylene costs rose to
    higher-than-anticipated levels, driving higher raw material costs and
    placing additional pressure on product spreads (product selling prices
    over raw material costs).
  • The hurricane's immediate and longer-term negative effects from
    production and supply disruptions and from higher energy and derivative
    raw material costs are being assessed, but the full magnitude remains
    unknown.

Entering the quarter, PolyOne anticipated fairly stable raw material
pricing and a counter-seasonal pickup in demand. Consistent with industry
consensus, PolyOne's view was that the unusual decline in North American
second-quarter demand was due largely to broad customer inventory reductions,
and that demand would improve in the third quarter. This demand momentum has
not yet materialized, and the Company now expects flat shipment volumes
compared with the second quarter, rather than the 1 percent to 3 percent
increase in the earlier outlook.

European demand is tracking earlier expectations, and the Company
continues to experience strong shipment growth in Asia.

The immediate impact of Hurricane Katrina is reflected largely in lowered
Resin and Intermediates (R&I) segment earnings expectations. The SunBelt
Chlor-Alkali plant in Macintosh, Alabama, lost a week of production, and
operations going forward are dependent upon railcar availability. Further,
Oxy Vinyls, LP in particular faces hurricane-driven natural gas and ethylene
cost increases, which are resulting in significantly higher operating costs
and pressure on product spreads. PolyOne expects logistical cost increases,
including fuel surcharges and rail system dislocations, to negatively affect
all North American operations for the near future.

As a result of these factors, PolyOne expects that R&I segment operating
income should decrease significantly more from the second-quarter level than
previously thought. Hurricane Katrina's impact on the industry is dynamic and
continues to evolve.

The July 28, 2005, outlook for PolyOne's discontinued operations,
Specialty Resins and Engineered Films, is unchanged.

In the third quarter, the Company expects to generate positive operating
cash flow, although the level remains subject to the unknown variables
described above. Additionally, the recently amended credit facilities (as
described in the second-quarter 2005 Form 10-Q) assure adequate liquidity.

PolyOne Third-quarter 2005 Earnings Release and Conference Call

PolyOne intends to release its third-quarter 2005 earnings after the close
of business on Thursday, October 27, 2005, and host a conference call at 9:00
a.m. Eastern time on Friday, October 28, 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 9932167.
The call will be broadcast live and then via replay for two weeks on the
Company's Web site at http://www.polyone.com.

About PolyOne

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

PolyOne Investor & Media Contact: Dennis Cocco

Vice President, Investor Relations

& Communications

440.930.1538



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; 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, including those related to the effects of Hurricane
    Katrina;
  • 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 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;
  • 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
  • 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)

SOURCE PolyOne Corporation

09/13/2005

CONTACT: Investor & Media, Dennis Cocco, Vice President, Investor

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

Web site: http://www.polyone.com

(POL)

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