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                                                                    EXHIBIT 99.1


EASTMAN CHEMICAL COMPANY TO BECOME 2 INDEPENDENT COMPANIES TO ENHANCE
SHAREHOLDER VALUE

Each Company with Specific Strategies For Faster Growth, Greater Business Focus
Kingsport, Tenn., February 5, 2001--Eastman Chemical Company (NYSE: EMN), a
leading manufacturer and marketer of chemicals, fibers and plastics, announced
today that its Board of Directors has authorized management to pursue a plan
that would result in the company becoming two independent public companies.

         The "Specialty Chemicals and Plastics" company will be a world leader
in specialty chemicals and plastics, with a strong focus on providing customer
solutions. It would include Eastman's presence in coatings, adhesives, inks,
specialty polymers and plastics, and intermediates products. Eastman's digital
business ventures, including ShipChem, Inc., as well as the investment in
Genencor International, would be part of this new entity.

         The "PET Plastics and Acetate Fibers" company will be a world market
and cost position leader in PET plastics and acetate fibers and will also
include Eastman's polyethylene business. Eastman's current PET business is the
largest, the most global, and the most vertically integrated in the world, with
the broadest product offering. The highly integrated fibers business is
characterized by stable cash flows and excellent customer relationships.

Earnest W. Deavenport, Jr., Eastman chairman and chief executive officer, said,
"We plan to create two great companies. We believe that separating these
businesses into two publicly traded companies will unlock long-term shareholder
value and provide investors with investment opportunities in highly focused
entities. Each company will set its own course for profitable growth, resource
allocation and strategic transactions.

"Eastman's management and board of directors have been considering strategic
alternatives to maximize shareholder value," said Deavenport. "We concluded that
this transaction is the best way to unlock that value."

Eastman intends to launch the two new companies through a spin-off in the form
of a tax-free stock dividend, to be effective by the end of the fourth quarter
2001. Immediately after the spin-off, Eastman shareholders will own shares in
both entities. Eastman has not yet finalized all aspects of the transaction,
which remains subject to board approval and other customary conditions. Eastman
noted that it expects the capital structures of the companies to be appropriate
for each company's financial profile and to maintain investment-grade ratings.
Eastman expects to record a one-time charge in connection with the spin-off.

MANAGEMENT

Deavenport will remain chairman and CEO of Eastman Chemical Company until the
spin-off is effective, and then retire. "We have a busy year ahead of us,"
Deavenport said. "We know we must deliver on our 2001 financial plan. We also
have to complete this transaction, which launches two successful companies with
strong leadership teams. I look forward to the challenge of leading the company
in this transition year."

J. Brian Ferguson, who has been president of Eastman's Polymers Group, will
become CEO of the specialty plastics and chemicals company. Allan R. Rothwell,
who has been president of Eastman's Chemicals Group, will become CEO of the PET
plastics and acetate fibers company. Eastman expects its current leadership and
board of directors will be divided between the two new companies. "We have
strong talent and leadership within the company, and we will strengthen our
capabilities from outside the company, where appropriate," Deavenport said.
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SPECIALTY CHEMICALS AND PLASTICS

The new specialty chemicals and plastics company will have more than $3 billion
in revenues and will include Eastman's coatings, adhesives, inks, specialty
polymers and plastics, performance chemicals and intermediates. These are all
attractive businesses with good growth prospects. The separation should
accelerate growth through increased management focus and the execution of
appropriate strategies.

High technology and services businesses will be important components of this new
company. The new company will retain Eastman's interest in ShipChem, Inc, a
chemical logistics provider, in Genencor International, a biotechnology company,
and in all digital ventures. Management believes that the separation will
increase market transparency and value recognition for these businesses.

PET PLASTICS AND ACETATE FIBERS

The PET Plastics and Acetate Fibers company will have revenues of more than $2
billion. It will build on Eastman's world-leading PET business, which had 2000
revenues of over $1 billion and a double-digit growth rate. Acetate fibers,
another world-leading business, should provide consistently strong cash flows
for the company. These global businesses have wide geographic scope and
best-in-class cost positions. The complementary cash flows generated by these
businesses, as well as the integrated polyethylene business, should allow the
company to remain financially strong throughout the business cycles. Eastman had
previously announced it was examining alternatives to diminish the impact of
some of these products by divestiture or restructuring; however, the company
believes that the new structure would better unlock the businesses' intrinsic
value by allowing them to selectively participate in market growth, attain
further cost leadership, and create a more tax-efficient transaction for
shareholders.

DIVIDEND

The Board of Directors for each respective company will determine its own
company's dividend policy after that, but it is expected that the initial
combined dividend of the two new companies would be equal to Eastman's current
dividend.

ADVISORS

J.P. Morgan is acting as financial advisor, and Jones, Day, Reavis & Pogue is
legal counsel to Eastman.

ABOUT EASTMAN CHEMICAL COMPANY

With headquarters in Kingsport, Eastman manufactures and markets chemicals,
fibers and plastics. The company has approximately 15,000 employees in 30
countries and had 2000 sales of $5.3 billion. For more information about the
company, visit the Web site on eastman.com.
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FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements concerning Eastman's
consideration of strategic transactions, including a possible spin-off
transaction. This transaction, and expectations relating to it, are based upon
certain underlying assumptions, including those mentioned with the
forward-looking statements, and are subject to risks and uncertainties inherent
in projecting future results. Actual results could differ materially from
expectations expressed in the forward-looking statements if one or more of the
underlying assumptions and expectations prove to be inaccurate or are
unrealized. Additional factors related to these and other future expectations
are and will be detailed in the company's filings with the Securities and
Exchange Commission, including the Form 10-Q for the third quarter 2000 and the
Form 10-K to be filed for 2000, and in the supplemental information for fourth
quarter 2000 and concerning the proposed spin-off transaction on the Eastman Web
site at www.eastman.com in the investor information section.

WEBCAST INFORMATION

Eastman will host a financial analyst meeting today at 2:30 p.m. (EST) to
discuss the transaction. A live internet broadcast of the meeting may be
accessed at www.dealinfo.com/eastman by clicking on an available audio link. The
meeting will also be archived on this Website for replay purposes for 30 days
after the live broadcast. Real Network's RealPlayer or Microsoft Windows Media
Player is required to access the Webcast. They can be downloaded from
www.real.com or www.microsoft.com/windows/mediaplayer.

The conference call can be accessed by dialing: (800) 252-8295, International
callers: (212) 748-2797. Due to the expected number of callers, please dial at
least 15 minutes before the conference is to begin. Ask to be connected to the
Eastman Chemical Company teleconference. A replay of the teleconference can also
be accessed for 30 days by dialing (800) 633-8284, for callers within the United
States, or (858) 812-6440, for all other callers. Please use reservation number
17754490.

CONTACT PERSONS

MEDIA: Martha Lawson, Corporate Communications, 423-229-6574,
mglawson@eastman.com

INVESTORS: Mary Ann Arico, Investor Relations, 423-229-8692, maarico@eastman.com