Exhibit 99.1
[POLYONE LOGO]
N E W S R E L E A S E
FOR IMMEDIATE RELEASE
POLYONE TO SELL STAKE IN So.F.teR S.p.A. JOINT VENTURE
CLEVELAND - December 4, 2002 - PolyOne Corporation (NYSE: POL), a leading global
polymer services company, and So.F.teR S.p.A., a leading Italian compounder of
thermoplastic materials, including thermoplastic elastomers (TPEs), jointly
announced today that they have completed a transaction whereby PolyOne has sold
its majority interest in So.F.teR while licensing certain key technologies.
Under terms of their agreement, PolyOne has sold its 70 percent position to an
Italian company administered by Dr. Italo Carfagnini, who will continue to act
as managing director of So.F.teR. The purchase price was not disclosed.
The agreement further specifies that PolyOne will have an exclusive technology
and trademark license for production and sale of So.F.teR's Forprene(TM)
thermoplastic vulcanizate (TPV) technology in North America and Asia, and will
continue to represent So.F.teR products on a distribution basis to PolyOne
customers in Europe. Additional terms provide for a continuing relationship
between the parties for future technology development within this product area.
The relationship between PolyOne and So.F.teR dates to 1998 when M.A. Hanna
Company, which is now part of PolyOne, entered into a joint venture with Bifan
S.A., a holding company that controlled So.F.teR. PolyOne reported financial
results from the polymer compounder within its Performance Plastics segment.
"This is an amicable separation that has positive implications for both
parties," said V. Lance Mitchell, PolyOne's group vice president of Plastic
Compounds and Colors. "We at PolyOne have enjoyed this partnership, and now we
look forward to expanding our global presence in the market for Forprene(TM) TPV
and other innovative TPE technologies."
Said Carfagnini: "So.F.teR has benefited from the opportunity to work first with
M.A. Hanna and then with PolyOne, and now we are eager to move forward on a
different path, growing in new directions, including working with PolyOne in
fresh and exciting ways."
Both companies stressed that no customer disruptions will result from PolyOne's
divestiture. So.F.teR will continue to serve its current customers, and PolyOne
will continue working with customers in North America and Asia on the
development and marketing of Forprene(TM) TPV technology, as well as
distributing So.F.teR products to its European customers.
Headquartered in Forli, Italy, So.F.teR has three production facilities where it
compounds a variety of thermoplastic materials, including filled polyolefins,
cross-linked polyethylene, TPEs and its patented TPV product range. Its products
are used in the footwear, automotive, appliance, building materials, leisure and
appliance markets. Information on the company's products and services can be
found at www.softerspa.com.
PolyOne Corporation, with revenues approximating $2.6 billion, is an
international polymer services company with operations in thermoplastic
compounds, specialty resins, specialty polymer formulations, engineered films,
color and additive systems, elastomer compounding and thermoplastic resin
distribution. Headquartered in Cleveland, Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America, South America, Europe, Asia and Australia.
Information on the Company's products and services can be found at
www.polyone.com.
PolyOne Media & Investor Contact: Dennis Cocco
Chief Investor &
Communications Officer
216.589.4018
FORWARD-LOOKING STATEMENTS
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In this 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, including, for example,
statements about business outlook, assessment of market conditions, strategies,
future plans, future sales, prices for major products, inventory levels, capital
spending and tax rates. These forward-looking statements 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. Factors that could cause actual results to differ
materially include, but are not limited to: (1) an inability to achieve or
delays in achieving savings related to consolidation and restructuring programs;
(2) delays in achieving or inability to achieve the Company's strategic value
initiatives, including cost reduction and employee productivity goals, or
achieving less than the anticipated financial benefit from the initiatives; (3)
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; (4) changes in
world, regional or U.S. plastic, rubber and PVC consumption growth rates
affecting the Company's markets; (5) changes in global industry capacity or in
the rate at which anticipated changes in industry capacity come online in the
PVC, VCM, chlor-alkali or other industries in which the Company participates;
(6) fluctuations in raw material prices, quality and supply and energy prices
and supply, in particular fluctuations outside the normal range of industry
cycles; (7) production outages or material costs associated with scheduled or
unscheduled maintenance programs; (8) costs or difficulties and delays related
to the operation of joint venture entities; (9) lack of day-to-day operating
control, including procurement of raw material feedstocks, of other equity or
joint venture affiliates; (10) partial control over investment decisions and
dividend distribution policy of the OxyVinyls partnership and other minority
equity holdings of the Company; (11) an inability to launch new products and/or
services that strategically fit the Company's businesses; (12) the possibility
of goodwill impairment; (13) an inability to maintain any required licenses or
permits; and (14) an inability to comply with any environmental laws and
regulations.
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