Exhibit 99
[Letterhead of Solutia Inc.]
FOR IMMEDIATE RELEASE
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Contacts: Media - Glenn Ruskin - 703-282-7429
Financial - Marleen Judge - 314-674-7777
SOLUTIA INC.: FEDERAL JUDGE APPROVES CONSENT DECREE
APPROVAL PROVIDES FOR ACCELERATION OF PCB CLEANUP IN ANNISTON, ALA.;
BUILDS UPON EXTENSIVE PAST REMEDIATION WORK
IMPACT TO SECOND QUARTER AND YEAR-TO-DATE FINANCIALS NOTED
ST. LOUIS, Aug. 4, 2003 --- The Honorable U.W. Clemon, Senior
Judge, United States District Court for the Northern District of Alabama,
today approved a consent decree among Solutia Inc. (NYSE:SOI), Pharmacia
Corporation, the U.S. Environmental Protection Agency (EPA) and the U.S.
Department of Justice (DOJ).
"We applaud Judge Clemon's diligent efforts to bring peace of mind
to the Anniston community. The consent decree paves the way for a safe and
effective cleanup of the area," said John Hunter, chairman and chief
executive officer of Solutia. "Most importantly, the approved consent decree
provides for an expedited residential cleanup, which has been a top priority
for Solutia and the community."
Under the consent decree, Solutia is required to submit a work plan
for the cleanup of identified residential properties to achieve EPA's safe
environment clean up standard. EPA will review the work plan, and then
provide for a public comment period to gather input from the community. In
addition, the consent decree outlines work that will lead to a comprehensive
approach to the cleanup of waterways and commercial properties.
The consent decree provides the framework for finishing the
remediation work that Solutia has already undertaken. To date, Solutia has
spent over $54 million on environmental efforts in and around Anniston. The
company has investigated more than 8,000 acres of land and many miles of
waterways to determine the work that needs to be done. In addition, more
than 5,000 samples of soil, water, sediment and fish have been gathered, and
Solutia has cleaned about 300 acres of land and more than a mile of drainage
ditches to safe standards.
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In addition, the consent decree provides benefits to the Anniston
community beyond the cleanup of affected properties. Solutia will spend $3.2
million over 12 years to fund education grants for programs that benefit
West Anniston children. EPA will perform comprehensive health and
environmental risk assessments, and Solutia will provide grants to community
groups for the retention of independent technical experts to interpret and
comment upon work associated with PCB remediation. Finally, all such
benefits will be realized with the guidance of a Community Advisory Group
comprised of Anniston community members. "Solutia is committed to doing what
is right for the community and its residents," said Hunter. "The approval of
this consent decree is an important step in moving us closer to that goal."
The approval of the consent decree impacts Solutia's second quarter
and full year financial results. Pursuant to the decree and consistent with
the accounting requirements for this type of subsequent event, Solutia
recorded an environmental charge of $27 million pretax, $17 million after
tax, or 16 cents per share to its second quarter results. Therefore,
Solutia's loss for the second quarter was $38 million, or 36 cents per
share. Year- to-date losses from continuing operations were $55 million, or
52 cents per share.
For more information on Solutia's cleanup efforts, or its economic
and community activities in Anniston, please visit www.solutia.com/anniston.
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements regarding
environmental remediation. These statements are based on current
expectations, but results may differ materially, depending on such important
factors identified in Solutia's Annual Report on Form 10-K for the year
ended December 31, 2002 and Quarterly Report on Form 10-Q for the period
ended March 31, 2003. These reports are filed with the U.S. Securities and
Exchange Commission and can be accessed through Solutia's investor Internet
site at www.Solutia.com.
CORPORATE PROFILE
Solutia (http://www.Solutia.com) uses world-class skills in applied
chemistry to create value-added solutions for customers, whose products
improve the lives of consumers every day. Solutia is a world leader in
performance films for laminated safety glass and after-market applications;
process development and scale-up services for pharmaceutical fine chemicals;
specialties such as water treatment chemicals, heat transfer fluids and
aviation hydraulic fluid and an integrated family of nylon products
including high-performance polymers and fibers.
Solutia ...Solutions For A Better life.
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Source: Solutia Inc.
St. Louis
08/04/03