SOLUTIA (NYSE:SOA)

First Quarter Highlights

• Net sales of $509 million; a 14% increase from the same period in 2010
• Basic and diluted earnings per share from continuing operations of $.54
• Adjusted EBITDA of $135 million; a 9% increase from the same period in 2010
• Adjusted Earnings per Share (Adjusted EPS) of $.50; a 43% increase from the same period in 2010
• Debt pay down of $77 million
• Full-year Adjusted EPS guidance increased to a range of $2.10 to $2.25 from the previous range of $1.95 to $2.20

"Solutia delivered another quarter of strong earnings despite an escalation in raw material costs, reflective of solid demand growth across all reporting segments and excellent operational performance," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "The strategic improvements we have made to our portfolio and capital structure will allow for continued top- and bottom-line growth for the remainder of 2011."