OMN OMNOVA Solutions Inc

FAIRLAWN, Ohio, Jan. 7 /PRNewswire-FirstCall/ -- In an ongoing effort to reduce costs and right-size its business, OMNOVA Solutions Inc. (NYSE:OMN) today announced that it had taken cost reduction actions which are expected to provide $19 million of year-over-year savings in 2009. "With the highly volatile economic environment, we wanted to provide some perspective on where the Company stands as we enter 2009," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "Actions taken in 2008 helped OMNOVA post a profitable second half and fourth quarter despite a weakening global economy. In addition, during the fourth quarter the Company reduced its total debt by $12.1 million, to $188.1 million. These actions strengthen our competitive position and provide positive momentum going into 2009." Actions include: -- Aggressive cost reductions company-wide with headcount down 11% in 2008 and early fiscal 2009, as the Company further embraces a lean operating approach and leverages its investment in a recently implemented enterprise- wide business system. -- Pricing actions to help offset the raw material inflation that remained at historically high levels through the fourth quarter. -- Aggressive pursuit of reduced raw material costs, led by a reorganized global purchasing team. -- New business wins driven by innovative new products and penetration of adjacent markets where OMNOVA can leverage its capabilities to deliver value to customers. OMNOVA Solutions will release earnings on January 20, 2009, for the fourth quarter ending November 30, 2008. OMNOVA Solutions Inc. is a technology-based company with proforma 2007 sales of $836 million and a current workforce of approximately 2,630 employees worldwide. OMNOVA is an innovator of emulsion polymers, specialty chemicals, and decorative and functional surfaces for a variety of commercial, industrial and residential end-uses. Visit OMNOVA Solutions on the internet at http://www.omnova.com/. This news release may contain forward-looking statements concerning trends, expectations, estimates, forecasts and projections relating to the Company and its business, industries, markets, products, results of operations, financial condition, accounting policies and management judgments, among other things. These statements are intended to qualify for the protections afforded forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements may generally be identified by the use of forward-looking terms such as "may," "should," "projects," "forecasts," "seeks," "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "optimistic", "likely," "will," "would," "could," or similar terms. There are many risks, uncertainties and factors that could cause actual results or outcomes to differ materially from those expressed in or implied by the Company's forward-looking statements. Some of these risks, uncertainties and factors include, but are not limited to, the following: general economic trends affecting the Company's end-use markets; prices and availability of raw materials including styrene, butadiene, vinyl acetate monomer, polyvinyl chloride, acrylics and textiles; ability to increase pricing to offset raw material cost increases; product substitution and/or demand destruction due to product technology, performance or cost disadvantages; customer and/or competitor consolidation; ability to successfully develop and commercialize new products; customer ability to compete against increased foreign competition; ability to successfully implement productivity enhancement and cost reduction initiatives; operational issues at the Company's facilities; the Company's strategic alliance, joint venture and acquisition activities; acts of war or terrorism, natural disasters or other acts of God; changes in governmental and regulatory policies; compliance with extensive environmental, health and safety laws and regulations; rapid inflation in health care costs and assumptions used in determining health care cost estimates; risks associated with foreign operations including political unrest and fluctuations in exchange rates of foreign currencies; prolonged work stoppage resulting from labor disputes with unionized workforce; assumptions used in determining pension plan expense and funding, such as return on assets and discount rates and changes in pension funding regulations; litigation against the Company including adverse litigation judgment or settlement and absence of or inadequacy of insurance coverage for such litigation, judgments or settlements; availability of financing to fund operations and, if available, the rates and terms of such financing; substantial debt and leverage and the ability to service that debt including increases in applicable short or long-term borrowing rates; and continuing to meet the listing requirements of the New York Stock Exchange. The Company disclaims any obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. DATASOURCE: OMNOVA Solutions Inc. CONTACT: Sandi Noah, Communications, +1-330-869-4292; Michael Hicks, Investor Relations, +1-330-869-4411, both of OMNOVA Solutions Web site: http://www.omnova.com/

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