9 million pre-tax non-cash charge to reflect impairment of net
assets associated with discontinued operations.8)

Earnings (loss) per share
- diluted:
Net income (loss) - total
Company $0. Net income before the effect of special items in
the 2004 first quarter includes earnings from the Elastomers and Performance
Additives business, which was subsequently sold in August 2004. Ethylene costs are expected to be flat to
slightly down in the second quarter.
Other expense, net was only $0 .polyone.
The most directly comparable GAAP financial measures are: net cash used
(provided) by operating activities, operating income (loss) and income (loss)
per share.3 59.4 6.0) (9.1)
Proceeds from sale of assets 0.7)

Financing Activities
Change in short-term debt 0.9) (10 .4) (9. A non-cash impairment charge to adjust the carrying value of deferred
product technology, customer list, customer contract, Internet
investment and note receivable to estimated realizable future cash
flows or fair market value.7 $16.2 $24 ., Sales $, Lbs.4% 7.;
access to capital markets; technological developments; and other risk factors.

mechanically curable

Waltermire, president and chief executive officer.
Shipment volume, excluding sales of the Melos rubber granulates
business that was sold in June 2004, decreased approximately 1 percent.

* Ingrain the drive for continuous productivity gains: For 2005, PolyOne
seeks to lower the total cost of producing and selling a pound or kilo
of product by further improving working capital efficiency, reducing
unit manufacturing costs and keeping selling and administrative (S+A)
costs under 9. This reduction is due to spending cuts, reduced benefit
expenses, and one-time favorable items totaling approximately $4
million relating to the settlement of legal issues and adjustments to
associated reserves.

North American Engineered Materials -- Higher selling prices,
stronger seasonal demand and an improved mix of products sold
produced shipment and sales increases over both the fourth and first
quarters of 2004. Contributing to this estimated increase are projected higher
average selling prices plus volume shipment improvements of 3 percent to 5
percent, reflecting an upsurge in seasonal demand in the second quarter
compared with the first quarter. federal taxes . Consequently, PolyOne's reported net income will
reflect only foreign tax liabilities. The
replay number is 800-642-1687 (domestic) or 706-645-9291 (international).
When PolyOne's chief operating decision makers review consolidated and
segment results, special items are excluded from operating income and are
evaluated on a per-share basis to enhance understanding of current
profitability levels and how current levels may serve as a base for future
performance.
Tables included in this press release reconcile each non-GAAP financial
measure to the most directly comparable GAAP financial measure (Attachment 5)
and provide detail on special items (Attachment 4). 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. You can identify these
statements by the fact that they do not relate strictly to historic or current
facts.21 $(0.3 379.4
Cash payments on environmental remediation at
inactive sites (2.7)
FIFO inventories (31.1) (0.6) 4.2) (3. Severance, employee outplacement, external outplacement consulting,
lease termination, facility closing costs and the write-down of the
carrying value of plant and equipment resulting from restructuring
initiatives.

Attachment 5

Reconciliation of Non-GAAP Financial Measures
(In millions)

Below is a reconciliation of non-GAAP financial measures to the most
directly comparable measures calculated and presented in accordance with
GAAP.8
Special items in continuing
operations, before tax (0.9) (8.5 $20.4 6.7 8.4 (2.

Lyondell to Permanently Cease TDI Production at Lake Charles Plant

"Based on our evaluation of future plant capital requirements, high energy
and raw materials costs and poor projected industry utilization, we do not
expect the Lake Charles TDI business will return to profitability," said Ed
Dineen, senior vice president, Chemicals and Polymers.
Toluene diisocyanate is used in the production of polyurethanes for
flexible foam applications , including consumer goods, transportation and
packaging.

monomer shrinkage

7 million for the first
quarter of 2005 , a $14.

As anticipated, short-term borrowing through PolyOne's receivable sales
facility increased in the first quarter of 2005 compared to the fourth
quarter 2004, resulting from higher working capital required to support
strengthening seasonal demand.02) (0.12)
Income (loss) from
discontinued operations (0.1 $155.

Compared with the first quarter of 2004, shipments were down
slightly.

International -- Seasonal strengthening in the first quarter resulted
in both sales and shipment increases compared with the fourth
quarter. Primary factors in this increase were
a 6 percent rise in shipment volume, due mostly to seasonal effects,
and higher average selling prices, implemented to pass through costs
from the supplier base.

Distribution sales were 15 percent higher compared with the first
quarter of 2004, due almost entirely to higher prices.
This improvement was driven principally by favorable foreign exchange , reduced
post-retirement benefit costs and no debt repurchase premiums. The Form
10-Q contains more details of PolyOne's performance as well as information on
key drivers of operating results .

Use of Non-GAAP Financial Measures
This press release includes the use of both GAAP (generally accepted
accounting principles) and non-GAAP financial measures.0
Deferred income tax assets 19.0 17.7
Accrued expenses 96.6
Minority interest in consolidated subsidiaries 5.5 380 .6)
Adjustments to reconcile (loss) from continuing
operations to net cash provided (used ) by
operating activities of continuing operations:
Employee separation and plant phase -out charges 0.2 (0.5 13.5
Dividends and distributions received - 1.2) (3.06) (0.2) -

Impact on operating income (5.5
Tax allowance (5) 2.04) (0.9 impairment charge for Engineered Films and $0.7)
Less (increase) decrease in
sale of accounts receivable (59.2) 10.9) $17.8) (38.5 $3.6

Other data:
Discontinued operations
Sales:
Elastomers and Performance
Additives $- $- $95.1 60.1 $56. On September
20, 2005, Lyondell announced an indefinite suspension of production at the
300 million pound per year TDI facility while the company evaluated the
long-term prospects for the plant.

spe tearing

15 per
share -- an improvement over the first quarter of 2004 of $9.11 per share.S.

In the Performance Plastics segment , every business unit achieved some
level of higher selling prices in the first quarter of 2005, which
resulted in an improvement in operating income over fourth-quarter 2004
levels. While product
spreads are not back to the average levels in 2004, they are substantially
improved over the fourth-quarter 2004 level.

In-quarter Update Policy
PolyOne intends to release an in-quarter update sometime during June, the
final month of the quarter. PolyOne's chief operating decision makers use operating cash
flow as an internal measure of cash generation from operations, and it is also
a component of the PolyOne Annual Incentive Plan at the corporate level. Also attached are
standard financial schedules and a summary of segment results.4 210.5
Deferred income tax liabilities 14.2
Total shareholders ' equity 389.6
Companies carried at equity and minority interest:
Income from equity affiliates (26.2 of
additional loss on sale of phase-out plant.02 $0.06) $(0.03) $0. 31, March 31,
2005 2004 2004
Reconciliation to Condensed
Consolidated Statement of Cash Flow
Net cash provided (used) by
operating activities of
continuing operations $(1. In addition, operating income
before the effect of "special items" is a component of the PolyOne Annual
Incentive Plan at the corporate level and is used in debt covenant
computations.6
Other Segment $(0."
Lyondell has approximately 280 employees at this plant. Additional factors that could cause results to differ
materially from those described in the forward-looking statements can be found
in the Lyondell Annual Report on Form 10-K for the year ended
December 31, 2004, the Lyondell Quarterly Report on Form 10-Q for the quarter
ended June 30, 2005, and the Lyondell Quarterly Report on Form 10-Q for the
quarter ended September 30, 2005, which will be filed with the SEC in
November 2005 .

polymeric elastomer

Special items for continuing and discontinued operations reduced earnings
in the 2005 first quarter by $0.
"We made good progress during the quarter recovering product spreads --
selling price less raw materials -- in our core businesses," said Thomas A.

A Note on Accounting for Discontinued Operations
In accordance with Generally Accepted Accounting Principles (GAAP ),
PolyOne segregates and reports results of discontinued operations net of tax
as a separate line item on the statement of operations (income statement).6)
Income (loss) before
discontinued operations
- after tax 19.06) 0.05 (0.1
Depreciation and amortization:
Before discontinued operations 12. Sales improved significantly due to the combination of higher
shipments and increased selling prices. The exception was Engineered Materials in Europe, where a
general weakening in the industry has slowed demand. However,
excluding the Melos business that was sold in June 2004, overall
volume declined slightly versus the comparable 2004 quarter.3 million.2 (0.2 263.7) 5.5
Provision for deferred income taxes 0.9) (13.0) 4.2) (0.01) (0. For 1Q05, continuing operations included $0 .4) $(3.21 $(0.04) (0.9) 2.6) $13.5) $(7.9 2.3 11.0% 11.8% 6.7% (1.75 percent interest in Lyondell-
Citgo Refining LP, a refiner of heavy, high-sulfur crude oil.

polyurethanes elastomer

On the plus side, both the North American Plastic Colors and Additives
business and Asian operations posted strong year-over-year improvements
in shipments. In addition, both businesses are focused on market
share gains and sales of higher-value products.4 million compared with the fourth quarter of 2004 and
the first quarter of 2004, respectively.

Quarterly Summary of Consolidated Operating Results
(In millions of dollars, except per share data, unaudited)

1Q05 1Q04 4Q04
Operating results:
Sales - continuing operations $ 576.21 (0.01) (0.
Because all of its operating units raised prices in the first quarter of
2005, PolyOne expects modest sequential spread improvement but does not expect
to see spread recovery to mid-2004 levels until the second half of 2005., regional or world polymer consumption growth rates
affecting PolyOne's markets;
* changes in global industry capacity or in the rate at which anticipated
changes in industry capacity come online in the polyvinyl chloride
(PVC), chlor-alkali, vinyl chloride monomer (VCM) or other industries
in which PolyOne participates;
* fluctuations in raw material prices , quality and supply and in energy
prices and supply, in particular fluctuations outside the normal range
of industry cycles;
* production outages or material costs associated with scheduled or
unscheduled maintenance programs;
* costs or difficulties and delays related to the operation of joint
venture entities;
* lack of day-to-day operating control, including procurement of raw
materials, of equity or joint venture affiliates;
* partial control over investment decisions and dividend distribution
policy of the OxyVinyls partnership and other minority equity holdings
of PolyOne;
* an inability to launch new products and/or services within PolyOne's
various businesses;
* the possibility of further goodwill impairment;
* an inability to maintain any required licenses or permits;
* an inability to comply with any environmental laws and regulations;
* the cost of compliance with environmental laws and regulations,
including any increased cost of complying with new or revised laws and
regulations;
* unanticipated developments that could occur with respect to
contingencies such as litigation and environmental matters, including
any developments that would require any increase in our costs and/or
reserves for such contingencies;
* an inability to achieve or delays in achieving or achievement of less
than the anticipated financial benefit from initiatives related to cost
reductions and employee productivity goals;
* a delay or inability to achieve targeted debt level reductions through
divestitures and/or other means;
* an inability to access the revolving credit facility and/or the
receivables sale facility as a result of breaching covenants due to not
achieving anticipated earnings performance or for any other reason;
* any poor performance of our pension plan assets and any obligation on
our part to fund PolyOne's pension plan;
* any delay and/or inability to bring the North American Colors and
Additives Masterbatch and the Engineered Materials product platforms to
profitability;
* an inability to raise prices or sustain price increases for products;
* an inability or delay beyond December 31, 2005 in finding buyers of
discontinued operations or other non-core assets for reasonable and
acceptable terms;
* an inability to achieve anticipated earnings performance due to the
divestment of a non-core business;
* an inability to complete the sale of discontinued businesses due to
problems or delays associated with legal proceedings, regulatory
approvals and/or buyers receiving financing for the transaction or any
other reasons;
* a delay in the completion of the new manufacturing facility in Southern
China, expected to commence operations in the second quarter of 2005;
and
* other factors affecting our business beyond our control, including,
without limitations, changes in the general economy , changes in
interest rates and changes in the rate of inflation.5) (4.04

Diluted income (loss) per share before discontinued
operations $0.2 $38.6
Discontinued operations 47 .0
Income (loss) from discontinued operations (5.1 (1.4) (64.0)
Proceeds under (decrease in) sale of
accounts receivable 59.4) 11.2) (0.0) (11.3)

Impact on net income from
discontinued operations (1.
3.10) (0.2) $9.1) -
Less proceeds from sale of
business, net of note receivable - - -
Plus business acquired,
net of cash received 1.9 0.,
% of Total % Change % Change % Change % Change*

Performance Plastics
Vinyl Compounds 27.8)

International
Colors and
Engineered
Materials 21.

The repeat unit is usually equivalent to the monomer - the starting material from which the polymer is formed.

dti fromed

7 million for the first quarter ended March 31, 2005, an increase of
$41. A definition and a list of
special items appear in Attachment 4.1 million lower than in the first quarter of
2004.6 12. Asia saw an 8 percent shipment improvement.2 million quarterly average in 2004. Consequently, you should not consider
any list to be a complete set of all potential risks or uncertainties.7 57.1 (1.4

Attachment 2

PolyOne Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except per share data)

March 31, December 31,
2005 2004

Assets
Current assets:
Cash and cash equivalents $31.9 20.6
Total current assets 644.3 441.0 321.1 $1,771.6
Income (loss) from continuing operations 19.6)
Depreciation and amortization 12.2 (0.8 -
Net cash used by investing activities of continuing
operations (9.2 $59.2)
Income tax benefit on above items 0. A non-cash impairment charge to adjust the net asset carrying value of
discontinued operations to estimated net future proceeds.1) $6.3

Continuing operations:
Income per share before
impact of special items $0.06)
Diluted income (loss)
per share $0.0
Distribution Segment 167.8
Resin + Intermediates Segment - - -
Intersegment eliminations (40.2 3.8 16.6 (0. It also is a significant producer of gasoline
blending components . Lyondell is a global company operating on five continents and
employs approximately 10,000 people worldwide.

FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical
facts are forward-looking statements.

polymeric shrinkage

Operating income from continuing operations was $38.6 million.5 percent of sales. Even without the one-time favorable adjustment,
the S+A-to-sales ratio in the first quarter would have been favorably
below PolyOne 's targeted level.6 $515. Mix improvement was driven by new thermoplastic
elastomer and nylon compound applications.polyone.

Form 10-Q
The Company filed today with the Securities and Exchange Commission (SEC)
its Quarterly Report on Form 10-Q for the first quarter of 2005. PolyOne's chief operating decision makers also use these non-
GAAP financial measures for decisions regarding allocation of resources. You are
advised, however, to consult any further disclosures we make on related
subjects in our reports on Form 10-Q, 8-K and 10-K provided to the Securities
and Exchange Commission.9
Total assets $1,803.8
Discontinued operations 0.6 1,391.2 70.6 48.8

Attachment 4

Summary of Special Items (Unaudited)
(In millions )

"Special items" include charges related to specific strategic initiatives
such as the consolidation of operations, restructuring activities
including employee separation costs resulting from personnel reduction
programs, plant closure and phase-out costs, asset impairments ,
environmental remediation costs for facilities no longer owned or closed
in prior years , and gains and losses on the divestiture of joint ventures
and equity investments, adjustments to reflect a tax benefit on domestic
losses and deferred tax valuation allowances on domestic operating income.4) -

Impact on pre-tax income (0.9) (0. deferred income tax assets resulting
from operating loss carry-forwards.07
Per share impact of special
items, after tax (0.5
Net cash used by investing
activities of continuing
operations (9.3

Total 100.

monomer curable

PolyOne noted that restoring spreads over raw
materials will be key to improving operating earnings.04 $(0.06 (0.18)
Before discontinued operations 0.

Overall, shipments in the first quarter were slightly lower compared
with the first quarter of 2004, due to general softness across most
markets, especially automotive applications. In
contrast, Asian shipments improved more than 8 percent. PolyOne projects average
industry PVC resin prices to increase in the second quarter by 2 cents to 3
cents per pound due to increases realized during the first quarter and
announced for the second quarter . The Company expects the effective
foreign tax rate to remain at approximately 30 percent.com in the corporate investor
relations section.
Special items include charges related to specific strategic initiatives
such as the consolidation of operations; restructuring activities such as
employee separation costs resulting from personnel reduction programs, plant
closure and phase-out costs; asset impairments; environmental remediation
costs for facilities no longer owned or closed in prior years; gains and
losses on the divestiture of joint ventures and equity investments;
adjustments to reflect a tax benefit on domestic operating losses; and
deferred tax valuation allowances on domestic operating losses. Factors that could cause actual
results to differ materially include, but are not limited to:

* 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;
* changes in U.

We cannot guarantee that any forward-looking statement will be realized,
although we believe we have been prudent in our plans and assumptions.4
Post-retirement benefits other than pensions 111.2 1.4)
Charges for environmental remediation at inactive
sites - 0.9)
Accounts payable 35.2 -
Net cash provided by financing activities of
continuing operations 1.0)
Per share impact (0.5 $11.9

Attachment 6

Business Segment Operations (Unaudited)
(In millions )

Senior management uses operating income before the effect of "special
items" to assess performance and allocate resources to business segments
because senior management believes that this measure is useful in
understanding current profitability levels and how current levels may
serve as a base for future performance.6

Operating income (loss)
Performance Plastics Segment $11.8
Resin + Intermediates Segment 22.0)

Special items , expense 0.5 6.
Lyondell acquired the TDI plant as part of its 1998 acquisition of ARCO
Chemical Company.

repeatedly dti

PolyOne Reports Best First-Quarter Results Since Formation

4 million , or
$0.3

* First quarter 2004 discontinued sales included revenue from the
Elastomers and Performance Additives business that was sold in August
2004.com . In
addition , operating income before special items is a component of the PolyOne
Annual Incentive Plan at the corporate level and is used in debt covenant
computations. You should understand that it is not possible to
predict or identify all risk factors.8
Depreciation and amortization 12.4
Income from equity affiliates and minority interest (26.06
Diluted income per share $0.8

Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank debt $3.4
Shareholders ' equity:
Preferred stock, 40.0 shares authorized,
122.5 0.1
Net cash provided (used) by operating activities
of continuing operations (1.7) (8.9 0.8) -
Environmental remediation at
inactive sites (3) (0.5 0.5

Impact on net income from
continuing operations (4.14) 0.6) (11.07) (0.
4.
5.S.2)
Operating income (loss) $(5.01 $0.2)
$576.2
Masterbatches

NA Engineered
Material 4.5 15.1)*

Total 71.

repeatedly photopolymer

Although slightly unprofitable in the first quarter of 2005 , North
American Color and Engineered Materials are moving in the right
direction .15 $0.

Vinyl Compounds -- Compared with the fourth quarter of 2004,
shipments improved seasonally as demand increased for building
materials and appliances .

* Distribution Segment: Sales were $167.
The R+I segment should continue to benefit in the second quarter from
increasing market prices for PVC resins and caustic soda and an increase in
PVC resin demand compared with the first quarter.
PolyOne projects generating positive operating cash flows in the second
quarter.

Forward-looking Statements
In this press 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. Should known or unknown risks or uncertainties
materialize, or should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or projected .7 $535.1 616.9 26.0
Accrued expenses and other (6.1
Cash and cash equivalents at beginning of period 38.12) $(0.6 (0.1 -
Other financing activity 2.7) $(41.

1Q05 4Q04 1Q04
Business Segments:
Sales:
Performance Plastics Segment $449.7 $515.2
Operating income $38.1 (1.8) 3.0 (1., plant.

Repetition can be linear, branched, cross-linked or dendritic.

shrinkage thermosets

Net income for the first quarter of 2005 was $13. However, softer demand in the U. Their combined operating income improved approximately $3
million and $0.15)
Income (loss) before
discontinued operations 0.sec. The non-GAAP
financial measures are: operating cash flow, operating income (loss) before
special items on a consolidated basis and per share impact of special items.6 3.6
Accounts receivable, net 309.1) (16.3) (0.8) - -
Less guarantee of Sunbelt
outstanding senior secured
notes - (6.9 $535.4) $(3.6 5.

biocompatible irreversible

Reflecting the Company's success to date, S+A expense in the first
quarter of 2005 was $11.04)

Other data:
Sales - discontinued operations* $65.9 $56.

First-quarter 2005 Highlights (See Attachment 7)
Total Company -- Overall, the Company's continuing business units reported
strong revenue and operating income improvement compared with the fourth
quarter, driven primarily by seasonal demand, higher selling prices and
further strengthening of the Resin and Intermediates earnings.
For the two discontinued operations, Specialty Resins and Engineered
Films, net income before the effect of special items improved over the fourth
quarter of 2004 as a result of higher selling prices, demand and improved
spreads over raw materials. PolyOne's other
European business, Color, saw shipment increases compared with the
fourth quarter."
PolyOne anticipates that revenues from continuing operations should
increase in a range of 7 percent to 10 percent over first-quarter 2005
revenues.
Improved selling prices and shipments for Specialty Resins and Engineered
Films are anticipated to increase net income from discontinued operations in
the second quarter compared with the first quarter.2
billion, is a leading global compounding and North American distribution
company with continuing operations in thermoplastic compounds, specialty
polymer formulations, color and additive systems, and thermoplastic resin
distribution. They use words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe" and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance.5 13.7 24.3) (18.4 34.7
Property , net 431.8 391.5
Change in assets and liabilities:
Accounts receivable (59.7 $16.2) (0.2 (2.1
Operating cash flow $(66.1 $155.6)*

Distribution 28.7 14. ARCO Chemical had purchased the plant from Olin Corporation
in December 1996 .
Lyondell is a major global manufacturer of basic chemicals and derivatives
including ethylene , propylene, titanium dioxide, styrene, polyethylene,
propylene oxide and acetyls.

mechanically photopolymer

05 per share. The most significant special
item was a $10."
Waltermire added, "Cash flow in the quarter was negative, largely due to
working capital investment required to support higher sales growth.3 million .

North American Color -- Higher selling prices and seasonally
improved demand drove higher shipments and sales compared with the
fourth quarter of 2004.S. This information will be posted today on
the Company's Web site at http://www.com . Forward-
looking statements give current expectations or forecasts of future events and
are not guarantees of future performance.6

Net income $13.02)
Discontinued operations (0.04

Weighted average shares used to compute earnings
per share:
Basic 91.1 49.5

Investing Activities
Capital expenditures (8.9) (0.7
Plus net cash provided (used)
by discontinued operations 4.8

Plus voluntary payments to
employee pension plans $- $65.6 - 5.8
Specialty Resins and
Engineered Films 6.7
Depreciation and amortization - -

Special items, expense
before tax $(11.1% (3. HOUSTON, Lyondell Chemical Company
(NYSE: LYO) announced today that it will permanently cease toluene
diisocyanate (TDI) production at its Lake Charles, La. In addition, in subsequent periods, the company expects to
incur various costs , including employee termination benefits of approximately
$20 million, approximately $35 million associated with plant decommissioning
and demolition, and approximately $10 million for contract terminations.
All of such forward-looking statements are based upon the current beliefs and
expectations of management, and are subject to significant risks and
uncertainties.

mechanically dti

9

Operating income - continuing
operations $38.7) 5.03)

Total per share impact of
special items - after tax: (0. Most of this decline was due to sluggish market
conditions, particularly in the wire and cable industry and in vinyl
window applications. We remain committed to
managing our working capital needs, achieving market growth by increasing the
capture rate of targeted customers and returning our North American Color and
Engineered Materials businesses to profitability. The
conference ID for the replay is 9932102 .gov .2 91.3
Goodwill, net 322.6) (5 .5

Effect of exchange rate on changes on cash (2.05

Discontinued operations
Employee separation and plant
phase-out costs (1) (5.6)
Income tax benefit on above items 2.4)
Per share impact (0.7 charge
for stay bonuses for Elastomers and Performance Additives. Tax allowance to adjust net U.9 $20.5
Interest rate swap fair value
debt adjustment (2.0) (38.7 4.1 56.8 0.
In the third quarter 2005, the company will recognize a pre -tax, non-cash
charge of $195 million for impairment of the carrying value of the plant and
related assets. TDI also is used in the manufacture of coatings, sealants,
adhesives and elastomers. The company has a 58.

irreversible dendritic

1 million, or 8 percent, compared with the first quarter of 2004. "We also benefited from
further improvement in our cost structure and a strong contribution from our
equity investments .
Income or loss from discontinued operations is reported below operating income
-- continuing operations on the income statement.8)
Income (loss) from
discontinued operations (5.
Currency exchange boosted sales by $1.5 million income improvement
over the fourth quarter was split nearly equally between OxyVinyls, LP
and SunBelt Chlor -Alkali. "While costs are expected to continue to
pressure our margins and overall growth is slow , we are making steady progress
in the marketplace with higher selling prices. Based on these factors , PolyOne
anticipates that R+I operating income will increase between $7 million and $10
million in the second quarter compared with the first quarter.m. The Form 10-Q can be obtained from the contact listed at
the end of this press release and is also available on the SEC's Web site
at http:/ /www. The purpose of this release is to inform
investors of any material changes to major business drivers as discussed in
the "Outlook" section of earnings releases and Form 10-Q or Form 10-K.6
Selling and administrative 46.7
Discontinued operations 38.0
Other non-current liabilities, including pensions 223.2
Other shareholders' equity 388.1 0.7
Cash and cash equivalents at end of period $31.1
Tax allowance (5) (4.0 0.4) (5. For 1Q05,
includes $10.2 $24.16 $0.7 $428.4 3.4 (2.

ABOUT LYONDELL
Lyondell Chemical Company, headquartered in Houston, Texas , is North
America's third-largest independent, publicly traded chemical company.

curable macrogalleria

and Europe limited
year-over-year shipment growth for most of our operating units.1 (1.05) (0. Demand from wire and cable customers
weakened due to normal seasonal slowing and customers ' caution in
building inventories with copper prices rising.

Second-quarter 2005 Business Outlook
"Our strong earnings performance in the first quarter appears to be
continuing into the second quarter, led principally by our equity
investments," said Waltermire. After consideration of
the impairment and other non-operating charges recorded in the first quarter,
this improvement is anticipated to be between $14 million and $15 million,
resulting in net income from discontinued operations of between $8 million and
$9 million.
PolyOne will continue to maintain a full valuation allowance associated
with U.polyone.
Investors should bear this in mind as they consider forward-looking
statements.6

Interest expense, net (16 .06) 0.7
Inventories 227.4 196.1
Other current assets 18.0
Other intangible assets, net 9.3
Total current liabilities 419.7 640.1 0.4 $4.1) 9.4
Per share impact (0.4 4.
2.3
Guarantee of Sunbelt outstanding
senior secured notes - 6.4
Distribution Segment 5.9 5.S.

shrinkage polymers

By
year end , we anticipate healthy positive cash generation from our operations.4 $4.10) (0 . Compared
with the first quarter of 2004, income improved by $16.
As a result of this combination of factors, PolyOne anticipates that
operating income from continuing operations should increase by $8 million to
$12 million over first-quarter 2005 levels.

About PolyOne
PolyOne Corporation, with 2004 annual revenues of approximately $2.S.
Achievement of future results is subject to risks, uncertainties and
inaccurate assumptions.2)
Operating income 38.3

Income tax expense (2.2
Investment in equity affiliates 289.2 $ 2.0
Long-term debt 638.8

Attachment 3

PolyOne Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

Three Months Ended
March 31,
2005 2004

Operating Activities
Net income $13.2 1.1 $24.2 $3.02)

Discontinued operations:
Income per share before
impact of special items $0.04 $0.06

(in millions) March 31, Dec.1) $(36.0) -
Effect of exchange rate
changes on cash (2.3 $18.4 3.0% 3.8 7.

mechanically repetition

1 million improvement over the same period in 2004 and
a $22.4 million, or $0.7 $535.6 $16.2

Net income (loss) - total
Company $13.0 $(13. Shipments improved,
however , in color additives and vinyl coatings materials. Compared with the first quarter, cash flows should benefit from
higher earnings, cash distributions from equity affiliates (as expected, none
were received in the first quarter) and further working capital efficiency
improvements, partially offset by higher cash interest payments.
PolyOne is providing these non-GAAP financial measures because it believes
they offer investors a top-level management view of PolyOne's financial
performance and enhance investor understanding of current profitability levels
and how current levels may serve as a base for future performance.0) (9.15 $0.6) (0.7)
Minority interest expense - 0.3

Net cash provided by discontinued operations 4.18) (0.6) (5.05 (0.5 3.5%)

Polymer Coatings
(Formulators) 7. Efforts will be
made to reduce the impact to employees, which is expected to include
redeployment opportunities or severance benefits.

dendritic curable

* Higher selling prices , increased seasonal demand boost operating income
sequentially

* Continued strong demand, higher operating margins produce strong Resin
+ Intermediates segment earnings

* Second-quarter outlook anticipates sequentially higher sales and
operating income

* Company reaffirms expectation for significant full-year positive cash
flow that will be employed for further debt reductions

CLEVELAND, PolyOne Corporation
(NYSE: POL ), a leading global polymer compounding and North American
distribution company, today reported sales from continuing operations of
$576.7 $24.07) (0.

* Performance Plastics Segment: Following is a brief description of
quarterly activities within each of the product groups that make up
Performance Plastics.8 million in the first quarter 2005, a
substantially lower amount than the $4. It is
anticipated that Other expense, net in the second quarter 2005 would increase
to approximately $3 million.6
Employee separation and plant phase-out 0.7) 5.21 $(0.3
Accounts payable 244 .3) (0.5)

Increase (decrease) in cash and cash equivalents (7.

Special items ($mm) 1Q04 4Q04 1Q05

Continuing operations
Employee separation and plant
phase-out costs (1) 0.2 (0.6)

Impact on pre-tax income (5.2) (6.10)

Total
Impact on net income (6.

1Q05 4Q04 1Q04
Continuing operations:
Operating income before
special items $38.5
Special items in discontinued
operations, before tax (11.6) (6.14) (0.0 $-
Less proceeds from sale of
assets (0.0% 10.7 10. These forward-looking statements are
based upon the current beliefs and expectations of management, and are subject
to significant risks and uncertainties.

A Polymer is a large molecule built up by the repetition of small, simple chemical units.

monomer segmented

We do
expect to see working capital needs decline during the second quarter.

* Build the North American Colors and Additives and the Engineered
Materials businesses into strong earnings contributors: The Company
projects that both businesses should become profitable in 2005, with an
operating income improvement exceeding $10 million and an increase in
positive cash flow . In Distribution, higher selling prices and shipments helped
boost operating income nearly $1.5 13. Shipment volume
for the quarter was essentially flat versus the same period in 2004. Eastern time on
April 29, 2005.06) 0.1 $1,771.2 102.2 114.8 224.4
Total liabilities and shareholders' equity $1,803.2)
Cash payments on employee separation and plant
phase-out (1.6

Discontinued operations:
Operating income before
special items $6.5) (0.2 $402.9
$65 .6) $(5.9)

NA Color and
Additives 10.2%)*

* Excludes shipments from Melos in first quarter of 2004

Actual results could differ
materially based on factors including, but not limited to, the information
regarding the shut down, impairment and other related matters discussed in
this release. Other factors that may affect actual results include the
following: availability, cost and price volatility of raw materials and
utilities; supply /demand balances; uncertainties associated with the U.

Plastics are one type of polymer These can be broken down into thermoplastics which can repeatedly follow a melt-freeze cycle, and thermosets, which set, or cure once during an irreversible chemical process during the manufacturing phase.

curable fromed

06) (0.

A discussion occurs at the end of this release on the use of non-GAAP
financial measures. First-quarter 2005 operating
income improved compared with the first quarter of 2004 due to lower S+A costs
and higher equity income, partially offset by lower Performance Plastics
segment spreads.

The first quarter of 2005 continued to demonstrate the sluggishness
in the European economy that began in the fourth quarter of 2004.

* Resin and Intermediates Segment: A $7. PolyOne expects that volume shipments in
North America and Europe should be at or slightly lower than second-quarter
2004 levels, as rising prices appear to be motivating customers to manage
their inventory levels more carefully.
We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise .

Attachment 1

PolyOne Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)

Three Months Ended
March 31,
2005 2004

Sales $576.0

Income (loss) per share of common stock:
Basic income (loss) per share before discontinued
operations $0.7 59.6 14.0 shares authorized, no
shares issued - -
Common stock, $.2 shares issued at March 31, 2005 and
December 31, 2004 1.6)
Business acquired, net of cash received (1.2)
Asset impairments (2) (3.2) (3.7) (7.9) $(2.1) $6.7 11. "Hurricane Rita
contributed to the decision, as it damaged the plant and contributed to
increased energy costs.

pdfs thermosets

5 million improvement over the fourth quarter of 2004."

Progress on Priorities

PolyOne has outlined four financial priorities for 2005:

* Accelerate organic business growth: For continuing operations,
PolyOne's targets are a 3 percent to 5 percent sales increase from
volume and a 4 percent to 6 percent increase in revenues.

* Complete the return to a strong financial position: PolyOne's 2005 goal
is to lower its debt coverage ratio to less than 3.0 by paying down
debt with cash generated from improved earnings and the proceeds
resulting from the divestiture of the Specialty Resins and Engineered
Films businesses.5 million, a 10 percent increase
over the fourth quarter of 2004 .
Also, PolyOne does not expect to have the benefit of one-time favorable items
during the second quarter, such as the approximately $4 million in the first
quarter of 2005 relating to the settlement of legal issues and adjustments to
associated reserves. The conference dial-in number is 888-489 -0038 (domestic) or
706-643-1611 (international), conference topic: PolyOne Earnings Call. Information on PolyOne's
products and services can be found at http://www.6

Operating costs and expenses:
Cost of sales 504.9)

Income (loss) before discontinued operations 19.06
Basic income per share $0.15 $0.2 309.4
Current portion of long-term debt 49.4) (10 .9) (17.4 (2.05)

Explanations:
1.5)
Increase (Decrease) in
borrowed debt less cash and
cash equivalents $(67.5 152.9
Operating income (loss)
Elastomers and Performance
Additives $- $- $7.2 3.6) $(6.3% 8.2 5. As a result of
Lyondell's November 30, 2004, acquisition of Millennium Chemicals Inc.S.

irreversible photopolymer

The sales growth of nearly 8 percent in the first quarter, compared
with the same quarter in 2004, was due largely to price increases, with
some contribution from favorable foreign currency exchange effects. As a result, reporting and
discussion of items above the operating income -- continuing operations line
(such as sales, operating income, interest, and selling and administrative
costs) includes only the results of continuing operations.6 (2.

Polymer Coating Systems (Formulators) -- As anticipated, shipments
improved seasonally over fourth -quarter levels, with vinyl coatings
materials, screen printing inks and colorant additives setting the
pace.
Further, raw material costs are anticipated to increase in the second quarter. Included in this total is the
expected increase in R+I segment operating income.

PolyOne First-quarter 2005 Conference Call
PolyOne will host a conference call at 11:00 a . The call will be broadcast live and
then via replay for two weeks on the Company's Web site
at http://www. Headquartered in northeast Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America and South America.
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand;
future performance, including, without limitations, meeting cash flow goals,
receiving cash distributions from equity affiliates and achieving working
capital targets; results of current and anticipated market conditions and
market strategies; sales efforts; expenses; the outcome of contingencies such
as legal proceedings; and financial results.2)
Environmental remediation at inactive sites - 0.8) (2.02)
Discontinued operations (0.1
Other non-current assets 59.01 par, 400.5) 28.9) (3.4
Change in long-term debt - (0.1)
Proceeds from exercise of stock options 0. Environmental remediation costs for facilities either no longer owned
or closed in prior years.2) - 0.0
Specialty Resins and
Engineered Films 65.3

Attachment 7

Sales and Shipment Volume Summary

1Q05 versus 4Q04 1Q05 versus 1Q04
Shipment Shipment
1Q05 Sales, Sales $, Lbs.9 9.,
Millennium and Equistar Chemicals, LP are wholly owned subsidiaries of
Lyondell.

Polypropylene, polyethylene and suchlike are thermoplastics, while most elastomers as well as hard plastics like Bakelite are thermosets .

shrinkage macrogalleria

In addition,
PolyOne has set a minimum goal of $20 million in sales of a wide array
of products incorporating new technologies, which PolyOne is developing
in Europe, Asia and North America.6) (10.14)
Discontinued operations (0. Compared with the first quarter of 2004,
sales and shipments increased because this business gained new
customers, particularly in building materials. Higher seasonal demand for polyvinyl
chloride (PVC) resin, better spreads over raw materials and higher
caustic soda selling prices contributed to the improvement.
Higher chlor-alkali and PVC prices led this improvement .6 448.4)
Other expense, net (0.9)
Income before income taxes and discontinued
operations 21.6)

Income (loss) from discontinued operations, net
of income taxes (5.4 $4.8 91.4
Diluted 92.5 10.3
Discontinued operations 26.1
Total liabilities 1,413.6 10.2) -
Net asset impairment and loss
on disposition of discontinued
operations (4) (6.0 2.2)
Operating income $38.04
Per share impact of
special items, after tax 0.01)
Diluted income (loss)
per share $(0.0 145.9 15.2)
Operating Income $(5.8 12.2 14. and
worldwide economies; current and potential governmental regulatory actions;
terrorist acts; international political unrest; operating interruptions;
legal , tax and environmental proceedings; cyclical nature of the chemical and
refining industries; competitive products and pricing; industry production
capacities and operating rates; risks of doing business outside of the U.