PolyOne Sell Rubber Granules Business

PolyOne Corporation, a leading global polymer services company, announced today that it has completed the sale of its Melos(R) rubber granulates operations to the Melos management team, supported by investors from a group of European banks and funds. The purchase price was not disclosed.

The Melos(R) unit produces and sells primarily EPDM (Ethylene Propylene Diene Monomer) rubber granulates for the artificial surfacing market, which includes running tracks, sports fields, playgrounds and safety flooring systems. The business, which PolyOne acquired in 1998, had 2003 sales of approximately $35 million.

PolyOne retains operations on a portion of the Melle site for the manufacture of low-smoke and flame, zero halogen (LSFOH) wire and cable insulation compounds, a technology and process application that remains an investment focus for the Company. PolyOne invested in the LSFOH production facility following the Melos acquisition in 1998. Recently, PolyOne installed new LSFOH equipment in the facility and opened a new LSFOH compound development laboratory in Assesse, Belgium.

"We have enjoyed our short partnership with the Melos team, but now we can focus all of our attention on our core plastic compounding and color additives businesses," said Bernard Baert, PolyOne's vice president and general manager of International Compounds and Colors. "With the focus of the new owners, customers of the Melos operations also will benefit."

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