29.04.2005 – 17:02

Resolution Performance Products LLC

Resolution Performance Products LLC Expects First Quarter 2005 Results to Exceed Analyst Expectations

Houston (ots/PRNewswire)

Resolution Performance Products LLC, a
leading worldwide manufacturer and developer of epoxy resins, today
reported that it expects first quarter 2005 results to exceed
analysts' 2005 estimates. The Company said it anticipates revenues to
be in the range of US$310-315 million up 40% from first quarter 2004
and up 9% from fourth quarter 2004. Net income (loss) is expected to
be in the range of a US$1 million loss to a US$2 million profit for
the 3 months ended March 31, 2005. EBITDA is expected to be in the
range of US$43-45 million up 76% from fourth quarter 2004. Long-term
debt, net of cash is expected to be approximately US$702 million as
of March 31, 2005 which includes approximately US$33 million
outstanding under the revolver credit facility.

"We are pleased that the efforts of our talented and dedicated
employees are reflected in these positive results. Our actions in the
marketplace and cost containment programs have allowed the business
to achieve a sustainable level of profitability," said Marvin O.
Schlanger, Chairman and CEO. "We will continue to work with our
customers to build value through the entire value chain and to ensure
adequate supply of product in the future," Schlanger added.

Resolution Performance Products is a leading worldwide
manufacturer and developer of epoxy resins and is also the leading
global manufacturer of versatic acids and derivatives. Epoxy resins
are chemicals primarily used in the manufacture of coatings,
adhesives, printed circuit boards, fiber reinforced plastics and
construction materials. Versatic acids and derivatives are specialty
products which complement our epoxy resin product offerings in
coatings, adhesives and construction applications. The Company, with
approximately 950 employees, has operations in the United States,
Europe and Asia. Additional information about the Company and annual,
quarterly and current report filings are available on its website at
http://www.resins.com under the corporate information heading.

Certain statements in this press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based
on the Company's current expectations and involve risks and
uncertainties that could cause the Company's actual results to differ
materially from those set forth in the statements. The Company can
give no assurance that such expectations will prove to be correct.
Factors that could cause the Company's results to differ materially
from current expectations include: general economic and business
conditions, industry trends, raw material costs and availability,
changes in demand for its products, actions of its competitors and
the additional factors and risks contained in the Company's
Registration Statement on Form S-4 declared effective on February 4,
2004 (file No. 333-112016) and in its periodic reports filed with the
SEC.

Resolution Performance Products LLC
                Reconciliation of Net Income (Loss) to EBITDA

EBITDA represents income (loss) before income taxes, interest
expense and depreciation and amortization. EBITDA is presented
because it is used by investors to analyze and compare operating
performance, which includes a company's ability to service and/or
incur debt. In addition, management focuses on EBITDA because it is
used as an internal performance measure. However, EBITDA should not
be considered in isolation or as a substitute for net income (loss),
cash flows or other income or cash flow data prepared in accordance
with United States generally accepted accounting principles or as a
measure of a company's profitability or liquidity. EBITDA is not
calculated under GAAP and therefore is not necessarily comparable to
similarly titled measures of other companies. The following table
reconciles the differences between the range of estimated net income
(loss), as determined under United States generally accepted
accounting principles and EBITDA (in millions):

All figures in US$
                                               (Estimated Range)
                                              Three Months Ended
                                                March 31, 2005
    Net income (loss)                          $(1)         $2
    Income tax expense                           9           8
    Interest expense, net                       21          21
    Depreciation and amortization               14          14
    EBITDA                                     $43         $45

Web site: http://www.resins.com

Contact:

David S. Graziosi, Chief Financial Officer of Resolution Performance
Products LLC, +1-832-366-2508