Eastman Sells Accurate Dispersions to Sherwin-Williams

KINGSPORT, Tenn., Dec. 1, 2003 – Eastman Chemical Company (NYSE:EMN) today announced the sale of its Accurate Dispersions’ colorants product lines and related assets to The Sherwin-Williams Company (NYSE:SHW). Terms of the agreement have not been disclosed. This transaction is expected to be neutral to Eastman’s ongoing operating earnings.

“The divestiture of Accurate Dispersions is an important step forward in Eastman’s ongoing strategy to improve performance in our coatings, adhesives, specialty polymers and inks segment,” said Brian Ferguson, chairman and CEO of Eastman. “After determining that Accurate Dispersions’ pigment concentrates and additives product lines were not a strategic fit within Eastman’s coatings offerings, we are extremely pleased that Sherwin-Williams, a well respected company in the coatings markets, will be the new owner of Accurate Dispersions.”

"With the consolidation occurring in the chemical industry in general and the colorant business in particular, this acquisition ensures a continuing supply of high-quality colorants to Accurate’s customer base, the coatings industry and our company,” said Chris Connor, Sherwin-Williams’ chairman and CEO. “Accurate Dispersions will operate as an independent business unit within the Sherwin-Williams Consumer Division under the direction of the current Accurate Dispersions management team who have joined Sherwin-Williams.”

Eastman acquired Accurate Dispersions in 2000 as part of its acquisition of McWhorter Technologies. Approximately 140 Eastman employees are associated with the Accurate Dispersions operations. The sale to Sherwin-Williams includes manufacturing and distribution facilities located in South Holland, Ill. Sales revenue attributable to Accurate Dispersions’ products was in the range of $40 million to $45 million in 2002.

In August 2003, Eastman announced that the company was evaluating strategic alternatives for several businesses and product lines in its coatings, adhesives, specialty polymers and inks (CASPI) segment. “Eastman employees at Accurate Dispersions have done a great job in staying focused on their customers over the past several months,” Ferguson said. “We are all committed to ensuring a smooth transition for customers who will now be served by Sherwin-Williams.”

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