----

----

| DELAWARE                                                            | 43-1781797                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification      No.) |

|  Class                        | Outstanding      atMarch 31,      2008 |
|------------------------------------|----------------------------------------|
| Common Stock, $0.01      par value |  60,763,046  shares     |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Successor                                |   |   | Predecessor                                  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | One      Month Ended March 31, 2008 |   |   | Two      Months Ended February 29, 2008 |   |   | Three      Months EndedMarch 31, 2007 |   |
|  Net      Sales                                                                                      |   | $                                        | 332    |   |                                         | $      | 653 |   |   | $ | 702 |   |
| Cost      of goods      sold                                                                              |   |                                     | 316    |   |                                         |   | 555 |   |   |   | 599 |   |
| Gross      Profit                                                                                         |   |                                     | 16     |   |                                         |   | 98 |   |   |   | 103 |   |
| Selling,      general and administrative      expenses                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                     | 26     |   |                                         |   | 51 |   |   |   | 58 |   |
| Research,      development and other operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     | 2      |   |                                         |   | 5 |   |   |   | 8 |   |
| Operating      Income      (Loss)                                                                                                                                                                                                                                                   |   |                                     | (12    | )      |                                         |   | 42 |   |   |   | 37 |   |
| Equity      earnings from      affiliates                                                                                                                                                                                                                       |   |                                     | --     |   |                                         |   | -- |   |   |   | 9 |   |
| Interest      expense      (a)                                                                                                                                                                           |   |                                     | (18    | )      |                                         |   | (21 | ) |   |   | (28 | ) |
| Other      income,      net                                                                                                   |   |                                     | --     |   |                                         |   | 2 |   |   |   | 4 |   |
| Loss      on debt      modification                                                                                                                         |   |                                     | --     |   |                                         |   | -- |   |   |   | (7 | ) |
| Reorganization      items,      net                                                                                                                                                                                                                                                                                    |   |                                     | --     |   |                                         |   | 1,633 |   |   |   | (16 | ) |
| Income      (Loss) Before Income Tax Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | (30    | )      |                                         |   | 1,656 |   |   |   | (1 | ) |
| Income      tax      expense                                                                                                                                                                                                                                                   |   |                                     | --     |   |                                         |   | 206 |   |   |   | 7 |   |
| Net Income      (Loss)                                                                                                                                                                              |   | $                                        | (30    | )      |                                         | $      | 1,450 |   |   | $ | (8 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                     |   |   |                                         |   |   |   |   |   |   |   |
| Basic      and Diluted Income (Loss) per Share:                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |   |   |                                         |   |   |   |   |   |   |   |
| Basic      net income (loss) per      share                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                        | (0.50  | )      |                                         | $      | 13.88 |   |   | $ | (0.08 | ) |
| Diluted      net income (loss) per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                        | (0.50  | )      |                                         | $      | 13.88 |   |   | $ | (0.08 | ) |

----

|                                                                                            |   | Successor                                    |   |    | Predecessor                                 |   |
|-------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|---------|---------------------------------------------|--------|
|                                                                                            |   | One      Month EndedMarch      31, 2008 |   |    | Two      Months EndedFebruary      29, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |
| Net      Income (Loss)                                                                          |   | $                                            | (30    | )       |                                        | $      | 1,450 |   |   | $ | (8 | ) |
| Other      Comprehensive Income (Loss):                                                         |   |                                         |   |    |                                        |   |   |   |   |   |   |   |
| Currency      translation adjustments                                                           |   |                                         | 23     |    |                                        |   | 32 |   |   |   | 2 |   |
| Unrealized      loss on derivative instruments                                                  |   |                                         | (1     | )  |                                        |   | --  |   |   |   | --  |   |
| Amortization      of prior service gain                                                         |   |                                         | --     |    |                                        |   | (3 | ) |   |   | (4 | ) |
| Amortization      of actuarial loss                                                             |   |                                         | --     |    |                                        |   | 2 |   |   |   | 4 |   |
| Actuarial      loss arising during the two months endedFebruary      29, 2008, net of tax of $2 |   |                                         | --     |    |                                        |   | (64 | ) |   |   | -- |   |
| Prior      service gain arising during the two months ended February 29,      2008              |   |                                         | --     |    |                                        |   |  109 |   |   |   |  -- |   |
| Fresh-start      accounting adjustment                                                          |   |                                         | --     |    |                                        |   | (30 | ) |   |   | -- |   |
| Comprehensive      Income (Loss)                                                                |   | $                                            | (8     | )       |                                        | $      | 1,496 |   |   | $ | (6 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Successor      |   |   | Predecessor       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | March 31, 2008 |   |   | December 31, 2007 |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           |   |   |              |   |
| Current      Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |              |   |
| Cash      and cash      equivalents                                                                                                           |   | $              | 71     |   |              | $      | 173 |   |
| Trade      receivables, net of allowances of $0 in 2008 and $4 in2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |           | 507    |   |              |   | 448 |   |
| Miscellaneous      receivables                                                                                                                |   |           | 143    |   |              |   | 133 |   |
| Inventories                                                                                                                                   |   |           | 793    |   |              |   | 417 |   |
| Prepaid      expenses and other      assets                                                                                                   |   |           | 93     |   |              |   | 53 |   |
| Assets      of discontinued      operations                                                                                                   |   |           | 5      |   |              |   | 7 |   |
| Total      Current      Assets                                                                                                                |   |           | 1,612  |   |              |   | 1,231 |   |
| Property, Plant and Equipment,      net of accumulated depreciation of       $10      in 2008 and    $2,699 in      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           | 1,510  |   |              |   | 1,052 |   |
| Goodwill                                                                                                                                      |   |           | 546    |   |              |   | 149 |   |
| Identified Intangible Assets,      net                                                                                                        |   |           | 855    |   |              |   | 58 |   |
| Other      Assets                                                                                                                             |   |           | 271    |   |              |   | 150 |   |
| Total      Assets                                                                                                                             |   | $              | 4,794  |   |              | $      | 2,640 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |              |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |   |   |              |   |   |   |
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |   |   |              |   |   |   |
| Accounts      payable                                                                                                                         |   | $              | 406    |   |              | $      | 343 |   |
| Accrued      liabilities                                                                                                                      |   |           | 319    |   |              |   | 296 |   |
| Short-term      debt, including current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           | 13     |   |              |   | 982 |   |
| Liabilities      of discontinued      operations                                                                                              |   |           | 4      |   |              |   | 6 |   |
| Total      Current      Liabilities                                                                                                           |   |           | 742    |   |              |   | 1,627 |   |
| Long-Term      Debt                                                                                                                           |   |           | 1,848  |   |              |   | 359 |   |
| Postretirement      Liabilities                                                                                                               |   |           | 458    |   |              |   | 80 |   |
| Environmental      Remediation      Liabilities                                                                                               |   |           | 297    |   |              |   | 61 |   |
| Deferred      Tax Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |           | 234    |   |              |   | 45 |   |
| Other      Liabilities                                                                                                                        |   |           | 185    |   |              |   | 141 |   |
| Liabilities      Subject to      Compromise                                                                                                   |   |           | --     |   |              |   | 1,922 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |              |   |   |   |
| Commitments      and Contingencies (Note 10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           |   |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           |   |   |              |   |   |   |
| Shareholders’ Equity      (Deficit):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           |   |   |              |   |   |   |
| Successor      common stock at $0.01 par value; (500,000,000 shares authorized,      60,763,046 shares issued and outstanding in 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           | 1      |   |              |   | -- |   |
| Predecessor      common stock at $0.01 par value; (600,000,000 shares authorized,      118,400,635 shares issued and outstanding in 2007)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | --     |   |              |   | 1 |   |
| Additional      contributed      capital                                                                                                      |   |           | 1,037  |   |              |   | 56 |   |
| Predecessor      stock held in treasury, at cost, 13,941,057 shares in 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           | --     |   |              |   | (251 | ) |
| Predecessor      net deficiency of assets at      spin-off                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           | --     |   |              |   | (113 | ) |
| Accumulated      other comprehensive income      (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |           | 22     |   |              |   | (46 | ) |
| Accumulated      deficit                                                                                                                      |   |           | (30    | )      |              |   | (1,242 | ) |
| Total      Shareholders’ Equity      (Deficit)                                                                                          |   |           | 1,030  |   |              |   | (1,595 | ) |
| Total      Liabilities and Shareholders’ Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $              | 4,794  |   |              | $      | 2,640 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Successor                                         |   |    | Predecessor                                 |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|---------|---------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | One      Month EndedMarch      31,      2008 |   |    | Two      Months EndedFebruary      29, 2008 |    |   | Three      Months EndedMarch      31,      2007 |   |
| INCREASE      (DECREASE) IN CASH AND CASH EQUIVALENTS  OPERATING      ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |   |    |                                        |    |   |   |   |
|   Net      income      (loss)                                                                                                                                        |   | $                                                 | (30    | )       |                                        | $       | 1,450 |   |   | $ | (8 | ) |
|   Adjustments      to reconcile net income (loss) to net cash used      in operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Depreciation and      amortization                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              | 12     |    |                                        |    | 20 |   |   |   | 25 |   |
| Revaluation of assets      and liabilities, net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              | --     |    |                                        |    | (1,591 | ) |   |   | -- |   |
| Discharge of claims and      liabilities, net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | --     |    |                                        |    | 100 |   |   |   | -- |   |
|              Other reorganization items, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                              | --     |    |                                        |    | 52 |   |   |   | 15 |   |
| Pension expense less      than contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              | --     |    |                                        |    | (18 | ) |   |   | (29 | ) |
| Other postretirement      benefits expense less than payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              | (1     | )       |                                        |    | (6 | ) |   |   | (12 | ) |
| Amortization of      deferred credits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              | (1     | )       |                                        |    | (1 | ) |   |   | (2 | ) |
| Amortization of      deferred debt issuance      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | 2      |    |                                        |    | -- |   |   |   | -- |   |
| Deferred income      taxes                                                                                                                                                                                                                                                                                                                                                             |   |                                              | (1     | )       |                                        |    | 4 |   |   |   | 3 |   |
| Equity earnings from      affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | --     |    |                                        |    | -- |   |   |   | (9 | ) |
|                      Restructuring expenses and other      charges                                                                                                                                                                                                                                                                                                                                    |   |                                              | 25     |    |                                        |    | (2 | ) |   |   | 7 |   |
| Changes in assets and      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Income      taxes      payable                                                                                                                                                                                                                                                                         |   |                                              | 4      |    |                                        |    | 5 |   |   |   | -- |   |
| Trade      receivables                                                                                                                                                                                                                                                   |   |                                              | (24    | )       |                                        |    | (34 | ) |   |   | (48 | ) |
| Inventories                                                                                                                                                                    |   |                                              | (27    | )       |                                        |    | (66 | ) |   |   | (41 | ) |
| Accounts      payable                                                                                                                                                                                                                                                    |   |                                              | (3     | )       |                                        |    | 41 |   |   |   | 23 |   |
| Environmental      remediation      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              | (1     | )       |                                        |    | (1 | ) |   |   | (1 | ) |
| Other      assets and      liabilities                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | (5     | )       |                                        |    | (18 | ) |   |   | (23 | ) |
| Cash      Used in Continuing Operations before      Reorganization Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                              | (50    | )       |                                        |    | (65 | ) |   |   | (100 | ) |
| Reorganization      Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Establishment of VEBA      retiree      trust                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              | --     |    |                                        |    | (175 | ) |   |   | -- |   |
|     Establishment      of restricted cash for environmental remediation        and      other legacy payments                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | --     |    |                                        |    | (46 | ) |   |   | -- |   |
| Payment for allowed      secured and administrative claims                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | --     |    |                                        |    | (79 | ) |   |   | -- |   |
| Professional service      fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | (7     | )  |                                        |    | (31 | ) |   |   | (16 | ) |
| Other reorganization      and emergence related payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                              | --     |    |                                        |    | (17 | ) |   |   | (3 | ) |
| Cash      Used in Reorganization      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | (7     | )  |                                        |    | (348 | ) |   |   | (19 | ) |
| Cash      Used in Operations – Continuing Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | (57    | )       |                                        |    | (413 | ) |   |   | (119 | ) |
| Cash      Provided by Operations – Discontinued Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | --     |    |                                        |    | 1 |   |   |   | -- |   |
| Cash      Used in      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              | (57    | )       |                                        |    | (412 | ) |   |   | (119 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Restricted      cash for      acquisition                                                                                                                                                                                                                                                                                            |   |                                              | --     |    |                                        |    | -- |   |   |   | (150 | ) |
| Property,      plant and equipment      purchases                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | (5     | )       |                                        |    | (29 | ) |   |   | (36 | ) |
| Investment      proceeds and property disposals,      net                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                              | --     |    |                                        |    | -- |   |   |   | 4 |   |
| Cash      Used in Investing Activities-Continuing Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                              | (5     | )       |                                        |    | (29 | ) |   |   | (182 | ) |
| Cash      Used in Investing Activities-Discontinued      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | --     |    |                                        |    | -- |   |   |   | (1 | ) |
| Cash      Used in Investing      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                              | (5     | )       |                                        |    | (29 | ) |   |   | (183 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Proceeds      from long-term debt      obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                              | --     |    |                                        |    | 1,600 |   |   |   | -- |   |
| Net      change in long-term revolving credit facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | 53     |    |                                        |    | 190 |   |   |   | -- |   |
| Proceeds      from stock      issuance                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              | --     |    |                                        |    | 250 |   |   |   | -- |   |
| Proceeds      from short-term debt      obligations                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              | --     |    |                                        |    | -- |   |   |   | 325 |   |
| Payment      of short-term debt      obligations                                                                                                                                                                                                                                                                                                                                                           |   |                                              | --     |    |                                        |    | (966 | ) |   |   | -- |   |
| Payment      of long-term debt      obligations                                                                                                                                                                                                                                                                                                                                   |   |                                              | (3     | )       |                                        |    | (366 | ) |   |   | -- |   |
| Payment      of debt obligations subject to compromise                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                              | --     |    |                                        |    | (221 | ) |   |   | -- |   |
| Debt      issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | --     |    |                                        |    | (136 | ) |   |   | (5 | )  |
| Cash      Provided by Financing      Activities                                                                                                                                                                                                                                                                                                                                                  |   |                                              | 50     |    |                                        |    | 351 |   |   |   | 320 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| INCREASE      (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                              | (12    | )       |                                        |    | (90 | ) |   |   | 18 |   |
| CASH      AND CASH EQUIVALENTS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Beginning      of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                              | 83     |    |                                        |    | 173 |   |   |   | 150 |   |
| End      of      period                                                                                                 |   | $                                                 | 71     |    |                                        | $       | 83 |   |   | $ | 168 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                              |   |    |                                        |    |   |   |   |   |   |   |
| Cash      payments for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  $                                           | 6      |    |                                        |  $ | 43 |   |   |  $ | 37 |   |
| Cash      payments for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                              | 1      |    |                                        |    | 4 |   |   |   | 2 |   |

----

----

----

|                                                                   |   | Predecessor       |   |   |                |   |   |    |                                      |   |   |   | Successor     |      |
|------------------------------------------------------------------------|--------|-------------------|--------|--------|---------------------|--------|--------|---------|-------------------------------------------|--------|--------|--------|---------------|-----------|
|                                                                   |   | February 29, 2008 |   |   | Effect      of Plan |   |   |    | Revaluation      ofAssets and Liabilities |   |   |   | March 1, 2008 |      |
| ASSETS                                                                 |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |
| Current      Assets:                                                   |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |
| Cash      and cash equivalents                                         |   | $                 | 180    |   |                | $      | (97    | )       | (a)                                       |   | $      | --     |          |      |   | $ | 83 |   |
| Trade      receivables, net                                            |   |              | 483    |   |                |   | --     |    |                                      |   |   | --     |          |      |   |   | 483 |   |
| Miscellaneous      receivables                                         |   |              | 152    |   |                |   | (1     | )       | (a)                                       |   |   | (1     | )             | (d)       |   |   | 150 |   |
| Inventories                                                            |   |              | 483    |   |                |   | --     |    |                                      |   |   | 308    |          | (d)       |   |   | 791 |   |
| Prepaid      expenses and other assets                                 |   |              | 68     |   |                |   | 30     |    | (a)(b)                                    |   |   | (10    | )             | (d)       |   |   | 88 |   |
| Assets      of discontinued operations                                 |   |              | 5      |   |                |   | --     |    |                                      |   |   | --     |          |      |   |   | 5 |   |
| Total      Current Assets                                              |   |              | 1,371  |   |                |   | (68    | )       |                                      |   |   | 297    |          |      |   |   | 1,600 |   |
| Property,      Plant and Equipment                                     |   |              | 1,066  |   |                |   | --     |    |                                      |   |   | 419    |          | (d)       |   |   | 1,485 |   |
| Goodwill                                                               |   |              | 150    |   |                |   | --     |    |                                      |   |   | 396    |          | (e)       |   |   | 546 |   |
| Identified Intangible      Assets, net                            |   |              | 57     |   |                |   | --     |    |                                      |   |   | 793    |          | (d)       |   |   | 850 |   |
| Other      Assets                                                      |   |              | 150    |   |                |   | 112    |    | (a)(b)                                    |   |   | 2      |          | (d)       |   |   | 264 |   |
| Total      Assets                                                      |   | $                 | 2,794  |   |                | $      | 44     |    |                                      |   | $      | 1,907  |          |      |   | $ | 4,745 |   |
|                                                                   |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ DEFICIT                       |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |   |   |   |   |
| Current      Liabilities:                                              |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |   |   |   |   |
| Accounts      payable                                                  |   | $                 | 405    |   |                | $      | --     |    |                                      |   | $      | --     |          |      |   | $ | 405 |   |
| Accrued      liabilities                                               |   |              | 288    |   |                |   | 14     |    | (a)                                       |   |   | 15     |          | (d)       |   |   | 317 |   |
| Short-term      debt, including current portion of long-term debt |   |              | 1,098  |   |                |   | (1,085 | )       | (b)                                       |   |   | --     |          |      |   |   | 13 |   |
| Liabilities      of discontinued operations                            |   |              | 5      |   |                |   | --     |    |                                      |   |   | --     |          |      |   |   | 5 |   |
| Total      Current Liabilities                                         |   |              | 1,796  |   |                |   | (1,071 | )       |                                      |   |   | 15     |          |      |   |   | 740 |   |
| Long-Term      Debt                                                    |   |              | 386    |   |                |   | 1,410  |    | (b)                                       |   |   | --     |          |      |   |   | 1,796 |   |
| Postretirement      Liabilities                                        |   |              | 86     |   |                |   | 372    |    | (a)                                       |   |   | --     |          |      |   |   | 458 |   |
| Environmental      Remediation Liabilities                             |   |              | 60     |   |                |   | 207    |    | (a)                                       |   |   | 33     |          | (d)       |   |   | 300 |   |
| Deferred      Tax Liabilities                                          |   |              | 47     |   |                |   | (10    | )  | (a)                                       |   |   | 193    |          | (d)  |   |   | 230 |   |
| Other      Liabilities                                                 |   |              | 145    |   |                |   | 34     |    | (a)                                       |   |   | 5      |          | (d)       |   |   | 184 |   |
| Total      Liabilities not Subject to Compromise                       |   |              | 2,520  |   |                |   | 942    |    |                                      |   |   | 246    |          |      |   |   | 3,708 |   |
|                                                                   |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |   |   |   |   |
| Liabilities      Subject to Compromise                                 |   |              | 1,962  |   |                |   | (1,962 | )       | (a)                                       |   |   | --     |          |      |   |   | -- |   |
|                                                                   |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |   |   |   |   |
| Shareholders’ Equity      (Deficit):                             |   |              |   |   |                |   |   |    |                                      |   |   |   |          |      |   |   |   |   |
| Successor      common stock at $0.01 par value                         |   |              | --     |   |                |   | 1      |    | (c)                                       |   |   | --     |          |      |   |   | 1 |   |
| Predecessor      common stock at $0.01 par value                       |   |              | 1      |   |                |   | --     |    |                                      |   |   | (1     | )        | (c)  |   |   | -- |   |
| Additional      contributed capital                                    |   |              | 56     |   |                |   | 1,036  |    | (c)                                       |   |   | (56    | )             | (c)       |   |   | 1,036 |   |
| Predecessor      stock held in treasury, at cost                       |   |              | (251   | )      |                |   | --     |    |                                      |   |   | 251    |          | (c)       |   |   | -- |   |
| Predecessor      net deficiency of assets at spin-off                  |   |              | (113   | )      |                |   | --     |    |                                      |   |   | 113    |          | (c)       |   |   | -- |   |
| Accumulated      other comprehensive income (loss)                     |   |              | (97    | )      |                |   | 127    |    | (a)                                       |   |   | (30    | )             | (c)       |   |   | -- |   |
| Accumulated      deficit                                               |   |              | (1,284 | )      |                |   | (100   | )       | (c)                                       |   |   | 1,384  |          | (c)       |   |   | -- |   |
| Total      Shareholders’ Equity (Deficit)                        |   |              | (1,688 | )      |                |   | 1,064  |    |                                      |   |   | 1,661  |          |      |   |   | 1,037 |   |
| Total      Liabilities and Shareholders’ Equity (Deficit)        |   | $                 | 2,794  |   |                | $      | 44     |    |                                      |   | $      | 1,907  |          |      |   | $ | 4,745 |   |

----

| (a)   | To      record the discharge and payment of liabilities subject to compromise,      payment of accrued post-petition interest, the re-establishment of      liabilities to be retained by Successor, the defeasance of a substantial      amount of our postretirement liabilities and the establishment of       SFC LLC, a fund restricted to the payment of certain Legacy      Liabilities. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | To      record the extinguishment of Predecessor debt and the write-off of any      related unamortized debt financing costs and the establishment of      Successor debt financing and related financing costs pursuant to our      Financing Agreements. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | To      record the net effect of discharge of claims and liabilities subject to      compromise, gain on the revaluation of assets and liabilities,      cancellation of Predecessor common stock, close out of remaining equity      balances of Predecessor in accordance with fresh-start accounting, and the      issuance of Successor common stock and warrants to purchase common      stock. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | To      adjust assets and liabilities to fairvalue. |
|-----------------|-----------------------------------------------------|

| (e)   | The      goodwill of Predecessor has been eliminated and the reorganization value      in excess of amounts allocable to identified tangible and intangible      assets has been classified asgoodwill. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Predecessor       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | December 31, 2007 |   |
| Postretirement      benefits                                                                                                                    |   | $                 | 664    |   |
| Litigation      reserves                                                                                                                        |   |              | 106    |   |
| Accounts      payable                                                                                                                           |   |              | 102    |   |
| Environmental      reserves                                                                                                                     |   |              | 80     |   |
| Other      miscellaneous      liabilities                                                                                                       |   |              | 311    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              |   |   |
| 6.72%      debentures due      2037                                                                                                             |   |              | 150    |   |
| 7.375%      debentures due      2027                                                                                                            |   |              | 300    |   |
| 11.25%      notes due      2009                                                                                                                 |   |              | 223    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 673    |   |
| Unamortized      debt discount and debt issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | (14    | ) |
|      Total      Debt Subject to      Compromise                                                                        |   |              | 659    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              |   |   |
| Total      Liabilities Subject to Compromise                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                 | 1,922  |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Predecessor                            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Two      Months EndedFebruary 29, 2008 |   |   | Three      Months EndedMarch      31, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   |   |   |   |
| Discharge      of claims and liabilities      (a)                                                                          |   | $                                      | (104 | ) |   | $ | -- |   |
| Revaluation      of assets and liabilities      (b)                                                                        |   |                                   | 1,789 |   |   |   | -- |   |
| Professional      fees      (c)                                                                                            |   |                                   | (52 | ) |   |   | (15 | ) |
| Severance      and employee retention costs (d)                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                   | -- |   |   |   | (1 | ) |
| Total      Reorganization Items,      net                                                                                  |   | $                                      | 1,633 |   |   | $ | (16 | ) |

| (a)   | The      discharge of claims and liabilities primarily relates to allowed general,      unsecured claims in our Chapter 11 proceedings, such as (1) claims due to      the rejection or modification of certain executory contracts, (2) claims      relating to changes in postretirement healthcare benefits and the      rejection of our non-qualified retirement plans, and (3) claims relating      to the restructuring of financingarrangements. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | We      revalued our assets and liabilities at estimated fair value as a result of      fresh-start accounting.  This resulted in a $1,789 pre-tax gain,      primarily reflecting the fair value of newly recognized intangible assets,      the elimination of our LIFO reserve and the increase in the fair value of      tangible property and equipment. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Professional      fees for services provided by debtor and creditor professionals directly      related to our reorganizationproceedings. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Expense      provisions related to (i) employee severance costs incurred directly as      part of the Chapter 11 reorganization process and (ii) a retention plan      for certain of our employees approved by the Bankruptcy    Court. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                            | Estimated Useful      Lives |
|---------------------------------|-----------------------------|
| Asset      Classification       | Successor                   | Predecessor |
| Buildings      and Improvements | 5      to 35 years          | 5      to 35 years |
| Machinery      and Equipment    | 5      to 20 years          | 3      to 15 years |

|                                |  Estimated      Useful Lives |
|-------------------------------------|-----------------------------------|
|                                |  Successor                   |  Predecessor |
| Finite-Lived      Intangible Assets | 5      to 27 years                | 5      to 25 years |

----

----

|                                     |   | Three      Months EndedMarch 31, 2007 |   |
|------------------------------------------|--------|---------------------------------------|--------|
|                                     |   |                                  |   |
| Net      sales                           |   | $                                     | 25     |   |
| Income      before income taxes          |   | $                                     | --     |   |
| Income      tax expense                  |   |                                  | --     |   |
| Income      from discontinued operations |   | $                                     | --     |   |

----

|                                        |   | Successor           |   |
|---------------------------------------------|--------|---------------------|--------|
|                                        |   | March      31, 2008 |   |
| Expected      volatility                    |   |                | 26.1   | % |
| Expected      term (in years)               |   |                | 6      |   |
| Risk-free      rate                         |   |                | 4.25   | % |
| Weighted-average      grant date fair value |   | $                   | 5.92   |   |

|                               |   | Options |      |   | Weighted-Average Exercise      Price |    |   | Weighted-Average Remaining      Contractual Life |   |   | AggregateIntrinsicValue(a) |   |
|------------------------------------|--------|---------|-----------|--------|--------------------------------------|---------|--------|--------------------------------------------------|--------|--------|----------------------------|--------|
| Outstanding      at March 1, 2008  |   |    | --        |   |                                 |    | --     |                                             |   |   | --                         |   |   |   | -- |   |
| Granted                            |   |    | 2,911,000 |   |                                 |  $ | 17.33  |                                             |   |   | --                         |   |   |   | -- |   |
| Exercised                          |   |    | --        |   |                                 |    | 0.00   |                                             |   |   | --                         |   |   |   | -- |   |
| Expired                            |   |    | --        |   |                                 |    | 0.00   |                                             |   |   | --                         |   |   |   | -- |   |
| Outstanding      at March 31, 2008 |   |    | 2,911,000 |   |                                 | $       | 17.33  |                                             |   |   | 9.9                        |   |   | $ | (10 | ) |
|                               |   |    |      |   |                                 |    |   |                                             |   |   |                       |   |   |   |   |   |
| Exercisable      at March 31, 2008 |   |    | --        |   |                                 |    | --     |                                             |   |   | --                         |   |   |   | -- |   |

| (a) | Intrinsic value for      stock options is calculated based on the difference between the exercise      price of the underlying awards and the quoted market price of our common      stock as of the reporting date. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                     |   | Shares |      |   | Weighted-AverageGrant Date Fair Value |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|---------------------------------------|--------|
| Outstanding      at March 1,      2008                                                    |   |   | --        |   |                                  |   | -- |   |
| Granted                                                                                                                                                                                                                                                                                                                                                  |   |   | 1,181,960 |   |                                  | $      | 17.10 |   |
| Vested                                                                                                                                                                                                                                                                                                                                                   |   |   | --        |   |                                  |   | 0.00 |   |
| Forfeited                                                                                                                                                                                                                                                                                                                                                |   |   | --        |   |                                  |   | 0.00 |   |
| Outstanding      at March 31, 2008                                                                                                                                                                                                                                                                                                                       |   |   | 1,181,960 |   |                                  | $      | 17.10 |   |

|                                                                                                                                                                                                                                                                                                                                                                                         |   | Successor      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                         |   | March 31, 2008 |   |
| Technical      Specialties                                                            |   | $              | 65     |   |
| SAFLEX®                                                                          |   |           | 197    |   |
| CPFilms                                                                               |   |           | 284    |   |
| Total                                                                                 |   | $              | 546    |   |

----

|                                    |   | Successor                                    |   |   | Predecessor            |   |
|-----------------------------------------|--------|----------------------------------------------|--------|--------|------------------------|--------|
|                                    |   | March      31, 2008                          |   |   | December      31, 2007 |   |
|                                    |   | Estimated      Useful Lifein      Years |   |   | Gross Carrying Value   |   |   | AccumulatedAmortization |   |   | Net Carrying Value |   |   | Estimated      Useful Lifein      Years |   |   | Gross Carrying Value |   |   | AccumulatedAmortization |   |   | Net Carrying Value |   |
| Amortizableintangible      assets:      |   |                                         |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer      relationships             |   | 23      to 27                                |   |   | $                      | 490    |   |   | $ | (2 | ) |   | $ | 488 |   |   |   | 12 |   |   | $ | 1 |   |   | $ | (-- | ) |   | $ | 1 |   |
| Technology                              |   | 5      to 26                                 |   |   |                   | 201    |   |   |   | (1 | ) |   |   | 200 |   |   | 15      to 25 |   |   |   | 18 |   |   |   | (1 | ) |   |   | 17 |   |
| Trade      names                        |   |                                         | 25     |   |                   |   | 13 |   |   |   | (-- | ) |   |   | 13 |   |   | 16      to 25 |   |   |   | 2 |   |   |   | (-- | ) |   |   | 2 |   |
| Patents                                 |   |                                         | 13     |   |                   |   | 5 |   |   |   | (-- | ) |   |   | 5 |   |   | 5      to 10 |   |   |   | 2 |   |   |   | (-- | ) |   |   | 2 |   |
| Contract-based                          |   |                                         |   |   |                   |   | -- |   |   |   | (-- | ) |   |   | -- |   |   | 5      to 20 |   |   |   | 18 |   |   |   | (8 | ) |   |   | 10 |   |
| Non      amortizable intangible assets: |   |                                         |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trademarks                              |   |                                         |   |   |                   |   | 149 |   |   |   | -- |   |   |   | 149 |   |   |   |   |   |   |   | 26 |   |   |   | -- |   |   |   | 26 |   |
| Total      Identified Intangible Assets |   |                                         |   |   |                   | $      | 858 |   |   | $ | (3 | ) |   | $ | 855 |   |   |   |   |   |   | $ | 67 |   |   | $ | (9 | ) |   | $ | 58 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Successor           |   |   | Predecessor       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March      31, 2008 |   |   | December 31, 2007 |   |
| Finished      goods                                                                                                |   | $                   | 424    |   |              | $      | 348 |   |
| Goods      in      process                                                                                         |   |                | 234    |   |              |   | 182 |   |
| Raw      materials and      supplies                                                                               |   |                | 135    |   |              |   | 126 |   |
| Inventories,      at FIFO      cost                                                                                |   |                | 793    |   |              |   | 656 |   |
| Excess      of FIFO over LIFO      cost                                                                            |   |                | --     |   |              |   | (239 | ) |
| Total      Inventories                                                                                             |   | $                   | 793    |   |              | $      | 417 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Successor           |   |   | Predecessor            |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Property,      Plant and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March      31, 2008 |   |   | December      31, 2007 |   |
| Land                                                                                                                     |   | $                   | 89     |   |                   | $      | 37 |   |
| Leasehold      improvements                                                                                              |   |                | 9      |   |                   |   | 41 |   |
| Buildings                                                                                                                |   |                | 262    |   |                   |   | 504 |   |
| Machinery      and      equipment                                                                                        |   |                | 1,068  |   |                   |   | 3,105 |   |
| Construction      in      progress                                                                                       |   |                | 92     |   |                   |   | 64 |   |
| Total      property, plant and      equipment                                                                            |   |                | 1,520  |   |                   |   | 3,751 |   |
| Less      accumulated      depreciation                                                                                  |   |                | (10    | )      |                   |   | (2,699 | ) |
| Total                                                                                                                    |   | $                   | 1,510  |   |                   | $      | 1,052 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Successor           |   |   | Predecessor            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Accrued      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March      31, 2008 |   |   | December      31, 2007 |   |
| Wages      and      benefits                                                                                   |   | $                   | 64     |   |                   | $      | 96 |   |
| Environmental      remediation liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                | 40     |   |                   |   | 17 |   |
| Accrued      selling      expenses                                                                             |   |                | 27     |   |                   |   | 27 |   |
| Accrued      interest                                                                                          |   |                | 11     |   |                   |   | 24 |   |
| Other                                                                                                          |   |                | 177    |   |                   |   | 132 |   |
| Total      Accrued      Liabilities                                                                            |   | $                   | 319    |   |                   | $      | 296 |   |

----

|                              |   | Future      Contractual Payments |   |   | Employment      Reductions |   |   |  Total |   |
|-----------------------------------|--------|----------------------------------|--------|--------|----------------------------|--------|--------|-------------|--------|
| Predecessor                       |   |                             |   |   |                       |   |   |        |   |
| Balance      at December 31, 2007 |   | $                                | 3      |   |                       | $      | 5      |        |   | $ | 8 |   |
| Amounts utilized                  |   |                             | --     |   |                       |   | (1     | )           |   |   | (1 | ) |
| Currency      fluctuations        |   |                             | --     |   |                       |   | 1      |        |   |   | 1 |   |
| Balance      at February 29, 2008 |   |                             | 3      |   |                       |   | 5      |        |   |   | 8 |   |
| Successor                         |   |                             |   |   |                       |   |   |        |   |   |   |   |
| Amounts utilized                  |   |                             | --     |   |                       |   | --     |        |   |   | -- |   |
| Balance      at March 31, 2008    |   | $                                | 3      |   |                       | $      | 5      |        |   | $ | 8 |   |

----

----

----

----

----

----

|                                      |   | Pension Benefits                                   |   |
|-------------------------------------------|--------|----------------------------------------------------|--------|
|                                      |   | Successor                                          |   |   | Predecessor |   |
|                                      |   | One      Month Ended March      31, 2008 |   |   | Two      Months Ended February      29, 2008 |   |   | Three      Months Ended March      31, 2007 |   |
|                                      |   |                                               |   |   |   |   |   |   |   |
| Service      costs for benefits earned    |   | $                                                  | --     |   |   | $ | 1 |   |   | $ | 1 |   |
| Interest      costs on benefit obligation |   |                                               | 6      |   |   |   | 12 |   |   |   | 16 |   |
| Assumed      return on plan assets        |   |                                               | (6     | ) |   |   | (13 | ) |   |   | (17 | ) |
| Actuarial      net loss                   |   |                                               | --     |   |   |   | 2 |   |   |   | 2 |   |
| Settlement      charge                    |   |                                               | --     |   |   |   | 1 |   |   |   | -- |   |
| Total                                     |   | $                                                  | --     |   |   | $ | 3 |   |   | $ | 2 |   |

|                                      |   | Healthcare and Other    Benefits                   |   |
|-------------------------------------------|--------|----------------------------------------------------|--------|
|                                      |   | Successor                                          |   |   | Predecessor |   |
|                                      |   | One      Month Ended March      31, 2008 |   |   | Two      Months Ended February      29, 2008 |   |   | Three      Months Ended March      31, 2007 |   |
| Service      costs for benefits earned    |   | $                                                  | 1      |   |   | $ | 1 |   |   | $ | 1 |   |
| Interest      costs on benefit obligation |   |                                               | 1      |   |   |   | 4 |   |   |   | 6 |   |
| Assumed      return on plan assets        |   |                                               | (1     | ) |   |   | -- |   |   |   | -- |   |
| Prior      service credits                |   |                                               | --     |   |   |   | (3 | ) |   |   | (4 | ) |
| Actuarial      net loss                   |   |                                               | --     |   |   |   | -- |   |   |   | 2 |   |
| Total                                     |   | $                                                  | 1      |   |   | $ | 2 |   |   | $ | 5 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                     |   | Successor           |   |   | Predecessor            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | March      31, 2008 |   |   | December      31, 2007 |   |
| Senior      secured term loan facility due 2014                                                                                                                                                                                                                                                                                                                                                          |   | $                   | 1,197  |   |                   | $      | -- |   |
| Senior      secured asset-based revolving credit facility due 2013                                                                                                                                                                                                                                                                                                                                       |   |                | 243    |   |                   |   | -- |   |
| 15.50%      senior unsecured bridge facility due 2015                                                                                                                                                                                                                                                                                                                                                    |   |                | 401    |   |                   |   | -- |   |
| 6.72%      debentures due      2037                                                               |   |                | --     |   |                   |   | 150 |   |
| 11.25%      notes due      2009                                                                   |   |                | --     |   |                   |   | 223 |   |
| Facility      Agreement due      2011                                                             |   |                | --     |   |                   |   | 231 |   |
| 7.375%      debentures due      2027                                                              |   |                | --     |   |                   |   | 300 |   |
| Flexsys      term loan due      2012                                                              |   |                | --     |   |                   |   | 76 |   |
| Flexsys      revolving credit facility due 2012                                                                                                                                                                                                                                                                                                                                                          |   |                | --     |   |                   |   | 47 |   |
| Maryville      notes due      2022                                                                |   |                | 20     |   |                   |   | 20 |   |
| Total principal      amount                                                                                                     |   |                | 1,861  |   |                   |   | 1,047 |   |
| Unamortized      net discount      (a)                                                            |   |                | --     |   |                   |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                | 1,861  |   |                   |   | 1,047 |   |
| Less      current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                              |   |                | (13    | )      |                   |   | (15 | ) |
| Less      amounts subject to compromise (Note 2)                                                                                                                                                                                                                                                                                                                                                         |   |                | --     |   |                   |   | (673 | ) |
| Total                                                                                             |   | $                   | 1,848  |   |                   | $      | 359 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |   |   |                   |   |   |   |

----

| Reportable      Segment    | Products                                                                                                                                                                                                                                                                                                                                       |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| SAFLEX®               | · SAFLEX®      plastic interlayer· Specialty      intermediate Polyvinyl Butyral resin and plasticizer                                                                                                                                                                                                                |
| CPFilms                    | · LLUMAR®,      VISTA®, GILA® and FORMULA ONE PERFORMANCE     AUTOMOTIVE FILMS®      professional and retail window films· Other      enhanced polymer films for industrial customers                                                                               |
| Technical      Specialties | · CRYSTEX®      insoluble sulphur· SANTOFLEX®      antidegradants· SANTOCURE®      and PERKACIT® primary accelerators· THERMINOL®      heat transfer fluids· SKYDROL®      aviation hydraulic fluids· SKYKLEEN®      brand of aviation solvents |
| Integrated      Nylon      | · Nylon      intermediate “building block” chemicals· Nylon      polymers, including VYDYNE® and      ASCEND®· Carpet      fibers, including the WEAR-DATED® and      ULTRON®      brands· Industrial      nylon fibers                                                |

----

|                                                                                                                                                                                                                                                                                              |   | Successor                                     |   |   | Predecessor                                       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                              |   | One      Month Ended March      31, 2008 |   |   | Two      Months Ended February      29, 2008 |   |   | Three      Months Ended March      31, 2007 |   |
|                                                                                                                                                                                                                                                                                              |   | Net      Sales                                |   |   | Profit      (Loss)                                |   |   | Net      Sales |   |   | Profit      (Loss) |   |   | Net      Sales |   |   | Profit      (Loss) |   |
| Reportable      Segments:                                                                                                                                                                                                                                                                         |   |                                          |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SAFLEX®                                                                                   |   | $                                             | 68     |   |                                              | $      | 3 |   |   | $ | 125 |   |   | $ | 17 |   |   | $ | 169 |   |   | $ | 28 |   |
| CPFilms                                                                                        |   |                                          | 23     |   |                                              |   | 3 |   |   |   | 39 |   |   |   | 9 |   |   |   | 59 |   |   |   | 16 |   |
| Technical      Specialties                                                                     |   |                                          | 88     |   |                                              |   | 12 |   |   |   | 164 |   |   |   | 40 |   |   |   | 39 |   |   |   | 8 |   |
| Integrated      Nylon                                                                          |   |                                          | 150    |   |                                              |   | (11 | ) |   |   | 318 |   |   |   | 2 |   |   |   | 426 |   |   |   | 28 |   |
| Reportable      Segment Totals                                                                                                                                                                                                                                                                    |   |                                          | 329    |   |                                              |   | 7 |   |   |   | 646 |   |   |   | 68 |   |   |   | 693 |   |   |   | 80 |   |
| Unallocated      and      Other                                            |   |                                          | 3      |   |                                              |   | (7 | ) |   |   | 7 |   |   |   | (4 | ) |   |   | 9 |   |   |   | (12 | ) |
| Total                                                                      |   |                                          | 332    |   |                                              |   | -- |   |   |   | 653 |   |   |   | 64 |   |   |   | 702 |   |   |   | 68 |   |
|                                                                                                                                                                                                                                                                                              |   |                                          |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Reconciliation      to Consolidated Totals:                                                                                                                                                                                                                                                 |   |                                          |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and      amortization                                                                                                                                                                                                                                                                |   |                                          |   |   |                                              |   | (12 | ) |   |   |   |   |   |   | (20 | ) |   |   |   |   |   |   | (25 | ) |
| Interest      expense                                                                          |   |                                          |   |   |                                              |   | (18 | ) |   |   |   |   |   |   | (21 | ) |   |   |   |   |   |   | (28 | ) |
| Reorganization items,      net                                                                                                                                                                                                                                                                    |   |                                          |   |   |                                              |   | -- |   |   |   |   |   |   |   | 1,633 |   |   |   |   |   |   |   | (16 | ) |
| Consolidated      Totals:                                                                                                                                                                                                                                                                         |   |                                          |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Sales                                                                            |   | $                                             | 332    |   |                                              |   |   |   | $ | 653 |   |   |   |   |   | $ | 702 |   |   |   |   |
| Income      (Loss) from Continuing     Operations      Before Income Taxes                                                                                                                                                                                               |   |                                          |   |   |                                              | $      | (30 | ) |   |   |   |   |   | $ | 1,656 |   |   |   |   |   |   | $ | (1 | ) |

|                                                                                                                                                                                                                                                                       |   | Successor           |   |   | Predecessor            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                       |   | March      31, 2008 |   |   | December      31, 2007 |   |
| Reportable      Segments:                                                                                                                                                                                                                                                  |   | Assets              |   |   | Assets                 |   |
| SAFLEX®                                                                                                                                                                                                                                                          |   | $                   | 1,360  |   |                   | $      | 525 |   |
|          CPFilms                                                                                                                                                       |   |                | 809    |   |                   |   | 255 |   |
|     Technical      Specialties                                     |   |                | 973    |   |                   |   | 635 |   |
|     Integrated      Nylon                                                                                                                                                                                                                         |   |                | 1,100  |   |                   |   | 1,006 |   |
| Reportable      Segment Totals                                                                                                                                                                                                                                             |   | $                   | 4,242  |   |                   | $      | 2,421 |   |
| Reconciliation      to consolidated totals:                                                                                                                                                                                                                                |   |                |   |   |                   |   |   |   |
| Discontinued      Operations                                                                                                                                                                                                                                               |   |                | 5      |   |                   |   | 7 |   |
| Unallocated      and Other                                                                                                                                                                                                                                                 |   |                | 547    |   |                   |   | 212 |   |
| Consolidated      totals                                                                                                                                                                                                                                                   |   | $                   | 4,794  |   |                   | $      | 2,640 |   |

----

|                                                                                                                                                                                                                                                                       |   | Successor                               |       |   | Predecessor                                 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                                                                                       |   | One      Month EndedMarch      31, 2008 |       |   | Two      Months EndedFebruary      29, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |
| Net      income (loss) used for basic and diluted earnings pershare                                                                                                                                                                                                        |   | $                                       | (30        | )      |                                        | $      | 1,450 |   |   | $ | (8 | ) |
|                                                                                                                                                                                                                                                                       |   |                                    |       |   |                                        |   |   |   |   |   |   |   |
| Weighted-average      number of shares outstanding used for basic earnings (loss) per      share                                                                                                                                                                           |   |                                    |  59.7 |   |                                        |   |  104.5 |   |   |   |  104.5 |   |
| Non-vested      restricted shares                                                                                                                                                                                                                                          |   |                                    | --         |   |                                        |   | -- |   |   |   | -- |   |
| Stock      options                                                                                                                                                                                                                                                         |   |                                    | --         |   |                                        |   | -- |   |   |   | -- |   |
| Warrants                                            |   |                                    | --         |   |                                        |   | -- |   |   |   | -- |   |
| Weighted-average      number of shares outstanding and common equivalent shares used for diluted      earnings (loss) per share                                                                                                                                            |   |                                    |  59.7 |   |                                        |   |  104.5 |   |   |   |  104.5 |   |

----

| Reportable      Segment    | Products                                                                                                                                                                                                                                                                                                                                       |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| SAFLEX®               | · SAFLEX®      plastic interlayer· Specialty      intermediate Polyvinyl Butyral resin and plasticizer                                                                                                                                                                                                                |
| CPFilms                    | · LLUMAR®,      VISTA®, GILA® and FORMULA ONE PERFORMANCE     AUTOMOTIVE FILMS®      professional and retail window films· Other      enhanced polymer films for industrial customers                                                                               |
| Technical      Specialties | · CRYSTEX®      insoluble sulphur· SANTOFLEX®      antidegradants· SANTOCURE®      and PERKACIT® primary accelerators· THERMINOL®      heat transfer fluids· SKYDROL®      aviation hydraulic fluids· SKYKLEEN®      brand of aviation solvents |
| Integrated      Nylon      | · Nylon      intermediate “building block” chemicals· Nylon      polymers, including VYDYNE® and      ASCEND®· Carpet      fibers, including the WEAR-DATED® and      ULTRON®      brands· Industrial      nylon fibers                                                |

----

|                                                                                                                                                                    |   |  Combined                             |     |   |  Predecessor                          |   |     |               |   |   |                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|--------|--------------------------------------------|--------|----------|--------------------|--------|--------|---------------------|--------|
|  (dollars      in millions)                                                                                                                                        |   | Three      Months EndedMarch      31, 2008 |     |   | Three      Months EndedMarch      31, 2007 |   |     | Increase(Decrease) |   |   | %Increase(Decrease) |   |
|                                                                                                                                                                    |   |                                       |     |   |                                       |   |     |               |   |   |                |   |
| Net      Sales                                                                                                                                                          |   | $                                          | 985      |   |                                       | $      | 702      |               |   | $      | 283                 |   |   |   | 40 | % |
|                                                                                                                                                                    |   |                                       |     |   |                                       |   |     |               |   |   |                |   |   |   |   |   |
| Operating      Income:                                                                                                                                                  |   |                                       |     |   |                                       |   |     |               |   |   |                |   |   |   |   |   |
| Reportable      Segment Profit                                                                                                                                          |   | $                                          | 75       |   |                                       | $      | 80       |               |   | $      | (5                  | )      |   |   | (6 | %) |
| Unallocated      and Other                                                                                                                                              |   |                                       | (11      | )      |                                       |   | (12      | )                  |   |   | 1                   |   |   |   | 8 | %  |
| Less:   Depreciation      and Amortization                                                                                                               |   |                                       | (32      | )      |                                       |   | (25      | )                  |   |   |                |   |   |   |   |   |
| Less:   Equity      Earnings from Affiliates, Other Income and Loss on Debt Modification      included in Segment Profit (Loss) and Unallocated andOther |   |                                       |  (2 | )      |                                       |   |  (6 | )                  |   |   |                |   |   |   |   |   |
|                                                                                                                                                                    |   |                                       |     |   |                                       |   |     |               |   |   |                |   |   |   |   |   |
| Operating      Income                                                                                                                                                   |   | $                                          | 30       |   |                                       | $      | 37       |               |   | $      | (7                  | )      |   |   | (19 | %) |
| Charges      included in Operating Income                                                                                                                               |   | $                                          | (23      | )      |                                       | $      | --       |               |   |   |                |   |   |   |   |   |
|                                                                                                                                                                    |   |                                       |     |   |                                       |   |     |               |   |   |                |   |   |   |   |   |

----

|                                    |   |        Combined                   |   |   |        Predecessor                |   |   |               |   |   |                |   |
|-----------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------|
| (dollars      in millions)              |   | Three      Months Ended March 31, 2008 |   |   | Three      Months Ended March 31, 2007 |   |   | Increase(Decrease) |   |   | %Increase(Decrease) |   |
|                                    |   |                                   |   |   |                                   |   |   |               |   |   |                |   |
| Net      Sales                          |   | $                                      | 193    |   |                                   | $      | 169    |               |   | $      | 24                  |   |   |   | 14 | % |
|                                    |   |                                   |   |   |                                   |   |   |               |   |   |                |   |   |   |   |   |
| Segment      Profit                     |   | $                                      | 20     |   |                                   | $      | 28     |               |   | $      | (8                  | )      |   |   | (29 | %) |
| Charges      included in Segment Profit |   | $                                      | (13    | )      |                                   | $      | --     |               |   |   |                |   |   |   |   |   |

|                                    |   | Combined                               |   |   | Predecessor                            |   |   |               |   |   |                |   |
|-----------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------|
|  (dollars      in millions)        |   | Three      Months Ended March 31, 2008 |   |   | Three      Months Ended March 31, 2007 |   |   | Increase(Decrease) |   |   | %Increase(Decrease) |   |
|                                    |   |                                   |   |   |                                   |   |   |               |   |   |                |   |
| Net      Sales                          |   | $                                      | 62     |   |                                   | $      | 59     |               |   | $      | 3                   |   |   |   | 5 | % |
|                                    |   |                                   |   |   |                                   |   |   |               |   |   |                |   |   |   |   |   |
| Segment      Profit                     |   | $                                      | 12     |   |                                   | $      | 16     |               |   | $      | (4                  | )      |   |   | (25 | %) |
| Charges      included in Segment Profit |   | $                                      | (4     | )      |                                   | $      | --     |               |   |   |                |   |   |   |   |   |

----

|                                    |   | Combined                                   |   |   | Predecessor                                |   |   |               |   |                |
|-----------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------|--------|---------------------|
| (dollars      in millions)              |   | Three      Months EndedMarch      31, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |   | Increase(Decrease) |   | %Increase(Decrease) |
|                                    |   |                                       |   |   |                                       |   |   |               |   |                |
| Net      Sales                          |   | $                                          | 252    |   |                                       | $      | 39     |               |   | $                   | 213 |   | N.M. |
|                                    |   |                                       |   |   |                                       |   |   |               |   |                |   |   |   |
| Segment      Profit                     |   | $                                          | 52     |   |                                       | $      | 8      |               |   | $                   | 44 |   | N.M. |
| Charges      included in Segment Profit |   | $                                          | (7     | )      |                                       | $      | --     |               |   |                |   |   |   |

|                                    |   | Combined                                   |   |   | Predecessor                                |   |   |               |   |   |                |   |
|-----------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------|
|   (dollars      in millions)  |   | Three      Months EndedMarch      31, 2008 |   |   | Three      MonthsEnded      March 31, 2007 |   |   | Increase(Decrease) |   |   | %Increase(Decrease) |   |
|                                    |   |                                       |   |   |                                       |   |   |               |   |   |                |   |
| Net      Sales                          |   | $                                          | 468    |   |                                       | $      | 426    |               |   | $      | 42                  |   |   |   | 10 | % |
|                                    |   |                                       |   |   |                                       |   |   |               |   |   |                |   |   |   |   |   |
| Segment      Profit (Loss)              |   | $                                          | (9     | )      |                                       | $      | 28     |               |   | $      | (37                 | )      |   | N.M. |   |
| Charges      included in Segment Profit |   | $                                          | (2     | )      |                                       | $      | --     |               |   |   |                |   |   |   |   |   |

----

|                                                                      |   | Combined                                   |   |   | Predecessor                                |   |   |                     |   |   |                |   |
|---------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------|--------|--------|---------------------|--------|
|  (dollars      in millions)                                          |   | Three      Months EndedMarch      31, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |   |  Increase(Decrease) |   |   | %Increase(Decrease) |   |
| Components      of Unallocated and Other:                                 |   |                                       |   |   |                                       |   |   |                     |   |   |                |   |
| Other      Operations Segment Loss                                        |   | $                                          | (1     | )      |                                       | $      | (1     | )                        |   |   |                |   |   |   |
| Corporate      Expenses                                                   |   |                                       | (9     | )      |                                       |   | (13    | )                        |   |   |                |   |   |   |
| LIFO      adjustment                                                      |   |                                       | --     |   |                                       |   | (4     | )                        |   |   |                |   |   |   |
| Equity      Earnings from Affiliates                                      |   |                                       | --     |   |                                       |   | 9      |                     |   |   |                |   |   |   |
| Other      Income, net                                                    |   |                                       | (1     | )      |                                       |   | 4      |                     |   |   |                |   |   |   |
| Loss      on Debt Modification                                            |   |                                       | --     |   |                                       |   | (7     | )                        |   |   |                |   |   |   |
| Total      Unallocated and Other results                                  |   | $                                          | (11    | )      |                                       | $      | (12    | )                        |   | 1      |                |   | 8 | %  |
|          Gains (Charges) included in Unallocated and Other |   | $                                          | 3      |   |                                       | $      | (7     | )                        |   |   |                |   |   |   |

|                       |   | Combined                                   |   |   | Predecessor                                |   |   |               |   |   |                |   |
|----------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------|--------|--------|---------------------|--------|
| (dollars      in millions) |   | Three      Months EndedMarch      31, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |   | Increase(Decrease) |   |   | %Increase(Decrease) |   |
|                       |   |                                       |   |   |                                       |   |   |               |   |   |                |   |
| Interest      Expense      |   | $                                          | 39     |   |                                       | $      | 28     |               |   | $      | 11                  |   |   |   | 39 | % |

|                                   |   | Combined                                   |   |   | Predecessor                                |   |   |               |   |                |
|----------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------|--------|---------------------|
|   (dollars      in millions) |   | Three      Months EndedMarch      31, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |   | Increase(Decrease) |   | %Increase(Decrease) |
|                                   |   |                                       |   |   |                                       |   |   |               |   |                |
| Reorganization      Items, net         |   | $                                          | 1,633  |   |                                       | $      | (16    | )                  |   | $                   | 1,649 |   | N.M. |

----

|                       |   | Combined                                   |   |   | Predecessor                                |   |   |               |   |                |
|----------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------|--------|---------------------|
| (dollars      in millions) |   | Three      Months EndedMarch      31, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |   | Increase(Decrease) |   | %Increase(Decrease) |
|                       |   |                                       |   |   |                                       |   |   |               |   |                |
| Income      Tax Expense    |   | $                                          | 206    |   |                                       | $      | 7      |               |   | $                   | 199 |   | N.M. |

| Increase/(Decrease)                                                                                                                                                                                                                                                                                                                                                     |   | SAFLEX® |   |   | CPFilms |   | Technical Specialties |   | Integrated      Nylon |   | Unallocated/Other |   | Consolidated |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------|--------|-----------------------|--------|-----------------------|--------|-------------------|--------|--------------|--------|--------|
| Impact      on:                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |    |   |                  |   |                  |   |              |   |         |   |   |
| Cost      of goods sold                                                                                                                                                                                                                                                                                                                                                 |   | $            | 12     |   |    | $      | 4                     |   | $                     | 7      |              | $      | 2            |   | $      | -- |   | $ | 25 |   | (a) |
|                                                                                                                                                                                                                                                                                                                                                                    |   |         | --     |   |    |   | --                    |   |                  | --     |              |   | --           |   |   | (3 | ) |   | (3 | ) | (b) |
|                                                                                                                                                                                                                                                                                                                                                                    |   |         | 1      |   |    |   | --                    |   |                  | --     |              |   | --           |   |   | -- |   |   | 1 |   | (c) |
| Operating      Income      Impact                                                         |   |         | (13    | )      |    |   | (4                    | )      |                  | (7     | )                 |   | (2           | )      |   | 3 |   |   | (23 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |         |   |   |    |   |                  |   |                  |   |              |   |         |   |   |   |   |   |   |   |   |
| Reorganization      Items,      net                                                       |   |         | --     |   |    |   | --                    |   |                  | --     |              |   | --           |   |   | 1,633 |   |   | 1,633 |   | (d) |
| Pre-tax      Income Statement Impact                                                                                                                                                                                                                                                                                                                                    |   | $            | (13    | )      |    | $      | (4                    | )      | $                     | (7     | )                 | $      | (2           | )      | $      | 1,636 |   |   | 1,610 |   |   |
| Income      tax impact                                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |    |   |                  |   |                  |   |              |   |         |   |   |   |   |   | 194 |   | (e) |
| After-tax      Income Statement Impact                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |    |   |                  |   |                  |   |              |   |         |   |   |   |   | $ | 1,416 |   |   |

|  a)                    | Charges      resulting from the step-up in basis of our inventory in accordance with      fresh-start accounting ($25 million pre-tax and after-tax).                                                                                                                                                                                                                                                                         |
|----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  b)                    | Gain      resulting from joint settlements with Monsanto of legacy insurance      policies with insolvent insurance carriers ($3 million pre-tax and      after-tax).                                                                                                                                                                                                                                                         |
|  c)     | Restructuring costs      related principally to severance and retraining costs ($1 million pre-tax      and after-tax).                                                                                                                                                                                                                                                                                                       |
|  d)               | Reorganization      items, net consist of the following: $104 million charge on the settlement      of liabilities subject to compromise, $1,789 million gain from fresh-start      accounting adjustments, and $52 million of professional fees for services      provided by debtor and creditor professionals directly related to our      reorganization proceedings ($1,633 million pre-tax and $1,439      after-tax).  |
|  e)                         | Income tax expense      has been provided on gains and charges at the tax rate in the jurisdiction      in which they have been or will berealized.                                                                                                                                                                                                                                                                                |

----

| Increase/(Decrease)                                                                                                                                                                                                                                                                                                                                                     |   | SAFLEX® |   |   | CPFilms |   |   | Technical      Specialties |   |   | Integrated Nylon |   |   | Unallocated/Other |   |   | Consolidated |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------|--------|--------|----------------------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|--------------|--------|--------|
| Impact      on:                                                                                                                                                                                                                                                                                                                                                         |   |         |   |   |    |   |   |                       |   |   |             |   |   |              |   |   |         |   |   |
| Cost      of goods sold                                                                                                                                                                                                                                                                                                                                                 |   | $            | --     |   |    | $      | --     |                       |   | $      | --               |   |   | $                 | --     |   |         | $      | --     |   |   | $ | -- |   |   |
| Operating      Income      Impact                                                         |   |         |   |   |    |   |   |                       |   |   | --               |   |   |              | --     |   |         |   | --     |   |   |   | -- |   |   |
|                                                                                                                                                                                                                                                                                                                                                                    |   |         |   |   |    |   |   |                       |   |   |             |   |   |              |   |   |         |   |   |   |   |   |   |   |   |
| Loss      on debt      modification                                                       |   |         | --     |   |    |   | --     |                       |   |   | --               |   |   |              | --     |   |         |   | (7     | ) |   |   | (7 | ) | (a) |
| Reorganization      Items,      net                                                       |   |         | --     |   |    |   | --     |                       |   |   | --               |   |   |              | --     |   |         |   | (16    | ) |   |   | (16 | ) | (b) |
| Pre-tax      Income Statement Impact                                                                                                                                                                                                                                                                                                                                    |   | $            | --     |   |    | $      | --     |                       |   | $      | --               |   |   | $                 | --     |   |         | $      | (23    | ) |   |   | (23 | ) |   |
| Income      tax impact                                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |    |   |   |                       |   |   |             |   |   |              |   |   |         |   |   |   |   |   | -- |   | (c) |
| After-tax      Income Statement Impact                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |    |   |   |                       |   |   |             |   |   |              |   |   |         |   |   |   |   | $ | (23 | ) |   |

| a)   | We      recorded a charge of approximately $7 million (pre-tax and after-tax – see      note (c) below) to record the write-off of debt issuance costs and to      record the DIP facility as modified at its fair value as of the amendment      date. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Reorganization      items, net consist of the following:  $15 million of      professional fees for services provided by debtor and creditor      professionals directly related to our reorganization proceedings and $1      million of expense provisions related to (i) employee severance costs      incurred directly as part of the Chapter 11 reorganization process and      (ii) a retention plan for certain of our employees approved by the      Bankruptcy Court ($16 million pre-tax and after-tax – see note (c)      below). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | The      above items were considered to have like pre-tax and after-tax impact as      the tax benefit or expense realized from these events is offset by the      change in valuation allowance for U.S. deferred tax assets resulting from      uncertainty as to their recovery due to our Chapter 11 bankruptcy      filing. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                       |   | Combined                                   |   |   | Predecessor                                |   |   |               |   |
|--------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------|--------|
|  (dollars      in millions)           |   | Three      Months EndedMarch      31, 2008 |   |   | Three      Months EndedMarch      31, 2007 |   |   | Increase(Decrease) |   |
|                                       |   |                                       |   |   |                                       |   |   |               |   |
| Continuing      Operations                 |   |                                       |   |   |                                       |   |   |               |   |
| Cash      used in operating activities     |   | $                                          | (470   | )      |                                       | $      | (119   | )                  |   | $ | (351 | ) |
| Cash      used in investing activities     |   | $                                          | (34    | )      |                                       | $      | (182   | )                  |   | $ | 148 |   |
| Cash      provided by financing activities |   | $                                          | 401    |   |                                       | $      | 320    |               |   | $ | 81 |   |

|                             |   | Successor           |   |   | Predecessor            |   |   |               |
|----------------------------------|--------|---------------------|--------|--------|------------------------|--------|--------|--------------------|
|  (dollars      in millions) |   | March      31, 2008 |   |   | December      31, 2007 |   |   | Increase(Decrease) |
|                             |   |                |   |   |                   |   |   |               |
| Continuing      Operations       |   |                |   |   |                   |   |   |               |
| Current      assets              |   | $                   | 1,607  |   |                   | $      | 1,224  |               |   |   |
| Current      liabilities         |   |                | 738    |   |                   |   | 1,621  |               |   |   |
| Working      Capital             |   | $                   | 869    |   |                   | $      | (397   | )                  |  $    |                          1,266 |

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| EXHIBITNUMBER |   |  DESCRIPTION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1           |   | Second      Amended and Restated Certificate of Incorporation of Solutia Inc.      (incorporated by reference to Exhibit 3.1 to Solutia's Form 8-K filed on      March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.2           |   | Amended      and Restated Bylaws of Solutia Inc. (incorporated by reference to Exhibit      3.2 to Solutia's Form 8-K filed on March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.1           |   | Non-Qualified      Stock Option Agreement pursuant to the Solutia Inc. 2007 Management      Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.2           |   | Restricted      Stock Award Agreement Pursuant To The Solutia Inc.  2007      Management Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.3           |   | Restricted      Stock Unit Award Agreement Pursuant To The Solutia Inc. 2007 Management      Long-Term Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.4           |   | Registration      Rights Agreement, dated as of November 19, 2007, by and among Solutia      Inc. and the holders party thereto  (incorporated by reference to      Exhibit 4.1 to Solutia’s Form 8-K filed March 5,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.5           |   | Registration      Rights Agreement, dated as of February 28, 2008, by and between      Solutia Inc. and Monsanto Company  (incorporated by reference to      Exhibit 4.2 to Solutia’s Form 8-K filed March 5,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.6           |   | Solutia      Inc. 2007 Management Long-Term Incentive Plan (incorporated by reference      to Exhibit 4(c) to Solutia’s registration statement on Form S-8      filed February 28, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.7           |   | Solutia      Inc. 2007 Non-Employee Director Stock Compensation Plan (incorporated by      reference to Exhibit 4(d) to Solutia’s registration statement on      Form S-8 filed February 28, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.8           |   | Warrant      Agreement, dated as of February 28, 2008, by and between Solutia Inc. and      American Stock Transfer and Trust Company, as Warrant Agent       (incorporated by reference to Exhibit 4.1 to Solutia’s Form 8-K filed      March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1          |   | 2008      Solutia Inc. Annual Incentive Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.2          |   | Debtors'      Fifth Amended Joint Plan of Reorganization Pursuant to Chapter 11 of the      Bankruptcy Code (As Modified) (incorporated by reference to      Exhibit 2.1 to Solutia’s Form 8-K filed December    5, 2007)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.3          |   | Amended      and Restated Monsanto Settlement Agreement dated as of February 28,      2008 among Solutia Inc., Monsanto Company and SFC LLC (incorporated by      reference to Exhibit 10.1 to Solutia’s Form 8-K filed March 5,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.4          |   | Pharmacia      Indemnity Agreement, dated as of February 28, 2008, by and between      Solutia Inc. and Pharmacia Corporation (incorporated by reference to      Exhibit 10.2 to Solutia’s Form 8-K filed March 5,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.5          |   | First      Amended and Restated Retiree Settlement Agreement dated as of      July 10, 2007 among Solutia Inc. and the claimants set forth      therein  (incorporated by reference to Exhibit 10.3 to Solutia’s      Form 8-K filed March 5, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.6          |   | 2008      Retiree Welfare Plan (incorporated by reference to Exhibit 10.4      to Solutia’s Form 8-K filed March 5, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.7          |   | Limited      Liability Company Agreement of SFC LLC, dated as of February 28, 2008,      between SFC LLC and its sole member (incorporated by reference to      Exhibit 10.5 to Solutia’s Form 8-K filed March 5,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.8          |   | Solutia      Inc. Annual Incentive Plan (incorporated by reference to Exhibit 10.6      to Solutia’s Form 8-K filed March 5, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.9          |   | Credit      Agreement (Term Loan), dated as of February 28, 2008, by and among Solutia      Inc., the lender parties thereto, Citibank, N.A., as Administrative Agent      and Collateral Agent, Goldman Sachs Credit Partners L.P., as Syndication      Agent, Deutsche Bank AG New York Branch, as Documentation Agent, and      Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P. and      Deutsche Bank Securities Inc., as Joint Lead Arrangers and as Joint      Bookrunners  (incorporated by reference to Exhibit 10.1 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                    |
| 10.10         |   | Credit      Agreement (Asset Based Revolving Credit Facility), dated as of February      28, 2008, by and among Solutia Inc., Solutia Europe SA/NV and Flexsys      SA/NV, the lender parties thereto, Citibank, N.A., as Administrative Agent      and Collateral Agent, Citibank International PLC, as European Collateral      Agent, Deutsche Bank AG New York Branch, as Syndication Agent, Goldman      Sachs Credit Partners L.P., as Documentation Agent, and Citigroup Global      Markets Inc., Goldman Sachs Credit Partners L.P. and Deutsche Bank      Securities Inc., as Joint Lead Arrangers and as Joint Bookrunners      (incorporated by reference to Exhibit 10.2 to Solutia’s Form 8-K      filed March 4, 2008)  |
| 10.11         |   | Credit      Agreement (Bridge Facility), dated as of February 28, 2008, by and among      Solutia Inc., the lender parties thereto, Citibank, N.A., as      Administrative Agent, Goldman Sachs Credit Partners L.P., as Syndication      Agent, Deutsche Bank AG New York Branch, as Documentation Agent, and      Citigroup Global Markets Inc.,Goldman Sachs Credit Partners L.P. and      Deutsche Bank Securities Inc., as Joint Lead Arrangers and as Joint      Bookrunners  (incorporated by reference to Exhibit 10.3 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                                    |
| 10.12         |   | Guarantee      Agreement, dated as of February 28, 2008, by and among certain      subsidiaries of Solutia Inc. party hereto, as Guarantors, and Citibank,      N.A., as Collateral Agent (Term Loan) (incorporated by reference to      Exhibit 10.4 to Solutia’s Form 8-K filed March 4,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.13         |   | Security      Agreement, dated as of February 28, 2008, by and among Solutia Inc., the      subsidiaries party thereto,as Grantors, and Citibank N.A., as Collateral      Agent (Term Loan) (incorporated by reference to Exhibit 10.5 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.14         |   | Pledge      Agreement, dated as of February 28, 2008, by and among Solutia Inc., the      subsidiaries party thereto, as Pledgors, and Citibank N.A., as Collateral      Agent (Term Loan) (incorporated by reference to Exhibit 10.6 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.15         |   | Guarantee      Agreement, dated as of February 28, 2008, by and among certain      subsidiaries of Solutia Inc. party hereto, as Guarantors, and Citibank,      N.A., as Collateral Agent (ABL Facility) (incorporated by reference to      Exhibit 10.7 to Solutia’s Form 8-K filed March 4,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.16         |   | Security      Agreement, dated as of February 28, 2008, by and among Solutia Inc., the      subsidiaries party thereto, as Grantors, and Citibank N.A., as Collateral      Agent (ABL Facility) (incorporated by reference to Exhibit 10.8 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.17         |   | Pledge      Agreement, dated as of February 28, 2008, by and among Solutia Inc., the      subsidiaries party thereto, as Pledgors, and Citibank N.A., as Collateral      Agent (ABL Facility) (incorporated by reference to Exhibit 10.9 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.18         |   | Guarantee      Agreement, dated as of February 28, 2008, by and among certain      subsidiaries of Solutia Inc. party hereto, as Guarantors, and Citibank,      N.A., as Collateral Agent (Bridge Facility) (incorporated by reference to      Exhibit 10.10 to Solutia’s Form 8-K filed March 4,      2008)                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.19         |   | Intercreditor      Agreement, dated as of February 28, 2008, by and among Solutia Inc., each      of the subsidiaries from time to time party thereto, Citibank, N.A., in      its capacity as administrative agent and collateral agent for the holders      of the Term Loan Obligations, and Citibank, N.A., in its capacity as      administrative agent and collateral agent for the holders of the Revolving      Credit Obligations (incorporated by reference to Exhibit 10.11 to      Solutia’s Form 8-K filed March 4, 2008)                                                                                                                                                                                                 |
| 31.1          |   | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.2          |   | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.1          |   | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.2          |   | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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