Exhibit
99.2










Media:Dan Jenkins (314)
674-8552


Investors: Susannah Livingston
(314) 674-8914





Solutia
Reaches Agreement with Citi,


Goldman
Sachs and Deutsche Bank to Fund Exit Financing





Solutia
Scheduled to Emerge from Chapter 11 on February 28, 2008








ST. LOUIS – February 25, 2008– Solutia Inc. (NYSE: SOA-WI) today announced it has reached an agreement
with Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and
Deutsche Bank Securities Inc. to fund Solutia’s exit financing package and has
scheduled a closing date on February 28, 2008, at which time Solutia’s plan of
reorganization will become effective and the company will emerge from Chapter
11.




“We are
extremely pleased to have reached an agreement on the exit financing package
that will result in Solutia’s emergence from Chapter 11,” said Jeffry N. Quinn,
chairman, president and CEO of Solutia Inc.  “Importantly, this
agreement enables Solutia to emerge with the plan of reorganization intact,
providing significant recoveries for our stakeholders and providing a firm
foundation for Solutia’s future success.”




Under the
terms of the revised exit financing package, the banks have agreed to waive the
market material adverse change provision that was contained within the original
loan commitment documents and increase the size of the senior secured
asset-based revolving credit







facility
from $400 million to $450 million.  The banks will provide a $1.2
billion senior secured term loan facility at LIBOR plus 500 basis points with a
minimum LIBOR floor of 350 basis points for the first four
years.  Additionally, the exit financing package includes a $400
million senior unsecured bridge facility.  The total cost of the
financing, as well as the available liquidity of the company, is substantially
consistent with the projections that were included in the disclosure statement
previously approved by the bankruptcy court.  Solutia has also agreed
to dismiss the lawsuit, with prejudice, that it filed on February 6, 2008
against the banks once the exit financing is funded.




The
parties have agreed to request that the U.S. Bankruptcy Court for the Southern
District of New York authorize the parties to enter into the revised exit
financing package and find that the revisions are substantially consistent with
the order confirming the company’s plan of reorganization that was previously
approved by the court on November 29, 2007.  A hearing has been set
for Tuesday, February 26, 2008 at 10:00 a.m. EST to obtain these necessary court
actions.




Rothschild
Inc. serves as Solutia’s financial advisor.




# #
#




Forward
Looking Statements





This
press release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which can be identified by the use
of words such as “believes,” “expects,” “may,” “will,” “intends,” “plans,”
“estimates” or “anticipates,” “scheduled to” or other comparable terminology, or
by discussions of strategy, plans or intentions.  These statements are
based on management’s current expectations and assumptions about the industries
in which Solutia operates.  These statements, including our intention
to enter into the credit facilities, are subject to risks and uncertainties,
including without limitation, general market conditions, our ability to satisfy
closing conditions, the performance of the company's business and other risks
detailed from time-to-time in the company's filings with the Securities and
Exchange Commission.   Forward-looking statements are not
guarantees of future performance and are subject to significant risks and
uncertainties that may cause actual results or achievements to be materially
different from the future results or achievements expressed or implied by the
forward-looking statements.  These risks and uncertainties include,
but are not limited to, those described in Solutia’s most recent Annual Report
on




2


Form
10-K, under “Cautionary Statement About Forward Looking Statements,” Solutia’s
quarterly reports on Form 10-Q, and in filings with the U.S. Bankruptcy Court in
connection with the Chapter 11 case of Solutia Inc. and 14 of its U.S.
subsidiaries. These reports can be accessed through the “Investors” section of
Solutia’s website at www.solutia.com.  The bankruptcy court filings
can be accessed by visiting www.trumbullgroup.com.  Solutia disclaims
any intent or obligation to update or revise any forward-looking statements in
response to new information, unforeseen events, changed circumstances or any
other occurrence.





Source:
Solutia Inc.




St.
Louis






2/25/08