ST. LOUIS, April 22 /PRNewswire/ -- Solutia Inc. (NYSE: SOI) shareholders
gathered today for the company's first-ever annual meeting.  Solutia, an
applied chemistry company based in St. Louis, MO, became an independent
publicly held company last September, following a stock spinoff from Monsanto.
    At the annual meeting, shareholders approved three proposals submitted by
management in order to secure for the company federal tax deductions for
awards made under the company's annual incentive plans.
    In other business, shareholders elected three directors to terms ending in
2001; John C. Hunter III, William Ruckelshaus and John Slaughter.  All three
were elected to Solutia's board by Monsanto as sole shareholder just prior to
the spinoff.  Shareholders also approved the selection of Deloitte & Touche
LLP as Solutia's principal independent auditors for 1998.
    Commenting on the company's initial financial performance, Solutia
Chairman and Chief Executive Officer Robert G. Potter said, "the value of our
stock has appreciated by some 55 percent since share began trading in August
1997.  Potter noted that Solutia employees deserved much of the credit for the
company's early success.  "None of what we're reporting today could have
happened without exceptional commitment by Solutia's people," he said.
    During the meeting, the company announced continued progress in its share
repurchase and its debt reduction initiatives.  Solutia officials reported
that the company had repurchased about 2.4 million shares of common stock
during its first seven months of independence -- including about
900,000 shares repurchased during the first quarter of 1998.
    Potter noted that Solutia has reduced its debt by approximately
$310 million since September 1997.  "We reduced our debt faster than most
thought we would -- or could," he said.  About $70 million of the total debt
reduction was achieved in the first quarter of 1998, the company announced.
    In his report on operations, Solutia President and Chief Operating Officer
John C. Hunter III said that the company's aggressive cost-reduction efforts
are continuing.  "We expect that some $200 million in ongoing expenses will be
cut by year-end 2000," he noted.  At the same time, Hunter said, Solutia is
investing in a number of projects to deliver profitable growth.  The projects
include new industrial nylon fiber and Vydyne nylon polymer production units,
both of which came on stream late last year, a new phenol plant, and capacity
expansions for the company's existing nylon polymerization and acrylonitrile
plants.
    "This is a challenging, exciting time for our company," Hunter said.  "Our
people have demonstrated that they are up to the challenge, and our
operational performance is evidence."
    Prior to the annual meeting, Solutia board of directors declared a
quarterly dividend of $0.01 per share.  The cash dividend will be payable on
June 12, 1998, to shareholders of record May 15, 1998.  The board also elected
Michael E. Miller a vice chairman of the company.  Miller will direct
Solutia's growth and commercial development initiatives.  John J. Ferguson was
elected Senior Vice President with responsibilities for supply chain and
shared services.

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