BRECKSVILLE, Ohio, May 14 /PRNewswire/ -- PMD Group Inc. today reported
results for the month of March as well as the quarter ended March 31, 2001.
The quarterly results include two months of operations as BFGoodrich
Performance Materials (Performance Materials), a segment of The B.F. Goodrich
Company (BFGoodrich), and one month of operations as PMD Group Inc., an
independent company.  As such, the results since the acquisition do not
include certain businesses previously within Performance Materials that were
not acquired.  For the month of March, PMD reported sales of $95.8 million and
earnings before interest, taxes, depreciation and amortization (EBITDA) of
$19.2 million.  For the same period in the prior year as a segment of
BFGoodrich, the Company realized sales of $108.8 million and EBITDA of $21.2
million.
    The sales decrease in the month of March was primarily the result of
volume declines in the Company's products sold to the paper and packaging,
textile and automotive industries. The decrease was partially offset by volume
growth in products sold to the consumer products industry.  Unfavorable
foreign currency exchange rates and the exclusion of Telene(R) Polymer sales
in 2001 (as the sales are now part of a joint venture) also negatively
impacted sales.
    Gross profit for March decreased from $34.2 million in 2000 to $28.5
million in 2001.  The decrease is primarily associated with reduced sales
volume, increased raw material and energy cost, and the incremental
depreciation and amortization expense associated with the acquisition of the
Performance Materials business of BFGoodrich, partially offset by lower
overhead costs.
    Operating income for March decreased from $13.5 million in 2000 to $9.4
million in 2001.  The decrease was primarily attributable to volume declines,
increased raw material and energy costs, a weaker Euro and the incremental
depreciation and amortization expense associated with the acquisition of the
Performance Materials business of BFGoodrich.  The decrease was partially
offset by stronger demand in our consumer specialty segment and a favorable
sales mix.
    Steve Demetriou, President and Chief Executive Officer said "We are in a
challenging economic and operating environment, especially in our performance
coatings segment, but we are pleased with the resiliency in our consumer
specialties segment and specialty plastics business.  We expect the present
economic and operating climate to continue at least through the first half of
the year.  We have begun to refocus and streamline our cost structure, as well
as aggressively pursue new growth opportunities."

    First Quarter 2001 Results
    For the quarter, PMD reported sales of $282.8 million and EBITDA of $44.1
million.  For the same period in the prior year as a segment of BFGoodrich,
the Company reported sales of $307.7 million and EBITDA of $58.3 million.  The
factors attributable to the quarterly results are consistent with those
described above for the month of March.
    PMD Group will be hosting a conference call to discuss first quarter
results on Wednesday May 16, 2001 at 2:00 PM EDT.  Please call 1 (800) 446-
2782 (confirmation code 4040773) and ask to be connected to the PMD call.
International callers should dial 1 (847) 413-3235.  A replay of the call will
be available for 48 hours by calling 1 (888) 843-8996 with the above
confirmation code.
    This release contains forward-looking statements that relate to future
events or performance.  These statements reflect the Company's current
expectations, and the Company does not undertake to update or revise these
forward-looking statements, even if experience or future changes make it clear
that any projected results expressed or implied in this or other Company
statements will not be realized.  Furthermore, investors are cautioned that
these statements involve risks and uncertainties, many of which are beyond the
Company's control, which could cause actual results to differ materially from
the forward-looking statements.
    Investors are cautioned not to place undue reliance on any forward-looking
statements contained herein, which speak only as of the date hereof.  The
Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
    PMD Group Inc. is a leading global producer and marketer of
technologically advanced specialty chemicals for a broad range of consumer and
industrial applications. The Company was formed as an independent entity on
February 28, 2001, when an investor group led by AEA Investors Inc., and
including affiliates of DLJ Merchant Banking Partners and DB Capital Partners,
Inc., acquired the Performance Materials business from BFGoodrich.

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