PolyOne Second-Quarter Earnings Increase 28 Percent

- Best second-quarter and first-half earnings ever -- up 28 percent and 57 percent, respectively, over 2005; revenues increased 11 percent







CLEVELAND, Aug. 2  /PRNewswire-FirstCall/ -- PolyOne Corporation (NYSE: POL), a leading global supplier of specialized polymer materials, services and solutions, today reported sales of $686.4 million for the second quarter ended June 30, 2006, an increase of 11 percent compared with second-quarter 2005 sales of $620.4 million.

The Company reported income before discontinued operations of $42.4 million, or $0.46 per share, in the second quarter of 2006, compared with $33.0 million, or $0.36 per share, in the second quarter of 2005, a 28 percent increase.

Income before discontinued operations for the first six months was $91.3 million, or $0.99 per share, compared with $58.0 million, or $0.63 per share, an increase of 57 percent over the same period in 2005.

"Our Performance Plastics and Distribution business segments capitalized on solid demand in our North American and International markets during the first half of 2006 to realize strong sales and earnings improvements," said Stephen D. Newlin, chairman, president and chief executive officer.  "Coupled with cash distributions from our Resin and Intermediates segment, these results enabled us to reduce our long-term debt during the second quarter and further strengthen our financial profile."

Net cash provided by operating activities for the first half of 2006 was $46.2 million compared with $11.1 million for the first half of 2005. Operating cash flow(1) for the first half of 2006 was $51.0 million compared with a negative $39.8 million for the first half of 2005.  This increase stemmed primarily from stronger earnings and significant improvements in working capital efficiency.  In the second quarter of 2006, the Company retired $15.8 million of long-term debt.

Segment Highlights

Performance Plastics segment: Sales were $537.6 million, an increase of $51.9 million, or 11 percent, compared with second-quarter 2005 sales. Operating income in the second quarter of 2006 increased $2.5 million, or 10 percent, compared with the 2005 second quarter.

Distribution segment: PolyOne Distribution's sales were $189.7 million, an improvement of $19.5 million, or 11 percent, compared with the second quarter of 2005.  Operating income of $5.1 million in the second quarter of 2006 was 28 percent higher than in the second quarter of 2005.

Resin and Intermediates segment: In the second quarter operating income reached $28.9 million compared with $28.5 million in the second quarter of 2005.  Oxy Vinyls, LP earnings remained strong during the quarter. Nevertheless, industry spreads for polyvinyl chloride (PVC) resins in the second quarter of 2006 were slightly lower than in the first quarter as lower average ethylene costs only partially offset a decline in quarterly average market prices for PVC.  SunBelt Chlor-Alkali reported record quarterly earnings and continued to benefit from strong caustic soda and chlorine demand.

Segment Other: Compared with the second quarter of 2005, the Company realized a $2.4 million net benefit from adjustments to various operating reserves and favorable litigation settlements.  Included in this amount was $6.1 million of net pre-tax benefit from the combined effect of legal dispute settlements and adjustments to litigation reserves.

Third-quarter 2006 Business Outlook

PolyOne is cautious about third-quarter demand within Performance Plastics, due to a forecasted slowing in the North American automotive and building products markets.  Management's view, however, is that sales and shipments should approximate second-quarter 2006 levels.  The Company projects that operating income should improve compared with the 2005 third quarter, but is likely to decline compared with the 2006 second-quarter performance as operating margins are anticipated to come under pressure as energy-derived raw material costs increase.

PolyOne projects that Distribution segment sales and shipments should be slightly lower than in second-quarter 2006, but should improve compared with the third quarter of 2005.  Third-quarter 2006 operating income should decline sequentially, but approximate the third-quarter 2005 performance.

In the Resin and Intermediates segment, PolyOne expects earnings for both OxyVinyls and SunBelt to improve significantly compared with the third quarter of 2005, but to trend lower sequentially.  Both businesses would be adversely affected by forecasted lower caustic demand and pricing.  Additionally, industry PVC resin product spreads are projected to narrow as announced PVC price hikes may lag realized and announced ethylene cost increases.  Energy costs are anticipated to move upward as well during the quarter.

The Company anticipates that adjustments to operating and litigation reserves and legal settlements should result in a net benefit in the third quarter of 2006.  While the net impact of non-recurring events is difficult to predict, PolyOne projects that this benefit could approach the net benefit realized in the second quarter of 2006.

Considering all the above factors, PolyOne expects earnings during the third quarter to improve compared with the same period in 2005, but to decline sequentially.

PolyOne continues to anticipate that operating cash flows for the year should substantially exceed those generated in 2005.

  (1) Operating cash flow is a non-GAAP financial measure.  A discussion
      occurs at the end of this release on the use of non-GAAP financial
      measures.

  Second-quarter 2006 Earnings Conference Call and Webcast


PolyOne will host a conference call at 9:00 a.m. Eastern time on Thursday, August 3, 2006.  The conference dial-in number is 888-489-0038 (domestic) or 706-643-1611 (international), conference topic: PolyOne Earnings Call.  A replay will be available for two weeks by calling 800-642-1687 (domestic) or 706-645-9291 (international).  The conference ID for the replay is 9935907. In addition, the call will be broadcast live and then via replay for two weeks on the Company's Web site at http://www.polyone.com/.

About PolyOne

PolyOne Corporation, with 2005 annual revenues of approximately $2.5 billion, is a leading global supplier of specialized polymer materials, services and solutions.  Headquartered in northeast Ohio, PolyOne has operations in North America, Europe, Asia and Australia, and joint ventures in North America and South America.  Product offerings include vinyl and other thermoplastic compounds, polymer coating systems, color and additive masterbatches, and specialty vinyl resins.  See http://www.polyone.com/ for additional information on PolyOne.

Use of Non-GAAP Financial Measures

This earnings release includes the use of both GAAP (generally accepted accounting principles) and non-GAAP financial measures.  The non-GAAP financial measures are: operating cash flow, operating income (loss) before special items and per share impact of special items.  The most directly comparable GAAP financial measures are: net cash provided (used) by operating activities, operating income (loss) and income (loss) per share.

PolyOne's chief operating decision makers use these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment, and to allocate resources.  In addition, operating income before special items and operating cash flow are components of various PolyOne annual and long-term employee incentive plans.

Tables included in this news release reconcile each non-GAAP financial measure with the most directly comparable GAAP financial measure (Attachment 6) and provide detail about special items (Attachment 5).  Also attached are standard financial schedules and a summary of segment results.

Forward-looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward- looking statements give current expectations or forecasts of future events and are not guarantees of future performance.  They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.  You can identify these statements by the fact that they do not relate strictly to historic or current facts.  They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions; prospective changes in raw material costs, product pricing or product demand; future performance, including, without limitation, meeting cash flow goals, receiving cash distributions from equity affiliates and achieving working capital targets; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings; and financial results.  Factors that could cause actual results to differ materially include, but are not limited to:

  - the effect on foreign operations of currency fluctuations, tariffs,
    nationalization, exchange controls, limitations on foreign investment in
    local businesses and other political, economic and regulatory risks;
  - changes in U.S., regional or world polymer consumption growth rates
    affecting PolyOne's markets;
  - changes in global industry capacity or in the rate at which anticipated
    changes in industry capacity come online in the polyvinyl chloride
    (PVC), chlor-alkali, vinyl chloride monomer (VCM) or other industries in
    which PolyOne participates;
  - fluctuations in raw material prices, quality and supply and in energy
    prices and supply, in particular fluctuations outside the normal range
    of industry cycles;
  - production outages or material costs associated with scheduled or
    unscheduled maintenance programs;
  - costs or difficulties and delays related to the operation of joint
    venture entities;
  - lack of day-to-day operating control, including procurement of raw
    materials, of equity or joint venture affiliates;
  - partial control over investment decisions and dividend distribution
    policy of the OxyVinyls partnership and other minority equity holdings
    of PolyOne;
  - an inability to launch new products and/or services within PolyOne's
    various businesses;
  - the possibility of further goodwill impairment;
  - an inability to maintain any required licenses or permits;
  - an inability to comply with any environmental laws and regulations;
  - the cost of compliance with environmental laws and regulations,
    including any increased cost of complying with new or revised laws and
    regulations;
  - unanticipated developments that could occur with respect to
    contingencies such as litigation and environmental matters, including
    any developments that would require any increase in our costs and/or
    reserves for such contingencies;
  - an inability to achieve or delays in achieving or achievement of less
    than the anticipated financial benefit from initiatives related to cost
    reductions and employee productivity goals;
  - a delay in achieving or inability to achieve targeted debt level
    reductions;
  - an inability to access the receivables sale facility as a result of
    breaching covenants due to failure to achieve anticipated earnings
    performance or for any other reason;
  - any poor performance of our pension plan assets and any obligation on
    our part to fund PolyOne's pension plan;
  - any delay and/or inability to bring the North American Color and
    Additives Masterbatch and the Engineered Materials product groups to
    profitability;
  - an inability to raise prices or sustain price increases for products;
  - the occurrence and timing of any benefits from legal settlements or
    adjustments to litigation reserves;
  - an inability to maintain appropriate relations with unions and employees
    in certain locations in order to avoid disruptions of business; and
  - other factors beyond our control affecting our business, including,
    without limitation, changes in the general economy, changes in interest
    rates and changes in the rate of inflation.



We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions.  Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.  You are advised, however, to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K provided to the Securities and Exchange Commission.  You should understand that it is not possible to predict or identify all risk factors.  Consequently, you should not consider any list to be a complete set of all potential risks or uncertainties. (Ref. #80206)

                                                              Attachment 1
  Supplemental Information

           Quarterly Summary of Consolidated Operating Results,
                 Showing Discontinued Operations' Impact
        (In millions of dollars, except per share data, unaudited)

  Accounting for Discontinued Operations


In accordance with Generally Accepted Accounting Principles (GAAP), PolyOne segregates and reports results of discontinued operations net of income taxes as a separate line item on the statement of operations (income statement).  Income or loss from discontinued operations net of income taxes is reported below income before discontinued operations on the income statement.  As a result, reporting and discussion of items above the income before discontinued operations line (such as sales, operating income, interest, and selling and administrative costs) include only the results of continuing operations.

                                                2Q06       2Q05      1Q06

  Operating results:
  Sales - continuing operations                $686.4     $620.4    $674.6

  Operating income                               63.5       53.2      67.9

  Net income                                     42.4       31.3      46.8
      Income before discontinued
       operations                                42.4       33.0      48.9
      Loss from discontinued operations
       net of income taxes                          -       (1.7)     (2.1)

  Earnings (loss) per common share:
  Basic and diluted earnings per share          $0.46      $0.34     $0.51
      Before discontinued operations             0.46       0.36      0.53
      Discontinued operations                       -      (0.02)    (0.02)

  Total per share impact of special
   items (1) after tax:                         $0.17      $0.10      0.17
      Before discontinued operations            $0.17       0.11      0.20
      Discontinued operations                       -      (0.01)    (0.03)

  Other data:
  Sales - discontinued operations                  $-      $31.1      $9.6
  Depreciation and amortization                  14.3       12.4      14.3


  (1) - Special items in a non-GAAP financial measure.  A discussion is at
  the end of the release regarding the use of non-GAAP financial measures.
  A definition and a list of special items appear in Attachment 5.



                                                              Attachment 2

                   PolyOne Corporation and Subsidiaries
       Condensed Consolidated Statements of Operations (Unaudited)
                   (In millions, except per share data)

                                    Three Months Ended   Six Months Ended
                                         June 30,            June 30,
                                      2006     2005      2006       2005
  Sales                              $686.4  $620.4    $1,361.0   $1,232.2
  Operating costs and expenses:
   Cost of sales                      592.7   538.7     1,176.3    1,072.0
   Selling and administrative          49.9    47.8        99.2       94.9
   Depreciation and amortization       14.3    12.4        28.6       24.9
  Employee separation and plant
   phaseout                            (0.2)    0.4        (0.3)       0.6
  Environmental remediation at
   inactive sites                      (2.3)     --        (4.1)        --
  Income from equity affiliates
   and minority interest              (31.5)  (32.1)      (70.1)     (58.1)
  Operating income                     63.5    53.2       131.4       97.9
  Interest expense                    (16.8)  (17.4)      (33.4)     (34.2)
  Interest income                       0.8     0.4         1.3        0.9
  Premium on early extinguishment
   of long-term debt                   (1.2)     --        (1.2)        --
  Other expense, net                   (1.5)   (0.8)       (2.7)      (1.6)
  Income before income taxes
   and discontinued operations         44.8    35.4        95.4       63.0
  Income tax expense                   (2.4)   (2.4)       (4.1)      (5.0)
  Income before discontinued
   operations                          42.4    33.0        91.3       58.0
  Discontinued operations:
   Loss from operations, net of
    income taxes                         --    (1.7)       (2.1)     (13.3)
  Net income                          $42.4   $31.3       $89.2      $44.7


  Earnings (loss) per common share:
   Basic earnings (loss):
    Before discontinued operations    $0.46   $0.36       $0.99      $0.63
    Discontinued operations              --   (0.02)      (0.02)     (0.14)
    Basic earnings per share          $0.46   $0.34       $0.97      $0.49

   Diluted earnings (loss):
    Before discontinued operations    $0.46   $0.36       $0.99      $0.63
    Discontinued operations              --   (0.02)      (0.03)     (0.14)
    Diluted earnings per share        $0.46   $0.34       $0.96      $0.49


  Weighted average shares used
   to compute earnings per share:
    Basic                              92.4    91.8        92.2       91.8
    Diluted                            93.0    92.1        92.6       92.1

  Dividends paid per share of
   common stock                          $-      $-          $-         $-



                                                              Attachment 3

                   PolyOne Corporation and Subsidiaries
            Condensed Consolidated Balance Sheets (Unaudited)
                              (In millions)

                                                     June 30,   December 31,
                                                       2006        2005
  Assets
  Current assets:
      Cash and cash equivalents                         $75.0        $32.8
      Accounts receivable, net                          379.9        320.5
      Inventories                                       228.2        191.8
      Deferred income tax assets                         19.6         20.1
      Other current assets                               18.2         27.4
      Discontinued operations                               -         20.9
          Total current assets                          720.9        613.5
  Property, net                                         423.0        436.0
  Investment in equity affiliates                       302.7        273.9
  Goodwill                                              315.3        315.3
  Other intangible assets, net                            9.6         10.6
  Other non-current assets                               64.4         60.0
  Discontinued operations                                   -          6.7
          Total assets                               $1,835.9     $1,716.0

  Liabilities and Shareholders' Equity
  Current liabilities:
      Short-term bank debt                               $4.6         $7.1
      Accounts payable                                  277.3        232.6
      Accrued expenses                                   84.9         82.4
      Current portion of long-term debt                  19.3          0.7
      Discontinued operations                               -         11.2
          Total current liabilities                     386.1        334.0
  Long-term debt                                        603.7        638.7
  Post-retirement benefits other than pensions          103.5        107.9
  Other non-current liabilities, including pensions     221.4        214.3
  Minority interest in consolidated subsidiaries          5.9          5.4
          Total liabilities                           1,320.6      1,300.3
  Shareholders' equity                                  515.3        415.7
          Total liabilities and shareholders'
           equity                                    $1,835.9     $1,716.0



                                                               Attachment 4

                   PolyOne Corporation and Subsidiaries
       Condensed Consolidated Statements of Cash Flows (Unaudited)
                              (In millions)

                                              Three Months     Six Months
                                                 Ended           Ended
                                                June 30,        June 30,
                                              2006    2005    2006    2005
  Operating Activities
      Net income                             $42.4   $31.3   $89.2   $44.7
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
          Depreciation and amortization       14.3    12.4    28.6    24.9
          Premium on early extinguishment of
           long term debt                      1.2       -     1.2       -
          Loss on disposition of discontinued
           businesses and related plant
           phaseout charge                       -       -     2.3    11.6
          Companies carried at equity and
           minority interest:
              Income from equity affiliates
               and minority interest         (31.5)  (32.1)  (70.1)  (58.1)
              Dividends and distributions
               received                       38.1    19.2    42.2    19.2
          Provision for deferred income taxes  0.3     0.4     0.5     0.9
          Change in assets and liabilities:
              Accounts receivable              3.9     7.2   (43.4)  (53.2)
              Inventories                     (8.5)   23.5   (16.4)   (9.4)
              Accounts payable                12.5   (21.0)   31.7    16.3
              Increase (decrease) in sale
               of accounts receivable            -   (20.6)   (7.9)   38.6
              Accrued expenses and other     (15.7)  (19.2)  (11.6)  (29.1)
          Net cash (used) provided by
           discontinued operations               -     6.5    (0.1)    4.7
  Net cash provided by operating activities   57.0     7.6    46.2    11.1

  Investing Activities
      Capital expenditures                    (7.6)   (9.1)  (12.5)  (18.0)
      Business acquisitions, net of cash
       received                                  -    (1.1)      -    (2.7)
      Proceeds from sale of assets             4.8     7.6     7.2     8.4
      Proceeds from sale of discontinued
       business, net                             -       -    17.3       -
      Net cash used by discontinued
       operations                                -    (0.7)   (0.2)   (0.7)
  Net cash provided (used) by investing
   activities                                 (2.8)   (3.3)   11.8   (13.0)

  Financing Activities
      Change in short-term debt               (2.1)    0.1    (2.4)    1.0
      Change in long-term debt               (17.0)   (1.5)  (17.0)   (1.5)
      Proceeds from exercise of stock
       options                                 0.8     0.1     2.8     0.3
  Net cash used by financing activities      (18.3)   (1.3)  (16.6)   (0.2)

  Effect of exchange rate changes on cash      1.6     0.5     0.8    (1.8)
  Increase (decrease) in cash and cash
   equivalents                                37.5     3.5    42.2    (3.9)
  Cash and cash equivalents at beginning
   of period                                  37.5    31.2    32.8    38.6
  Cash and cash equivalents at end of
   period                                    $75.0   $34.7   $75.0   $34.7



                                                               Attachment 5

                   Summary of Special Items (Unaudited)
                   (In millions, except per share data)



"Special items" include charges related to specific strategic initiatives such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phaseout costs; executive separation agreements; asset impairments; environmental remediation costs for facilities no longer owned or closed in prior years; gains and losses on the divestiture of joint ventures and equity investments; adjustments to reflect a tax benefit on domestic losses; and deferred tax valuation allowances on domestic operating income.

                                                 2Q06       2Q05      1Q06
  Special items

  Continuing operations:
  Employee separation and plant
   phaseout costs (1)                            $0.2      $(0.4)     $0.1
  Asset impairments (2)                          (0.1)         -         -
  Environmental remediation at
   inactive sites (3)                             2.3          -       1.8

      Impact on pretax income                     2.4       (0.4)      1.9

  Income tax benefit on above items              (1.1)       0.2      (0.8)
  Tax allowance (5)                              14.1        9.9      17.1

      Impact on net income (loss) from
       continuing operations                     15.4        9.7      18.2
      Per diluted share impact                   0.17       0.11     0.20

  Discontinued operations:
  Employee separation and plant
   phaseout costs (1)                               -          -         -

      Impact on operating income                    -          -         -

  Net asset impairment and loss on
   disposition of discontinued
   operations (4)                                   -          -      (2.3)

      Impact on pretax income                       -          -      (2.3)

  Income tax benefit on above items                 -          -       0.9
  Tax allowance (5)                                 -       (0.7)     (0.8)

      Impact on net income (loss) from
       discontinued operations                      -       (0.7)     (2.2)
      Per diluted share impact                      -      (0.01)    (0.03)

  Total:
          Impact on net income (loss)           $15.4       $9.0     $16.0
          Per share impact                      $0.17      $0.10     $0.17


  Explanations:
  1. Severance, employee outplacement, external outplacement consulting,
     lease termination, facility closing costs and the write-down of the
     carrying value of plant and equipment resulting from restructuring
     initiatives and executive separation agreements.
  2. Non-cash impairment charges to adjust the carrying value of investments
     to fair market value.
  3. Environmental remediation costs for facilities either no longer owned
     or closed in prior years.
  4. Non-cash impairment charges to adjust the net asset carrying value of
     discontinued operations to estimated net future proceeds and to
     recognize costs that were not allowed to be recognized due to the
     contingent nature of these costs until the business was sold, in
     accordance with generally accepted accounting principles.
  5. Tax allowance to adjust net U.S. deferred income tax assets resulting
     from operating loss carry-forwards.



                                                              Attachment 6

              Reconciliation of Non-GAAP Financial Measures
                              (In millions)



Below is a reconciliation of non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP.

                                                  2Q06       2Q05      1Q06
  Continuing operations:
  Operating income before special items          $61.1      $53.6     $66.0
  Special items in continuing
   operations, before tax                          2.4       (0.4)      1.9
     Operating income                            $63.5      $53.2     $67.9

  Discontinued operations:
  Operating income before special items             $-      $(1.0)     $0.3
  Special items in discontinued
   operations, before tax                            -          -      (2.3)
     Operating income (loss)                        $-      $(1.0)    $(2.0)

  Continuing operations:
  Income per share before impact of
   special items                                 $0.29      $0.25     $0.33
  Per share impact of special items,
   after tax                                      0.17       0.11      0.20
     Diluted income (loss) per share              0.46      $0.36     $0.53

  Discontinued operations:
  Income per share before impact of
   special items                                    $-     $(0.01)    $0.01
  Per share impact of special items,
   after tax                                         -      (0.01)    (0.03)
     Diluted income (loss) per share                $-     $(0.02)   $(0.02)



                                       Three Months Ended  Six Months Ended
  (in millions)                         June 30, June 30,  June 30, June 30,
                                         2006      2005     2006      2005
  Reconciliation to Condensed
  Consolidated Statement of Cash
  Flows

  Net cash provided (used) by
   operating activities                  $57.0     $7.6    $46.2      $11.1
  Net cash provided (used) by
   investing activities                   (2.8)    (3.3)    11.8      (13.0)
  Decrease (increase) in sale of
   accounts receivable                       -     20.6      7.9      (38.6)
  Interest rate swap fair value
   debt adjustment                         0.2      1.6     (0.7)      (0.6)
  Other financing activities              (0.3)    (1.8)     2.3        0.4
  Effect on exchange rate changes
   on cash                                 1.6      0.5      0.8       (1.8)

  Increase (decrease) in borrowed
   debt less cash and cash
   equivalents                           $55.7    $25.2    $68.3     $(42.5)

  Less proceeds from sale of
   discontinued business, net of
   note receivable                           -        -    (17.3)         -
  Plus business acquired, net of
   cash received                             -      1.1        -        2.7

  Operating cash flow                    $55.7    $26.3    $51.0     $(39.8)



                                                               Attachment 7

                 Business Segment Operations (Unaudited)
                              (In millions)



Senior management uses operating income before the effect of "special items" to assess performance and allocate resources to business segments because senior management believes that this measure is useful in understanding current profitability levels and how current levels may serve as a base for future performance.  In addition, operating income before the effect of "special items" is a component various PolyOne annual and long term employee incentive plans and is used in debt covenant computations.

                                                2Q06       2Q05      1Q06
  Business Segments

  Sales:
      Performance Plastics Segment             $537.6     $485.7    $520.2
      Distribution Segment                      189.7      170.2     194.1
      Intersegment eliminations                 (40.9)     (35.5)    (39.7)

                                               $686.4     $620.4    $674.6
  Operating income (loss):
      Performance Plastics Segment              $28.7      $26.2     $27.7
      Distribution Segment                        5.1        4.0       6.2
      Resin & Intermediates Segment              28.9       28.5      36.2
      Other Segment                               0.8       (5.5)     (2.2)

          Operating Income                      $63.5      $53.2      67.9

  Other Data:

  Discontinued operations
      Sales                                        $-      $31.1      $9.6
      Net income (loss)                             -       (1.7)     (2.1)



                Segment Sales and Shipment Volume Summary

                                      2Q06 versus 2Q05     2Q06 versus 1Q06

                            2Q06               Shipment             Shipment
                           Sales,    Sales $,    Lbs.,    Sales $,    Lbs.,
                        % of Total   % Change  % Change   % Change  % Change

  Performance Plastics      72.4 %     10.7 %    15.1 %     3.3 %     4.3 %

  Distribution              27.6       11.5       5.6      (2.2)     (1.8)

  Total                    100.0 %     10.6 %    12.8 %     1.8 %     2.8 %


DATASOURCE: PolyOne Corporation



CONTACT:  Investor & Media Contact, Dennis Cocco, Vice President,

Investor Relations & Communications of PolyOne Corporation, [phone]



Web site:  http://www.polyone.com/

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