Olin to Acquire Pioneer

  
    
  
  
    
      Olin Corporation (NYSE: OLN) and Pioneer Companies, Inc. (Nasdaq: 
      PONR) announced today that they have reached a definitive agreement 
      under which Olin will acquire Pioneer, a leading producer of 
      chlor-alkali products. The proposed transaction, which has been approved 
      by the Board of Directors of both companies, calls for Olin to pay 
      $35.00 in cash for each outstanding share of Pioneer common stock. 
      Closing of the transaction is subject to customary conditions including 
      regulatory approvals and approval by Pioneer's shareholders. Olin 
      expects that the transaction will be completed in the second half of 
      2007.
    
    
      “The combination of Olin’s 
      and Pioneer's businesses creates a Chlor-Alkali producer with 
      outstanding capabilities to serve the needs of customers across North 
      America” said Olin Chairman, President and 
      Chief Executive Officer Joseph D. Rupp. “This 
      is a desirable business that we know very well. Our ability to 
      meaningfully add value through synergies and best practices will benefit 
      our shareholders. The combined companies will have a more diversified 
      geographic footprint, a complementary bleach and HCL product mix and a 
      broader distribution network.”
    
    
      Olin management believes that the acquisition will result in at least 
      $35 million of annual cost savings and will be immediately accretive to 
      Olin’s earnings per share. Cost savings will 
      be obtained through the optimization of logistics, purchasing, 
      manufacturing costs, and overhead.
    
    
      On a combined basis, Olin’s and Pioneer's 
      Chlor-Alkali businesses generated revenue of more than $1.1 billion in 
      2006. “With this acquisition, we will become 
      the #3 player in Chlor-Alkali and the #1 player in industrial bleach in 
      North America. The acquisition provides an improved platform from which 
      to continue to grow our chemicals business,” 
      Rupp said.
    
    
      Michael Y. McGovern, the Chairman, President and Chief Executive Officer 
      of Pioneer, commented, “We believe this 
      transaction is very positive for our shareholders and bondholders. We 
      also believe that it will be positive for most of our employees who will 
      join the combined company. Finally, as we have always strived to be a 
      customer-driven company, we believe that our customers will benefit from 
      this transaction since the combined company will be larger and will 
      provide more points of distribution for our customers.”
    
    
      CONFERENCE CALL INFORMATION
    
    
      Olin will host a conference call to discuss the proposed transaction 
      with securities analysts at 10:00 AM Eastern Time, on May 21, 2007. The 
      call will feature remarks by Joseph D. Rupp, Olin's Chairman, President 
      and Chief Executive Officer, John L. McIntosh, Olin’s 
      Vice President and President of Chlor-Alkali Products, and John E. 
      Fischer, Olin's Vice President and Chief Financial Officer. A slide 
      presentation that accompanies the call is available on our website, www.olin.com, 
      in the Investor section under Recent Press Releases and Speeches.
    
    
      The call will be webcast live on our corporate website and will be 
      accessible under the Conference Call icon. Listeners should log on to 
      the website at least 5 minutes before the call. The call will also be 
      audio archived on the Olin website for future replay. You may choose to 
      listen to the conference call by dialing 800-810-0924 or 913-981-4900. A 
      replay of this conference call will be available beginning at 1:00 PM 
      (ET) today through midnight, Monday, June 4 by calling 888-203-1112 or 
      719-457-0820 (replay pass code: 7904260). A text of the prepared remarks 
      from the conference call will be available on the website in the 
      Investor section under Recent Press Releases and Speeches after the 
      conclusion of the call.
    
    
      COMPANY DESCRIPTIONS
    
    
      Olin Corporation is a manufacturer concentrated in three business 
      segments: Chlor Alkali Products, Metals, and Winchester. Chlor Alkali 
      Products manufactures chlorine and caustic soda, sodium hydrosulfite, 
      hydrochloric acid, hydrogen, potassium hydroxide and bleach products. 
      Metals products include copper and copper alloy sheet, strip, foil, rod, 
      welded tube, fabricated parts, and stainless steel strip and aluminum 
      strip. Winchester products include sporting ammunition, reloading 
      components, small caliber military ammunition and components, and 
      industrial cartridges.
    
    
      Pioneer Companies, Inc., based in Houston, manufactures chlorine, 
      caustic soda, bleach, hydrochloric acid and related products used in a 
      variety of applications, including water treatment, plastics, pulp and 
      paper, detergents, agricultural chemicals, pharmaceuticals and medical 
      disinfectants. Pioneer owns and operates four chlor-alkali plants and 
      several downstream manufacturing facilities in North America.
    
    
      FORWARD-LOOKING STATEMENTS
    
    
      This communication includes forward-looking statements. These statements 
      relate to analyses and other information that are based on management's 
      beliefs, certain assumptions made by management, forecasts of future 
      results, and current expectations, estimates and projections about the 
      markets and economy in which we and our various segments operate. The 
      statements contained in this communication that are not statements of 
      historical fact may include forward-looking statements that involve a 
      number of risks and uncertainties.
    
    
      We have used the words "anticipate," "intend," "may," "expect," 
      "believe," "should," "plan," "project," "estimate," and variations of 
      such words and similar expressions in this communication to identify 
      such forward-looking statements. These statements are not guarantees of 
      future performance and involve certain risks, uncertainties and 
      assumptions, which are difficult to predict and many of which are beyond 
      our control. Therefore, actual outcomes and results may differ 
      materially from those matters expressed or implied in such 
      forward-looking statements. We undertake no obligation to update 
      publicly any forward-looking statements, whether as a result of future 
      events, new information or otherwise.
    
    
      The risks, uncertainties and assumptions involved in our forward-looking 
      statements, many of which are discussed in more detail in our filings 
      with the SEC, including our Annual Report on Form 10-K for the year 
      ended December 31, 2006, include, but are not limited to, the following:
    
    
      
        the ability to obtain regulatory and Pioneer shareholder approval;
      
      
        the risk that the businesses will not be integrated successfully, or 
        will take longer than anticipated;
      
      
        the risk that the expected cost savings will not be achieved or 
        unexpected costs will be incurred;
      
      
        the risk that customer retention goals will not be met and that 
        disruptions from the transaction will harm relationships with 
        customers, employees and suppliers;
      
      
        sensitivity to economic, business and market conditions in the United 
        States and overseas, including economic instability or a downturn in 
        the sectors served by us, such as automotive, electronics, coinage, 
        telecommunications, ammunition, housing, vinyls and pulp and paper and 
        the migration by United States customers to low-cost foreign locations;
      
      
        the cyclical nature of our operating results, particularly declines in 
        average selling prices in the chlor alkali industry and the 
        supply/demand balance for our products, including the impact of excess 
        industry capacity or an imbalance in demand for our chlor alkali 
        products;
      
      
        economic and industry downturns that result in diminished product 
        demand and excess manufacturing capacity in any of our segments and 
        that, in many cases, result in lower selling prices and profits;
      
      
        the effects of any declines in global equity markets on asset values 
        and any declines in interest rates used to value the liabilities in 
        our pension plan;
      
      
        costs and other expenditures in excess of those projected for 
        environmental investigation and remediation or other legal proceedings;
      
      
        higher-than-expected raw material and energy or transportation and/or 
        logistics costs;
      
      
        the occurrence of unexpected manufacturing interruptions and outages, 
        including those occurring as a result of labor disruptions and 
        production hazards;
      
      
        unexpected litigation outcomes; and
      
      
        an increase in our indebtedness or higher-than-expected interest 
        rates, affecting our ability to generate sufficient cash flow for debt 
        service.
      
    
    
      All of our forward-looking statements should be considered in light of 
      these factors. In addition, other risks and uncertainties not presently 
      known to us or that we consider immaterial could affect the accuracy of 
      our forward-looking statements.
    
    
      Pioneer intends to file with the SEC a proxy statement and other related 
      documents regarding the proposed transaction described in this 
      communication. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THE 
      OTHER RELATED DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL 
      CONTAIN IMPORTANT INFORMATION ABOUT PIONEER, THE PROPOSED TRANSACTION 
      AND RELATED MATTERS. A definitive proxy statement will be sent to 
      security holders of Pioneer seeking their approval of the proposed 
      transaction. This communication is not a solicitation of a proxy from 
      any security holder of Pioneer. Investors will be able to obtain the 
      proxy statement and the other related documents (when they become 
      available) and other documents filed with the SEC free of charge at the 
      SEC’s website, www.sec.gov. 
      In addition, a copy of the proxy statement (when it becomes available) 
      may be obtained free of charge by directing a request to Pioneer 
      Corporate Office, 700 Louisiana Street, Suite 4300, Houston Texas, 
      77002, [phone] (phone), [phone] (fax), Attention: Gary 
      Pittman.
    
    
      Pioneer, its directors and executive officers and certain other persons 
      may be deemed to be participants in the solicitation of proxies in 
      respect of the proposed transaction. Such persons may have interests in 
      the proposed transaction, including as a result of holding options or 
      shares of Pioneer stock. Olin Corporation may also be deemed a 
      participant in such solicitation by virtue of its execution of the 
      merger agreement. Information regarding Pioneer's directors and 
      executive officers is available in the proxy statement filed with the 
      SEC by Pioneer on April 19, 2007. Information regarding Olin’s 
      directors and executive officers is available in the proxy statement 
      filed with the SEC by Olin on March 2, 2007. Other information regarding 
      the participants in the proxy solicitation and a description of their 
      direct and indirect interests, by security holdings or otherwise, will 
      be contained in the proxy statement and other relevant materials to be 
      filed with the SEC when they become available.