Pioneer Announces Status on Meeting Internal Control Evaluation Requirements

Pioneer Announces Status on Meeting Internal Control Evaluation
Requirements 


HOUSTON, June 25  /PRNewswire-FirstCall/ -- Pioneer Companies, Inc. (OTC:PONR)
(BULLETIN BOARD: PONR)  today reported on its status in meeting the
requirements of Section 404 of the Sarbanes-Oxley Act, and noted issues that
are likely to arise if those requirements become applicable to the Company for
the year ending December 31, 2004.

The regulations that implement the provisions of Section 404 will require
Pioneer's management to evaluate the effectiveness, as of the end of each
fiscal year, of Pioneer's internal control over financial reporting.  Pioneer
will also be required to provide an attestation report of the Company's
independent public accountants on management's assessment of Pioneer's internal
control over financial reporting.

While Pioneer has taken some of the steps required to comply with the framework
that is necessary to evaluate the effectiveness of its internal control over
financial reporting, its plans have been to complete the compliance process
during 2005.   The evaluation will first be required in connection with the
audit of Pioneer's consolidated financial statements for the year ending
December 31, 2005, unless Pioneer becomes an "accelerated filer."  If Pioneer
becomes an accelerated filer, the evaluation will be required in connection
with Pioneer's consolidated financial statements for the year ending December
31, 2004.  The Company will be an accelerated filer if Pioneer has a market
capitalization of at least $75 million as of June 30, 2004.  Pioneer currently
believes it will be subject to the accelerated filing requirement if the
closing trading price of its Common Stock on June 30 is at least $7.48 per
share.  The closing trading price of the Common Stock on June 24, 2004, was
$7.50 per share, up $0.35 from the previous close.

"While our market capitalization at June 30 may exceed the threshold
established by the Securities and Exchange Commission, at this time we do not
believe that we have the time and personnel that will be necessary to establish
the procedures that are sufficient to evaluate the design of our internal
control over financial reporting and to test its operating effectiveness as
part of our assessment of the effectiveness of our controls. Nor do we believe
that we would be able to outsource the effort in order to comply," said Michael
Y. McGovern, Pioneer's President and Chief Executive Officer.  "Because
guidance on these issues is very limited, we are not currently able to evaluate
the impact on Pioneer of our inability to provide the required assessment,
based on a suitable framework, in connection with the filing of our annual
report on Form 10-K for the year ended December 31, 2004, if in fact we become
an accelerated filer.  We do anticipate being able to comply with the necessary
framework before the end of 2005, when, given the level of trading in our
Common Stock, we originally anticipated that the new requirements would apply
to us."

Pioneer, 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.  Additional information and press releases of
Pioneer Companies, Inc. can be obtained from the Company's Internet web site at
http://www.piona.com/ .

Certain statements in this news release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act.  Forward- looking
statements relate to matters that are not historical facts.  Such statements
involve risks and uncertainties, including, but not limited to, Pioneer's
ability to meet the requirements of the Sarbanes-Oxley Act, its ability to
successfully implement its organizational efficiency project and realize the
results that are expected, and other risks and uncertainties described in
Pioneer's filings with the Securities and Exchange Commission. Actual outcomes
may vary materially from those indicated by the forward- looking statements. 

DATASOURCE: Pioneer Companies, Inc.



CONTACT:  Kent Stephenson of Pioneer Companies, Inc., [phone]



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

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