Pioneer Announces a Delay in the Sale of Certain Real Property

HOUSTON, Oct. 4  /PRNewswire-FirstCall/ -- Pioneer Companies, Inc. (NASDAQ:PONR) announced that it has encountered unanticipated delays in the sale of certain real property adjacent to Pioneer's chlor-alkali manufacturing facility in Henderson, Nevada.  In June 2005 Pioneer's U.S. operating subsidiary, Pioneer Americas LLC, entered into an agreement to sell the approximately sixty acres of land to Marnell Properties, LLC.  The closing of the transaction is subject to the completion by Marnell Properties of due diligence and the satisfaction of other customary conditions to closing.

Marnell Properties' due diligence has been completed, but among the customary conditions that must be satisfied is the recording of a parcel map, after review by the Clark County Planning Commission.  The dynamic pace of land development in the Las Vegas Valley has led to delays in the review process, and Pioneer understands that necessary reviews will not be completed in order for the closing of the land sale to occur during 2005.  Pioneer now expects the sale to be completed during the first six months of 2006.

The $22.8 million in net proceeds from the land sale will be applied to an offer for the partial redemption of the 10% Senior Secured Guaranteed Notes due in 2008 and issued by Pioneer's Canadian operating subsidiary, PCI Chemicals Canada Company.  To the extent the redemption offer is not accepted, Pioneer will use the remaining net proceeds for general corporate purposes.

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 the United States and Canada.

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, the non-satisfaction of the conditions to closing the sale and the 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:  Gary Pittman of Pioneer Companies, Inc., [phone]



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

Copyright