Pioneer Announces the Prepayment and Redemption of Certain Debt

Pioneer Announces the Prepayment and Redemption of Certain Debt



HOUSTON, July 11  /PRNewswire-FirstCall/ -- Pioneer Companies, Inc.
(NASDAQ:PONR) announced today that its subsidiary, Pioneer Americas LLC, will
be prepaying and redeeming all of the Senior Secured Floating Rate Guaranteed
Notes due 2006 and Senior Floating Rate Term Notes due 2006 that remain
outstanding.  The notes, which had an original aggregate principal amount of
$50 million, were issued on December 31, 2001.

Pioneer's voluntary redemption of the $6.1 million in Senior Secured Floating
Rate Guaranteed Notes due 2006 that is now outstanding will occur on the
redemption date of August 22, 2005, while the voluntary prepayment of the $0.8
million in Senior Floating Rate Term Notes due 2006 that is now outstanding
will occur on July 13, 2005.  The payments, which will also include interest
accrued to the indicated dates, will be made out of Pioneer's existing cash
reserves.

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 other downstream manufacturing facilities
in North America.

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 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/ 

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