Through continuous improvement, the
company's mission is to build long-term customer focused relationships.13
per share, in the third quarter of 2004.26 per share. Operating
income was $4. Sales to the pipe and fittings market, however,
demonstrated strong sequential growth.
These increases are necessary for OxyVinyls to restore product spreads and
profitability in the fourth quarter.

About PolyOne
PolyOne Corporation, with 2004 annual revenues of approximately
$2.8 $42.8 22.9
Loss (income) from equity affiliates
and minority interest 7.8 79.7)
Income (loss) before income taxes
and discontinued operations (20.3
Other non-current assets 58.8
Discontinued operations 0.0 shares
authorized, 122.4) (25.4) (62.7) (0.8 ) (3.9)

Impact on pre-tax income (16.3 1.25

Discontinued operations:
Income per share before impact of
special items $0.0 (1.1
Effect of exchange rate
changes on cash 1.1 2.6) (5.1)

Special items, income (expense) (27. These results include net
income of U. $3.2 million.23 $0. Cash
flow may not be calculated in a comparable manner to other companies.

ACETEX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(thousands of U. Diluted net earnings
(loss) per share is calculated by the treasury stock method.
Gross profit for the six months ended June 30, 2005, compared to the six
months ended June 30, 2004, increased by 36% or $6.34)
-------------------------------------------------------------------------
As restated .

shrinkage polyurethanes

The acquisition more than doubled SF Medical's
liquid silicone capacity. Operating cash flow* was a positive $48. The equity
earnings contribution from OxyVinyls and SunBelt Chlor-Alkali decreased in the
third quarter from its peak in the second quarter due to hurricane-related
production interruptions , decreased polyvinyl chloride (PVC) resin price
spreads due to higher ethylene costs, and significantly higher average natural
gas costs. Waltermire resigned as
president and chief executive officer and as a director.m.4) $37.21) $0.10
Before discontinued operations (0.6
Operating costs and expenses:
Cost of sales 511.4
Discontinued operations:
Income (loss) from operations, net
of income taxes 2.08
Basic and diluted earnings (loss)
per share $(0.40

Weighted average shares used to
compute earnings per share:
Basic 91.2 20.0 321.4 379.1
Income from discontinued operations 5.2) 39.9) (2.2 0.9) (5.0 (5.0)
Per share impact (0.
5.5

Discontinued operations:
Operating income before special
items $7.0 $6.0) -
Operating income (loss) $6.7) (29.65 $0. See note 2(a).03 $0.E.
Previously, these two expenses were netted against sales revenue.13 1,403,827 7.00 cash per share.7 million from
$159.6% to $7.

---------------------------------- ---------------------------------------
Q2/05 Q1/05 Q4/04 Q3/04
-------------------------------------------------------------------------
Sales 141,652 146,350 136,300 138,234
------------ -------------------------------------------------------------
Net earnings (loss) 3,557 4,504 (8,425) 837
--------------------------------------------------- ----------------------
Net earnings (loss) per share 0.

polyurethanes mechanically

It recently
acquired B&M, Inc.

PolyOne Reports Third-Quarter 2005 Results

5 million, or $(0. Just as importantly, we have achieved
these results under challenging conditions.1 million, a 6 percent
improvement over the same period in 2004. Shipment volume increased
2 percent, driven primarily by increased demand for commodity resins.5 million,
a decrease of $0.5 million from the same period in 2004.

Use of Non -GAAP Financial Measures
This earnings release includes the use of both GAAP (generally accepted
accounting principles) and non-GAAP financial measures.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, including those fluctuations related to the effects
of Hurricane Katrina and Hurricane Rita;
- 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 or inability to achieve targeted debt level reductions through
divestitures and/or other means;
- an inability to access the revolving credit facility and/or the
receivables sale facility as a result of breaching covenants due to not
achieving 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 platforms to
profitability;
- an inability to raise prices or sustain price increases for products;
- adverse changes in our relations with customers;
- an inability to maintain appropriate relations with unions and
employees in certain locations in order to avoid disruptions of
business;
- an inability or delay beyond December 31, 2005 in finding buyers of
discontinued operations or other non-core assets for reasonable and
acceptable terms;
- an inability to achieve anticipated earnings performance due to the
divestment of a non-core business;
- an inability to complete the sale of discontinued businesses, including
the Engineered Films unit, due to problems or delays associated with
legal proceedings , regulatory approvals, buyers receiving financing for
the transaction, satisfactory completion of due diligence, finalization
of definitive agreements or any other reasons; and
- other factors affecting our business beyond our control, including,
without limitation, changes in the general economy, changes in interest
rates and changes in the rate of inflation .
Income or loss from discontinued operations is reported below operating income
- continuing operations on the income statement.7 136.1 91.2 $37.8 33.5) (6.02) (0.1 90.7)
Increase (Decrease) in
borrowed debt less cash
and cash equivalents $48.4
Operating income (loss)
Performance Plastics Segment $10.S.05
Exercised (3,333) (2.60 - $5.4 million.

Gross Profit

Gross profit for the three months ended June 30, 2005, compared to the
three months ended June 30, 2004, increased by 13% or $1.

A Polymer is a large molecule built up by the repetition of small, simple chemical units.

thermosets pdfs

7 million, a 4.

Polymer Coating Systems (Formulators) - Sales and shipment volume each
decreased 9 percent compared with the second quarter.1 million compared with the second quarter, due largely to a $22.9 million
non-cash pre-tax charge related to the impairment of a previously idled chor-
alkali facility at OxyVinyls.
"We cannot stand by and watch our product spreads decline in this
environment," said Patient. Debt reduction is anticipated to
remain the primary use for positive operating cash flows and any proceeds from
divestments.

Third -quarter 2005 Earnings Conference Call and Webcast
PolyOne will host a conference call at 9:00 a. The
replay number is 800-642-1687 (domestic) or 706-645-9291 (international). The non-GAAP
financial measures are: operating cash flow, operating income (loss) before
special items and per share impact of special items.

We cannot guarantee that any forward-looking statement will be realized ,
although we believe we have been prudent in our plans and assumptions.6
Income (loss) from discontinued
operations 2.2) 8.2 - 5.5)
Income (loss) before discontinued
operations (21.9 34.7
Property, net 405.1 12.2
Total shareholders' equity 398.4
Total liabilities and shareholders ' equity $1,758.3 7.5)
Cash payments on employee separation and plant
phaseout (2.6)
FIFO inventories (2.7)
Accounts payable 19 .7)
Accrued expenses and other (18.4 0.06 0. A non-cash impairment charge to adjust the net asset carrying value of
Engineered Films to estimated net future proceeds.3) (0.6 $ 31.8 $(6.4
Net cash provided (used)
by investing activities
of continuing operations 1.6 (20.2 (1.4)
Guarantee of SunBelt
outstanding senior
secured notes - - - -
Other financing activity 1.
Information in this press release including the attached interim report
to shareholders may contain forward-looking statements.23 $0.29 $0.S. Under this method, the
Company recognizes its proportionate share of cumulative post
acquisition income or losses and capital distributions of Erfei
as they are realized.

Also during 2004, the Company retroactively restated its
consolidated statements of operations to classify foreign
exchange impacts on working capital as foreign exchange
losses/gains.15)
Granted 100,000 6.66
--------------------------------- --------------------------------

Outstanding, March 31, 2005 3,066,778 6. The European
contract price for methanol was Euros 200 in the second quarter of 2004 and
increased to Euros 230 in the second quarter of 2005.4 million from $6.1 million for the comparable period in
2004. The change in operating income was primarily due to expanding margins
more than offsetting reduced volumes.2 million pounds or 11.8%, on
25.

macrogalleria polyurethanes

In continuing operations, the most
significant special items were a pre-tax $22.9 million lower than the second-quarter 2005 level, primarily
because of lower product spreads (selling price less raw material costs). Shipments were up in almost all
market segments with the exception of pipe fittings, where customers made
significant inventory adjustments. The main factor
in this improvement was higher SunBelt profitability , due largely to higher
selling prices for chlorine and caustic soda. Each of the North
American businesses has announced price increases to restore spreads to
acceptable levels at the start of 2006.34
Income (loss) before discontinued
operations (0.5 (1.5) (2.8) 11.27 $0.3 616.1 0.4) (13.5
Business acquired, net of cash received (2.4 31.4
Per share impact (0.0) - (0.3)

Impact on net income from
discontinued operations (7.
3.19
Per share impact of special items,
after tax (0. In addition, operating income before the
effect of "special items" is a component of the PolyOne Annual Incentive Plan
at the corporate level and is used in debt covenant computations .9

Special items, expense
before tax (0. Sales for the same period were U.09
Exercised (4,083) (2.S .4 million from $3.3 million.

photopolymer monomer

SF Medical, a wholly owned division of
Chase-Walton Elastomers , a leading designer, developer and fabricator of
silicone elastomer components, announced that it has named Paul Cathcart
manager of Operations.4 million for the first
nine months of 2005.9 percent of sales compared with 9. Europe continues to experience general economic
softness. The sales and volume declines in the third
quarter and the nine-month period were due primarily to reduced
automotive demand in toll compounding. Third-quarter operating income before special
items * declined $15.2 million compared with the second quarter. In
order to restore product spreads (selling price less raw material cost) in
reaction to this cost inflation, the Company is raising selling prices within
the Performance Plastics and Distribution segments. In contrast, SunBelt should benefit from
stable chlorine prices and from caustic soda market price increases.polyone.com.4 2.7
Loss on sale of assets - 0.4 1.3) 14.3 7.3) (1.8
Deferred income taxes 1.9
Change in long-term debt (20.04) 0.5
Tax allowance (5) 2.4 (9.4 )

Per share impact (0.10 (0.29) (0.2 $32.5

Other data:
Discontinued operations
Sales:
Elastomers and Performance
Additives $- $30.1 68.
For the six months ended June 30, 2005, net income was U.44
Cash position at end
of period 52 ,511 57,216 52,511 57,216

EBITDA(1)

Acetyls Segment 12,657 11,706 29,050 22,649
Specialty Polymers +
Films 6,139 4,769 10,727 8,517
Corporate (1,023) (1,095) (1,616) (2,069)
--------------------------------- ------------------
17,773 15,380 38,161 29,097
---------------------------------------------------
---------------------------------------------------

------------------------------ -------------------------------------------
Long-term debt at end
of period 265,000 265,000 265,000 265,000
---------------------------------------- ---------------------------------
(1) Operating income plus amortization and restructuring charge , both as
stated on the consolidated statements of operations.28
$8.4% or $4.3% compared to the same period last year, however, volumes
decreased 22.3 million.

The repeat unit is usually equivalent to the monomer - the starting material from which the polymer is formed.

thermoplastics monomer

"The opportunities for SF Medical in the bio-pharmaceutical and medical
markets are exceptional. Nine-month
sales declined 2 percent and shipments decreased 10 percent compared with
the same period in 2004.

Resin and Intermediates segment: Third-quarter operating income declined
$38.

Fourth-quarter 2005 Business Outlook
In addition to a normal seasonally slower fourth quarter, PolyOne
anticipates it could be negatively impacted by rapidly escalating raw material
costs, particularly from suppliers affected by the recent hurricanes.2 billion, is a leading global compounding and North American distribution
company with continuing operations in thermoplastic compounds, specialty
polymer formulations, color and additive systems, and thermoplastic resin
distribution.08) 0.3 million in revenues
from the Elastomers and Performance Additives business that was sold in August
2004.0 $552.5 38.0) (18.9 29.03 - 0.3
Accounts payable 224.4
Post-retirement benefits other than pensions 106.0
Increase (decrease) in sale of accounts
receivable 20.04) 0.9 $426.0
Resin + Intermediates Segment 13.7 million were
generated during the period from the sale of acetyls and specialty polymers
and films. It has two principal
businesses.

2.
("Erfei"), a company subject to significant influence, is
accounted for by the equity method. Previously, the amounts recovered had been offset
against revenues.23)
-----------------------------------------------------------------

Outstanding , March 31, 2004 3,500,900 8.50 - $8.
The Specialty Polymers and Films Business develops and manufactures specialty
plastic resins and film products for a number of niche end-markets primarily
in North America. The increase in gross profit was primarily
due to the increase of the average product selling prices.5%.3 million from $6.

Capital Expenditures

Capital expenditures during the six months ended June 30, 2005, totaled
$5.

elastomers polymeric

PRESS RELEASE SF Medical Names Paul Cathcart Manager of Operations

SF Medical offers a full line of products in silicone , PTFE, food-grade
rubber and other materials for a wide range of industries. William F. Due to cost increases experienced at
the beginning of the quarter within the Performance Plastics segment , however,
fourth-quarter product spreads are anticipated to decline compared with the
third quarter .

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. 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.3
Income (loss ) before discontinued
operations - after tax (21.7

Earnings (loss) per share - diluted:
Net income (loss) - total Company $(0.06
Discontinued operations (0.04

Other data:
Sales - discontinued operations * $63.4 $68.2 $1,739.9 46.5)
Environmental remediation at
inactive sites 2.4) 37.1) (3.2) (6.3 $38.4
Shareholders' equity:
Preferred stock, 40.

9 Months
Ended
Sept. 30,
Special items 2005 3Q05 3Q04 2Q05 1Q05

Continuing operations
Employee separation and plant
phase-out costs (1) (2.3) (0.6 4.2) 3.4 (2.1 $8.S. Our Acetyls business
is Europe's second largest producer of acetic acid and polyvinyl alcohol and
third largest producer of vinyl acetate monomer.S. dollars)
(unaudited)

Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
------------ ------------ ------------ ----- -------
Cash provided by
(used for):
Operations:
Net earnings (loss)
for the period $3,557 $1,093 $8,061 $449
Charges and credits
to income not
involving cash:
Amortization 7,033 7 ,159 14,767 14,692
Pension expense
(recovery) 110 111 224 225
Amortization of
deferred financing
costs 483 456 982 930
Amortization of
bond premium (297) (297) (594) (594)
Unrealized foreign
exchange (gain)
loss (324) (255) (405 ) (429)
Distributions
received from
equity investee in
excess of income (271) (410) (397) (225)
Changes in noncash
operating working
capital (6,355) (1,313) (26,258) (3,450)
------------ ------------ ------------ ------------
3,936 6,544 (3,620) 11,598
-- ---------- ------------ ------------ ------------
Investments:
Purchase of property,
plant and equipment (2,083) (2,142) (5,261) (4,113)
Other (1,464) (404) (4,410) (674)
-------- ---- ------------ ------------ ------------
(3,547) (2,546) (9,671) (4,787)
------------ ------------ ------------ ------- -----
Financing:
Increase in share
capital 4,270 8 4,795 15
Increase (decrease)
in long-term debt 4,534 (3,206) 5,000 (1,807)
Increase (decrease)
in pension
obligation (599) (69) (992) 27
------------ ------------ ------------ ------------
8,205 (3 ,267) 8,803 (1,765)
------------ ------------ ------------ ------------
Foreign exchange gain
(loss) on cash and
cash equivalents
held in foreign
currencies (3,099) 207 (5,771) (1,733)
------------ ------------ ------------ ------------
Increase (decrease )
in cash and cash
equivalents 5,495 938 (10,259) 3,313
Cash and cash
equivalents,
beginning of period 47,016 56,278 62,770 53,903
------------ ------------ ------------ ----- -------
Cash and cash
equivalents,
end of period $52,511 $57,216 $52,511 $57,216
-------------------------------------------- -------
---------------------------------------------------

See accompanying notes to interim consolidated financial statements. Stock options are granted having
exercise prices that are determined by reference to market prices
at the date of grant.95
Exercised (112,500) 5.78
$5.7%. Films volumes were down 12.03 (0.

dendritic polyurethanes

21) per share, in
the third quarter of 2005, compared with net income of $11.6 million, or $0.
Operating income, however, declined to $36. Third-quarter shipment volume decreased
1 percent versus the second quarter, driven primarily by seasonality
(summer holiday period). Nine-month shipments increased 3
percent over the comparable period in 2004 due to new customer gains in
construction material applications and contract tolling. Operating income was $4.2 million over the previous quarter, driven by higher volumes and lower
overhead costs.
Cash interest paid, consistent with scheduled payments, will be substantially
greater than in the third quarter of 2005. Consequently, you should not consider
any list to be a complete set of all potential risks or uncertainties.5
Net income - total Company $(19.25
Income from discontinued operations 0.1
Depreciation and amortization 13.7 469.24) $0.9 91.4 196.9 57.1
Total liabilities 1,360.9) (60.1 (70.5) (27.0 0.5

Impact on net income from
continuing operations (16.6) (1.1) (4.9 (0 . Environmental remediation costs for facilities either no longer owned
or closed in prior years.09

Nine Months
Three Months Ended Ended
September September June 30, September 30,
30, 2005 30, 2004 2005 2005
(in millions)
Reconciliation to Condensed
Consolidated Statements of
Cash Flows
Net cash provided (used)
by operating activities of
continuing operations $19.5 23.4 $15.0 3.
Specialty polymers developed and manufactured by Acetex are used in the
manufacture of a variety of plastics products, including packaging and
laminating products, auto parts, adhesives and medical products .com. The Acetyls Business consists of the production of
acetic acid and its derivatives from production facilities in
France and Spain and their distribution and sale primarily in
Europe.I.

During 2004, the Company retroactively restated its consolidated
statements of operations to present freight and handling costs in
cost of sales. This change in classification had no impact on
operating earnings and net earnings (loss).55
-----------------------------------------------------------------

Outstanding, June 30, 2004 3,646,817 7.79 430,069 2.7 million. Industry newsletters indicate that pricing for the
second quarter of 2005 measured in Euros compared to the second quarter of
2004 increased by 10% for VAM and 14% for acetic acid.5 million .8% versus last year demonstrating the continued success of our targeted
marketing program.8% versus last year.

Acetex Corporation Consolidated

Liquidity and Capital Resources

Cash provided by operations (prior to changes in noncash working capital)
for the three months ended June 30, 2005, was $10.

polyurethanes pdfs

Cathcart is leading the company's strategic plan of
extending its reach to become a leading provider of quality silicone
products in the bio-pharmaceutical and medical markets. The company is already an industry leader and as
we continue to implement Lean Manufacturing methods throughout the
organization, we can take even further advantage of our reputation to
significantly grow the business," Cathcart said.27 per share, from $37.

International Color and Engineered Materials - Sales were down 5 percent
from the second quarter.S. The
conference ID for the replay is 9932167.5 12.1 1,529.2 1,377.6 (20.2) 5.8 640.01 par, 400.9)
Charges on environmental remediation at inactive
sites 2.5 55.3 $114.4) - (11.26) (0.08) 0.1 $8.13 $0.5 19.4)
Operating income $(1.1 $8., Sales $, Lbs. $141.
Acetex Corporation has two primary businesses - its European Acetyls
Business and the Specialty Polymers and Films Business. dollars except per share data)
(unaudited )

Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------

Sales $141,652 $129,179 $288,002 $257,130

Cost of goods sold 116,158 106,774 234,966 214,160
Amortization 7,033 7 ,159 14,767 14,692
------------ ------------ ------------ - -----------
123,191 113,933 249,733 228,852
------------ ------------ ------------ ------------

Gross profit 18,461 15,246 38,269 28,278
Other operating
expenses:
Selling, general and
administrative 6,828 6,078 13,116 11 ,916
Research and
development 893 947 1,759 1 ,957
------------ ------------ ------------ ------------
7,721 7,025 14,875 13,873
----- ------- ------------ ------------ ------------

Operating earnings 10,740 8 ,221 23,394 14,405
Other earnings
(expense):
Equity income (loss) 279 410 398 225
Interest expense (7,782) (7 ,560) (15,444) (15,492)
Transaction expense (891) - (2,510) -
Foreign exchange gain
(loss) 1,489 22 2,764 1,311
------------ ------------ ------------ ----------- -
(6,905) (7,128) (14,792) (13,956)
------------ ------------ ------------ ------------
Income (loss) before
income taxes 3,835 1,093 8,602 449
Income taxes 278 - 541 -
------------ ------------ ------------ ------------
Income (loss) for the
period 3,557 1,093 8,061 449
Deficit, beginning of
period (33 ,334) (31,343) (37,838) (30,699)
------------ ------------ ------------ ------------
Deficit, end of period $(29,777) $(30,250) $(29,777) $(30 ,250)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Income (Loss) per
common share
Basic $0.23 $0.

The consolidated financial statements have been prepared from the
books and records without audit; however , in the opinion of
management, all adjustments which are necessary to the fair
presentation of the results of the interim period have been made.98
Exercised (416,650) (5. The
Company's option and warrant holders are eligible to receive
CDN $9.

Operating Earnings

Operating earnings for the three months ended June 30, 2005, increased by
$1.

Specialty Polymers and Films Business

Sales

For the three months ended June 30, 2005, compared to the three months
ended June 30, 2004, sales increased by 8.2 million or 37.2 million, while operating
earnings for the six months ended June 30, 2005 increased $2.3 million. Capital expenditures, consisting mainly of plant maintenance
related issues, were $1. Total expenditures for Acetyls were $3.

polyurethanes spe

in plastics engineering from the University of
Massachusetts, Lowell.
Chase-Walton maintains consistently high finished product quality levels as
approved, certified and registered to ISO 9001 standards , national
standards ANSI/ASQC Q9002-1994, SAE AS9000 1997-05, 14 CFR Part 21.7 percent for the first nine months of
2004.

(* A discussion of special items occurs in Attachment 5. The Company
also announced that the search for a successor would begin immediately, with
completion anticipated by early 2006. 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. 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. You should understand that it is not possible to
predict or identify all risk factors.3 (0.0
Other expense, net (2.6 $2.5 (1.0)
Return of cash from equity affiliates - 0.0
Cash and cash equivalents at beginning of period 38.7
Cash and cash equivalents at end of period $47.2)
Asset impairments (2 ) (0.04 (0.3) (7.1 $42.4) $37.9
Special items in discontinued
operations, before tax (0.4) 1.4

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.9 $448.2 4.4) $37.
$288 million.S.01
Diluted $0.

Except as noted as above, these interim consolidated financial
statements have been prepared on a basis consistent with, and
should be read in conjunction with, the annual consolidated
financial statements included in the Company's 2004 Annual
Information Form. GAAP earnings are equivalent. The Company's results of operations are affected by a
variety of factors, including variations in the pricing of acetic acid, VAM,
and polyethylene and in the cost of its principal feedstocks, methanol,
natural gas, and ethylene. This increase resulted from an increase in average product
selling prices of 17% from 2004 to 2005 offset by a decrease in sales volumes
of 3%. Industry newsletters indicate that pricing for the first half of 2005
measured in Euros compared to the first half of 2004 increased by 11% for VAM
and 13% for acetic acid.7 million
from $16.4 million to $17.5% higher average selling
prices. Specialty volume continued to improve with an increase of
10.

Gross Profit

Gross profit for the three months ended June 30, 2005, compared to the
three months ended June 30, 2004 increased by 31.6 million.

mechanically polyurethanes

S.)

In the first nine months of 2005, selling and administrative costs were
7.8 million, a
1 percent decrease from the second quarter, due in part to lower average
selling prices across all product segments.)

CEO Resignation
On October 7, PolyOne announced that Thomas A.

Headquartered in northeast Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America and South America.4

Operating income (loss) - continuing
operations $(1.3
Selling and administrative 42.4
Interest expense (17.8 19.0 91.0
Other intangible assets, net 12.9
Companies carried at equity and minority interest:
Income from equity affiliates and minority
interest (50.1
Net cash used by financing activities of continuing
operations (15.6 48.2) - - -
Environmental remediation at
inactive sites (3) (2.2)
Income tax benefit on above
items 10.29) (0.4) - (10.8) (0.

3Q05 3Q04 2Q05
Continuing operations:
Operating income before special
items $26.5) - -
Plus business acquired,
net of cash received - - 1.6
Distribution Segment 168.6 $28.1
$63.6 million and EBITDA (defined as operating income plus
amortization ) of U.S.1 million
and EBITDA was U. They include actions of competitors, conditions in the
acetyls and other industries, worldwide economic conditions, and risks
attendant with acetyls and specialty polymers and films production and
distribution. This reclassification has no impact on net
earnings (loss).

During 2005, the Company retroactively restated its consolidated
statements of operations to present commission expenses in
selling, general and administrative expenses and
warranty/quality claim expenses in cost of goods sold . Exercise prices presented in the
table below are expressed in Canadian dollars.81

The following table summarizes information about stock options
exercisable and outstanding at June 30, 2005:

---------------------------------------------- -------------------
Options outstanding Options exercisable
--------------------------------------- -------------------------
Weighted Weighted
average average
Range of exercise exercise
exercise price Exercisable price
Prices Number (CDN$) number (CDN$)
------- ----------------------------------------------------------

$2. This approval was the remaining regulatory
permission required by the parties who had signed the agreement on
October 27, 2004.8 million
from $76.
For the six months ended June 30, 2005, compared to the six months ended
June 30, 2004, sales increased by 8.0 million to
$8.
Gross profit for the six months ended June 30, 2005, compared to the six
months ended June 30, 2004 increased by 35.0 million to $15.

Polypropylene, polyethylene and suchlike are thermoplastics, while most elastomers as well as hard plastics like Bakelite are thermosets.

thermoplastics macrogalleria

He's an active member of the Society of Plastics
Engineers (SPE).
Net cash provided by operating activities was $12. Year-to-date sales improved 3 percent
due to increases in product selling prices, even as volume declined
5 percent compared with the same period in 2004.

North American Engineered Materials - Sales declined 6 percent and
shipment volume declined 5 percent from the second quarter. The 2 cents-per-
pound increase in September was not sufficient to overcome the rise in the
cost of energy and related raw materials that began early in August.

Attachment 2
PolyOne Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004

Sales $579.5) (46.1 263.9 59.7
Accrued expenses 93.0 26 .0 shares authorized, no
shares issued - -
Common stock, $.9) (7.6)
Income tax benefit on above
items 6.8) (4.05)

Explanations:
1.06
Diluted income per share $(0.7 0.5 (0.2 $139.8 154.7 170 .5
Other Segment (1.9) (7. $38. Significant accounting policies:

(a) Basis of presentation:

The consolidated financial statements of Acetex Corporation (the
"Company") have been prepared in accordance with generally
accepted accounting principles in Canada. Stock options vest and become exercisable
as to 50% on the first anniversary and as to 25% each on the
second and third anniversary of grant.

Acetex Corporation

Management's Discussion and Analysis of Financial Condition and Results
of Operations
(all references in U.

Acetyls Business

Sales

For the three months ended June 30, 2005 compared to the three months
ended June 30, 2004 sales increased by 11% or $8.0 million pounds or 13.3 million compared to
$7.10 0.25) 0.

elastomer thermosets

2 million.
The Company recorded a net loss of $19.
"Despite the effects of two hurricanes and significant increases in energy
and raw material costs, we posted strong cash generation this quarter," said
David Wilson, chief financial officer.
Following are product line highlights from within the Performance Plastics
segment:

Vinyl Compounds - Sales improved 8 percent while shipment volume was up
7 percent versus the second quarter . Shipments in other construction-
related product lines increased due to new business closes combined with
slightly higher market demand. Currency exchange accounted for 2 percentage
points of this decline.

Pending Sale of Engineered Films Business
PolyOne announced on September 27, 2005, that it had signed a letter of
intent to sell its Engineered Films business unit to an investor group
comprising members of the unit's management team, along with an investor group
formed by Matrix Capital Markets. The Company expects cash receipts from equity affiliates to
be lower, consistent with lower earnings expectations.
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 on special items (Attachment 5).

3Q05 3Q04* 2Q05
Operating results:
Sales - continuing operations $579.8) 11.13 $0.02) (0.6
Employee separation and plant
phaseout 1.3) 2.9 7.7

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

Attachment 3
PolyOne Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In millions , except per share data)

September 30, December 31,
2005 2004
Assets
Current assets:
Cash and cash equivalents $47.6
Accounts receivable, net 336.0
Deferred income tax assets 20.2 shares issued at September
30, 2005 and December 31, 2004 1.5) (46.8
Net cash provided (used) by operating
activities of continuing operations 12.4)
Termination of interest rate swaps - (0.8

Effect of exchange rate changes on cash (0.4)

Increase in cash and cash equivalents 8.1
Tax allowance (5) 1.3) (0.4 $5.05
Per share impact of special items,
after tax (0.1) $12.1) (10.7)
Less (increase) decrease
in sale of accounts
receivable 18.1
Interest rate swap fair
value debt adjustment 0.1 $26.3 $8.3) (0.3 $-
Specialty Resins and
Engineered Films 63.2 8.S. The films
business focuses on products for the agricultural, horticultural and
construction industries. This is not a term that has an established
meaning under generally accepted accounting principles and should not
be considered in isolation from net earnings (loss) or other amounts
as calculated under generally accepted accounting principles.23 $0. The Company's 45% interest in Erfei A.3 million to $181. Overall Polymers selling prices increased by 25.
In addition, $4.

Plastics are one type of polymer These can be broken down into thermoplastics which can repeatedly follow a melt -freeze cycle, and thermosets, which set, or cure once during an irreversible chemical process during the manufacturing phase.

shrinkage elastomer

31 per share.
Additionally, PolyOne has improved its working capital through reductions in
its accounts receivable, days sales outstanding (DSO) and days sales in
inventory (DSI) metrics.40 per share, in
the first nine months of 2004. Operating income was $13. 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.0 $552.0 26.6 441.3
Goodwill, net 322.9
Total assets $1,758 .1 102.3
Discontinued operations 29.5
Deferred income tax liabilities 9.8 114.6
Minority interest in consolidated subsidiaries 5.3 1,391.7
Income from continuing operations 19.3) (18.3 (0.4) - -
Loss on the sale of Melos - - (0.6) 1.18 ) (0.5 - 4.05 $0.1)
Plus net cash provided
(used) by discontinued
operations 6.4) (35.3 18.9) (5.6) (1.9

Attachment 8
Sales and Shipment Volume Summary

3Q05 versus 2Q05 3Q05 versus 3Q04
Shipment Shipment
3Q05 Sales, Sales $, Lbs.S.S.

ACETEX CORPORATION

Financial and Operating Highlights
Selected Financial Information
(thousands of U. dollars except per share)
(unaudited)

Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004

Sales $141,652 $129,179(3) $288,002 $257 ,130(3)
Net earnings (loss)
for the period 3,557 1,093 8,061 449
Net earnings (loss)
per share $0.10 $0.
(3) As restated.49 440,069 2.00 cash, less the exercise price for each option or warrant.

Celanese announced it expects to close the transaction on or about
July 20 , 2005.S. The European contract price
for methanol increased by Euros 35 from the first half of 2004 to the first
half of 2005.6 million from $11.4 million to $56. For the six months
ended June 30 , 2005, cash provided by operations (prior to changes in noncash
working capital) was $22. See note 2(a).

tearing fromed

"His industry knowledge coupled with his expertise in implementing Lean
Manufacturing methods will enhance SF Medical's ability to be an even more
aggressive contender in these rapidly growing markets. This decline was due primarily to
lower income contribution from the Resin and Intermediates segment resulting
principally from a combination of a non-cash charge related to the idling of
certain production assets, hurricane-related production interruptions, and
significant increases in raw material and energy costs.9 million non-cash charge related
to the impairment of a previously idled chlor -alkali facility at Oxy Vinyls,
LP and a $2. "In the last year, our teams
throughout the Company have delivered continuous and improved control and
management of our working capital.
For the first nine months of 2005 sales were $1,739.
Higher raw material costs offset improved demand and higher selling prices.
International sales in the first nine months of 2005 were up 2 percent
versus the comparable period in 2004, while volume declined 15 percent.

Distribution segment: Sales in the third quarter were $168. The call will be broadcast live and
then via replay for two weeks on the Company's Web site at http://www. You can identify these
statements by the fact that they do not relate strictly to historic or current
facts.
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; financial results; and the anticipated sale of the
Engineered Films unit.
Achievement of future results is subject to risks, uncertainties and
inaccurate assumptions .
We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise.03 - 0.09
Total per share impact of special items (1)
- after tax: (0.29) (0.04) 0.3 38.8)
Interest income 0.7 6.9 $1,771.4
Change in assets and liabilities:
Accounts receivable (53 .9
Proceeds from sale of discontinued business, net - 101.1)
Proceeds from sale of assets 15.2 20.1 24.0 3.8 4.0) - (0.2 $25.7
Operating cash flow $48.2 $583.1
Operating income
Elastomers and Performance
Additives $- $2.8 million .
For further information contact: Lynn Haycock (604) 688-9600 or via e-
mail at haycock@acetex . The Company has calculated
EBITDA consistently for all periods presented. dollars)
(unaudited)

ASSETS June 30, December
2005 31 , 2004
------------ ------------
(unaudited)
Current assets:
Cash and cash equivalents $52,511 $62,770
Accounts receivable 94,548 99,738
Inventory 77 ,658 63,619
Prepaid expenses and other 9,127 5,339
------------ ------------
233,844 231,466

Property, plant and equipment 227,444 249,132

Other assets 18,471 15,167
------------ ------ ------
$479,759 $495,765
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued liabilities $99,770 $109 ,196

Pension obligation 25,299 27,389

Revolving credit facility 26,411 21,411

Senior unsecured debt 265,000 265,000
------------ ------------
416,480 422,996
------------ ------------
Shareholders ' equity
Share capital 109,818 105,023
Additional paid-in capital 1,547 1,547
Deficit (29,776) (37,838)
Cumulative translation adjustment (18,310) 4,037
------------ ---------- --
63,279 72,769
------------ ------------
$479,759 $495,765
- ----------- ------------
------------ ------- -----

See accompanying notes to interim consolidated financial statements.

ACETEX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOW
(thousands of U. dollars,
except per share amounts)
(unaudited)

Three and Six months ended June 30, 2005 and 2004

1. The Specialty Polymers and Films Business develops and
manufactures specialty plastic resins and film products for a
number of niche markets in North America and around the world
from a manufacturing facility in Edmonton , Alberta. They include the
accounts of Acetex Corporation and its subsidiaries, all of which
are wholly owned. All material intercompany balances and
transactions have been eliminated. Stock options expire
10 years from the date of grant.61)
Granted 150,000 5.00 1,628,827 7.S. funds )

Acetex Corporation (the "Company") operates two businesses, the Acetyls
Business and the Specialty Polymers and Films Business.
For the six months ended June 30, 2005, compared to the six months ended
June 30, 2004 sales increased by 14% or $22.0 million. Operating income for the six months ended June 30, 2005, increased by
$6. Polymers specialty volumes increased by 5.3 million pounds
or 12.2 million from
$97.

Operating Earnings

Operating earnings for the three months ended June 30, 2005 increased
$1.

Repetition can be linear, branched, cross -linked or dendritic.

photopolymer macrogalleria

Sales
and shipment trends within Distribution appear consistent with overall U. Eastern time on Friday,
October 28, 2005.4

* Third-quarter 2004 discontinued sales included $30.1)
Operating income (loss) (1.7
Net income (loss) $(19.22 $0.5
Diluted 92.6
Total current assets 648.2
Investment in equity affiliates 267.3
Total current liabilities 383.0
Other non-current liabilities, including
pensions 216.9 29.0 )
Depreciation and amortization 38.4) (0.5) (26. A non-cash impairment charge to adjust the carrying value of an
investment to fair market value.5 $45.

3Q05 3Q04 2Q05
Business Segments:
Sales:
Performance Plastics Segment $449.9 $-
Specialty Resins and Engineered
Films 7.4 $5. By their nature, such
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those contemplated by the forward-
looking statements.
Acetex directs its operations from its corporate head office in
Vancouver, Canada.S. dollars)
(unaudited)

Specialty
Three months ended Polymers
June 30, 2004 Acetyls and Films Corporate Total
------------ ------------ ------------ ------------

Sales $76,658 $52,521 - $129,179

Cost of goods sold and
operating expenses 64,952 47,752 1,095 113,799
Amortization 5,586 1,559 14 7,159
---------- -- ------------ ------------ ------------
70,538 49,311 1,109 120,958
------------ ------------ ------------ ---------- --

Operating earnings $6,120 $3,210 $(1,109) 8,221
------------ ------------ ------------
------------ --- --------- ------------

Interest expense (7,560)
Equity income (loss) 410
Foreign exchange gain
(loss) and other 22
Income taxes -
------------
Net earnings (loss) $1,093
------------
------------

Six months ended
June 30, 2004

Sales $159,426 $97,704 - $257,130

Cost of goods sold and
operating expenses 136,777 89,187 2,069 228,033
Amortization 11,460 3,196 36 14,692
------------ ------------ ------------ ----- -------
148,237 92,383 2,105 242,725
------------ ------------ ------------ ------------

Operating earnings $11,189 $5,321 $(2,105) 14,405
------------ ----- ------- ------------
------------ ------------ ------------

Interest expense (15,492)
Equity income (loss) 225
Foreign exchange gain
(loss) and other 1,311
Income taxes -
------------
Net earnings (loss) $449
------------
------------

As at June 30, 2004

Total assets $253,430 $206,506 $7,156 $467,092
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

ACETEX CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(tabular dollar amounts expressed in thousands of U.
Under the treasury stock method, the weighted average number of
common shares outstanding for the calculation of diluted net
earnings (loss ) per share assumes that the proceeds to be
received on the exercise of dilutive stock options are applied to
repurchase common shares at the average market price for the
period.18
--------------------------------------------------------------- --

Outstanding, June 30, 2005 2,199,434 $6.7 million.9 million
from $52. The continued profit improvement was due to improved
margins, but offset by the strength of the Canadian dollar.

elastomers spe

Special items for continuing and discontinued operations reduced third-
quarter net income $0."
Shipment volume for continuing operations declined 2 percent in the 2005
third quarter compared with the third quarter of 2004.2 million, or $0.1 million, or $0.
For the year to date, sales increased to $1,347. Year to date, Vinyl Compounds sales increased
5 percent and shipment volume decreased 6 percent compared with the same
period in 2004 . Almost all of the decline was attributable to
Engineered Materials. The transaction is expected to close in the
fourth quarter of 2005, subject to a number of closing conditions. The conference dial-in number is 888-489-0038 (domestic) or
706-643-1611 (international), conference topic: PolyOne Earnings Call.13 0.

(1) A definition and a list of special items appear in Attachment 5.1 $1,645.2) (50.7 210.4
Current portion of long-term debt 29.0 391.4 (11.7) 116.9) (22.10)

Total

Impact on net income (24.

Attachment 6
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions)

Below is a reconciliation of non-GAAP financial measures to the most
directly comparable measures calculated and presented in accordance with GAAP.1 20.8) 12.4 0.2 $5.2
Intersegment eliminations (39.0 $552. Net sales of U.03 $0.S.S.

(c) Net earnings (loss) per common share:

Basic net earnings (loss) per share is calculated by dividing net
earnings (loss) available to common shareholders by the weighted
average number of common shares outstanding in the period.35 130 ,538 16. Subsequent Event:

On July 13, 2005, Celanese Corporation and the Company announced that
the European Commission provided unconditional approval for Celanese
to acquire the Company. The Acetyls Business
derives its revenues from the merchant market sales in Europe of its two
principal products, acetic acid and vinyl acetate monomer ("VAM"), as well as
from merchant market sales of acetic derivatives, including polyvinyl alcohol.3 million pounds
or 11.7% higher average selling prices.0% or $4.6 million
from $11.

Summary of Quarterly Results

The selected financial information set out below includes the results of
operations of the Specialty Polymers and Films segment from August 5, 2003.23) (0.

curable polymeric

- Sales increase, but income declines as rising energy and raw material
costs offset market price increases

- Strong cash flow marks third-quarter performance

- In fourth quarter, Company focuses on restoring product spreads,
controlling working capital, maximizing cash generation

CLEVELAND, PolyOne Corporation
(NYSE: POL), a leading global polymer compounding and North American
distribution company, today reported sales from continuing operations of
$579.

(* A discussion occurs at the end of this release on the use of non-GAAP
financial measures . Special items for continuing and discontinued
operations reduced 2005 net income $0.

North American Color - Sales were 3 percent lower and shipment volume
was 5 percent lower compared with the second quarter, due primarily to
auto production plant shutdowns and decreased seasonal demand for
construction materials. The main drivers of
the decrease were increased delivery costs resulting from fuel surcharges and
the volume decline.2 $583.04) 0.3
Depreciation and amortization 13.8 103.2 $37.1
Other current assets 14.6 17.0
Long-term debt 638.7

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 phase-out costs; 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.5) (1.3 10.5) (3.3) (0.8 2.
4.S.8 $42.4 (1.1 0.5
Distribution Segment 4. $8.

3.

-----------------------------------------------------------------
Weighted
average
Number of exercise
options price
-----------------------------------------------------------------

Outstanding, December 31, 2003 3,534,471 $9.75
-------- ---------------------------------------------------------

Outstanding, September 30 , 2004 3,713,586 7.81 1,964,434 6. The cost of natural gas
continued to increase reflecting the high level of oil and oil derivatives
prices.7%, on 24.7% or $8. This improvement was due to the
improved margins offset by the appreciation of the Canadian dollar and the
impact of an adjustment to the bad debt reserves due to the bankruptcy of BBI,
a customer in the automotive industry.

biocompatible elastomer

In integrating over 50 years of
design capability, material knowledge , and collaborating with our
customers, Chase-Walton excels at providing cost-effective, short-lead time
and excellent quality products.2 million for
the third quarter of 2005, due in large part to substantial improvements in
working capital efficiency and cash distributions from equity affiliates .7 million from $74.2 million, again
due primarily to lower product spreads. Pricing was up 1 percent over the
previous quarter. The volume decline
occurred in most products, including inks, plastisols and powders.
plastic processor indexes.com.24) 0.4 $85.9
Income tax expense (1.13 $0.7
Discontinued operations 34.4
Discontinued operations 44.7
Cash payments for environmental remediation at
inactive sites (11 .7)

Net cash provided by discontinued operations 23.9) 0.9) (7.7)

Impact on operating income (1.7)
Net asset impairment and loss
on disposition of discontinued
operations (4) (14.8) (1. Tax allowance to adjust net U.04) 0.7 (2.6 (0.4 $68.S.03 $0. dollars)
(unaudited)

Specialty
Three months ended Polymers
June 30, 2005 Acetyls and Films Corporate Total
------------ ------------ ------------ ------------

Sales $84,770 $56,882 - $141,652

Cost of goods sold and
operating expenses 72,113 50,743 1,023 123,879
Amortization 5,298 1,724 11 7,033
---------- -- ------------ ------------ ------------
77,411 52,467 1,034 130,912
------------ ------------ ------------ ---------- --

Operating earnings $7,359 $4,415 $(1,034) 10,740
------------ ------------ ------------
------------ --- --------- ------------
Interest expense (7,782 )
Transaction expenses (891)
Equity income (loss) 279
Foreign exchange gain
(loss ) and other 1,489
Income taxes (278)
------------
Net earnings (loss) $3,557
------------
------------

Six months ended
June 30, 2005

Sales $181,761 $106,241 - $288 ,002

Cost of goods sold and
operating expenses 152,711 95,514 1 ,616 249,841
Amortization 11,461 3,285 21 14,767
------------ ------------ ------------ ------------
164,172 98,799 1,637 264,608
------------ ------------ ------------ ------------

Operating earnings $17,589 $7,442 $(1,637) 23,394
------------ ------------ ------------
------------ ------------ ------------

Interest expense (15,444)
Transaction expenses (2,510)
Equity income (loss) 398
Foreign exchange gain (loss) and other 2,764
Income taxes (541)
------------
Net earnings (loss) $8,061

As at June 30, 2005

Total assets $254,511 $210,515 $14,733 $479,759
------------ ------------ ------- ----- ------------
------------ ------------ ------------ ------------

ACETEX CORPORATION

SEGMENTED INFORMATION
(thousands of U.01- $48.35
----------------------------- ------------------------------------

2,199,434 6. This increase resulted primarily from an increase in
average selling prices on a USD basis of 20% offset by decreased sales volumes
of 8% from 2004 to 2005.2 million from $9. The increase in gross profit was primarily due to the
increase of the average product selling prices. Consistent with described for the second quarter, the cost of
natural gas continued to escalate.5 million to $106.6 million compared to $15 . This
investment is recorded in Other Assets on the consolidated balance sheet.02
------- ------------------------------------------------------------------

------------------ ------------------------------------------------------
Q2 /04 Q1/04 Q4/03 Q3/03
----------------------------------------------------------- --------------
Sales 129,179 127,951 114,551 97,118
-------------------------------------------------------------------------
Net earnings (loss ) 1,093 (644) (7,861) (10,412)
------------------------------------- ------------------------------------
Net earnings (loss) per share 0.

macrogalleria tearing

), and most recently
served as a business unit director with a major medical device
manufacturer. Net income declined to
$25.

Segment Highlights (see Attachment 7)

Performance Plastics segment:
Third-quarter sales and shipment volumes increased $1.
PolyOne anticipates positive operating cash flow from operations in the
fourth quarter. The most directly
comparable GAAP financial measures are: net cash used (provided) 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 in decisions on allocation of resources. (Ref. As a result, reporting and
discussion of items above the operating income - continuing operations line
(such as sales, operating income, interest, and selling and administrative
costs) include only the results of continuing operations.3 (0.5) $11.32
Discontinued operations 0.5 91.2
Other shareholders' equity 397.9
Net cash provided (used) by investing activities
of continuing operations (10.0) (83.3)
Proceeds from exercise of stock options 0.7 66.2 5.3) (28.05 $0.04
Diluted income (loss) per share $0.03 $- $0.1 28.4 $85. VANCOUVER, July 19 - Acetex Corporation announced
today results for the three months ended June 30, 2005, determined under
Canadian generally accepted accounting principles. Operations:

Acetex Corporation was incorporated under the laws of the
Province of Alberta on December 1, 1994.
This change in classification has no impact on operating earnings
and net earnings (loss). For
all periods presented, net earnings (loss) available to common
shareholders equals net earnings (loss).

5.2 million in the comparable period in
2004.7 million. Overall Polymers selling prices
increased by 27.7% or $2. The profit improvement was from the improved
product mix and unit price increases.4 million from $5.

thermoplastics mechanically

, a provider of silicone products primarily to the
consumer healthcare market.

Cathcart holds a B.

About Chase-Walton:

Chase-Walton offers a complete design, development, and fabrication
solution of silicone elastomer components .0 million for the third quarter ended September 30, 2005, an improvement
of nearly 5 percent over third-quarter 2004 sales of $552. A definition and detailed list of special items
appear in Attachment 5. Driven by strong
September results, however, shipments improved 2 percent over second-quarter
2005 levels.
For the first nine months of 2005, sales increased 11 percent while
shipment volume decreased 2 percent compared with 2004.
Investors should bear this in mind as they consider forward-looking
statements.9 8.4 1.13 $0.8 92.9 309.2 1 .1)
Dividends and distributions received 46.2

Financing Activities
Change in short-term debt 4.2) (0.2) - -
Rubber Granules business
Impairment of previously idled
chlor-alkali facility at
Oxy Vinyls, LP (22.1) 5.2) 9. deferred income tax assets resulting
from operating loss carry-forwards.9) (7.6) (1.02) (0.8) 2.4)
$579.,
% of Total % Change % Change % Change % Change

Performance Plastics

Vinyl Compounds 32% 8% 7% 10% 0%

Polymer Coatings
(Formulators) 7 (9) (9) 1 (8)

NA Color and
Additives 10 (3) (5) 7 (1)
Masterbatch

NA Engineered
Materials 4 (6) (5) (10) (7)

International Colors
and Engineered
Materials 19 (5) (1) 3 (5)

Total 73 0 1 6 (2)

Distribution 27 (1) 2 (9) (2)

Total 100% (1)% 2% 5% (2)%

$17. Acetex has plants in France, Spain, and Edmonton, Alberta,
and sells to customers primarily in Europe, the United States , and Canada.
Acetex's common shares are listed for trading under the symbol "ATX" on The
Toronto Stock Exchange, which has neither approved nor disapproved the
information contained herein.01
Cash generated from
(applied to)
operations(2) 10,291 7,857 22,638 15,048
Cash generated from
(applied to)
operations per
share(2) $0. Previously the amounts were recorded within
operating earnings.10)
Expired (6,916) (11.2 million to
$10. Films volumes were down 8.
The Company expects to satisfy its cash requirements in the future
through internally generated cash and borrowings under the AT Plastics
revolver.

curable mechanically

"

Chase-Walton

Cathcart was previously operations manager with Rampart Packaging, a
subsidiary of Shell Oil Company (now Printpack , Inc. September ranks as the second-strongest shipping month to date
in 2005.
The May 2004 sale of the Germany-based Melos rubber granulates business
accounted for 11 percentage points of the year-over-year volume decline,
and reduced the year-over-year sales improvement by 3 percentage points. Higher average
selling prices drove the sales increase.9 million compared with 2004.
A fourth-quarter outlook appears in PolyOne's Form 10-Q for the quarter
ended September 30, 2005. Information on PolyOne's
products and services can be found at http://www. In addition , operating
income before special items and operating cash flow are components of various
PolyOne annual incentive plans. 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.5) $11.9 159.5 0.3 36.05 0.21) $0.6 380.8

Attachment 4
PolyOne Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

Nine Months Ended
September 30,
2005 2004
Operating Activities
Net income $25.0 1.9)

Investing Activities
Capital expenditures (23.7) (5.1) 3.04) 0.9

Continuing operations:
Income per share before impact of
special items $0.17 $0.24) $0.04 $0.0) -
Operating income $6. These chemicals and their
derivatives are used in a wide range of applications in the automotive ,
construction, packaging, pharmaceutical and textile industries.
The Company has calculated cash flow consistently for all periods
presented.

Production Volume Information (tonnes)
Acetyls Segment
Acetic Acid 103,168 106,647 209,029 207,828
VAM - Pardies 32,746 36,416 65,148 73,965
Acetic Acid Derivatives 21,148 17,917 41,300 36,101

---------------------- ---------------------------------------------------
Specialty Polymers +
Films Segment
Specialty Polymers 33,150 35,690 67,506 69,461
Films 4,245 4,265 8,193 8,478

ACETEX CORPORATION

CONSOLIDATED BALANCE SHEETS
(thousands of U.01
Weighted average
number of common
shares outstanding
Basic 34,942,793 33,907,045 34,689,986 33,905,560
Diluted 35,743,223 34,425,111 35,537,075 34,373,442

(x) Number of shares outstanding at June 30, 2005: 35,331,663

See accompanying notes to interim consolidated financial statements .

ACETEX CORPORATION

SEGMENTED INFORMATION
(thousands of U. The Company
applies the fair value method of accounting for all stock-based
transactions, which includes stock options granted by the Company
to employees. Share capital:

(a) Authorized: Unlimited number of common shares.

(b) Issued:

Number of Assigned
common shares value
-----------------------------------------------------------------

Issued, December 31, 2003 33,901,438 $103,059
Issued on exercise of options 3,333 7
----------------------------- ------------------------------------

Issued, March 31, 2004 33,904 ,771 103,066
Issued on exercise of options 4,083 8
-----------------------------------------------------------------

Issued , June 30, 2004 33,908,854 103,074
Issued on exercise of options 26,315 84
------------------------------------------------- ----------------

Issued, September 30, 2004 33,935,169 103,158
Issued on exercise of options 416,650 1,865
---- -------------------------------------------------------------

Issued, December 31 , 2004 34,351,819 105,023
Issued on exercise of options 112,500 525
----------------------------------------------------------- ------

Issued, March 31, 2005 34,464,319 105,548
Issued on exercise of options 867,344 4,270
-------------- ---------------------------------------------------

Issued, June 30, 2005 35,331,663 $109,818

(c) Stock options:

The Company 's stock option plan provides for grants to directors,
officers and key employees.66)
Expired (30,238) (54.46)
Expired (82,370) (60.65
Expired (35,288) 38. Subsequently, the Company's shareholders approved
the transaction on January 12, 2005.

The Company's shareholders will receive CDN $9.1 million to $84.0 million to $22. However, this improvement was negatively
impacted by the strength of the Canadian dollar.5% to $4.9 million for the three months ended June 30, 2004.4 million has been invested , during the first six months
of 2005, in the previously announced project to construct an integrated acetic
acid, methanol and VAM production facility in Jubail, Saudi Arabia.13 (0.

polyurethanes irreversible

3 million and
1 percent, respectively, compared with the second quarter of 2005.
Powder shipment levels were affected by product buildouts and shutdowns
in the auto industry during the third quarter . The unit continues, however, to
demonstrate gains in new applications within custom compounding .
Year-to-date operating income before the special item associated with
idled facilities improved $27. "In the fourth quarter, our focus is restoring
product spreads through higher selling prices , with the goal to have those
spreads back to acceptable levels as we enter 2006."
In the Resin and Intermediates segment, OxyVinyls is attempting to raise
PVC resin prices in the face of escalating ethylene and natural gas costs,
which would result in PVC resin prices increasing significantly in October. Capital expenditures,
depreciation and cash taxes paid should approximate third-quarter levels.6 $31.4 11.4 11.1) (51.4) (6.7) (12.4) (7.6 $25.1

Earnings (loss) per common share:
Basic and diluted earnings (loss):
Before discontinued operations $(0.8 91.7
Inventories 194.9 14.0 224.4
Adjustments to reconcile income from continuing
operations to net cash used by operating activities
of continuing operations:
Employee separation and plant phaseout charges 2.9 8.3 38.9)
Impact on pre-tax income (28.7 (8.31) (0. 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.
2.9
Special items in continuing
operations , before tax (27.7

Plus voluntary payments
to employee pension plans $- $- $- $-
Less proceeds from
sale of assets - (5.6) - -
Less guarantee of SunBelt
outstanding senior
secured notes - - - -
Less proceeds from sale of
business, net of note
receivable - (101.8 $42.

Acetex reports results for the three months and six months ended June 30 2005

EBITDA is not a
term that has an established meaning under generally accepted
accounting principles and should not be considered in isolation from
net earnings (loss) or other amounts as calculated under generally
accepted accounting principles. EBITDA may not be calculated in a
comparable manner to other companies.
(2) Calculated as cash flow from operations less increases in non-cash
operating working capital.10 $0.4 million for
maintenance -level capital at the four European sites.02) (0.

epsrc tearing

"Paul brings to the company more than 25 years of manufacturing experience
in the production of medical devices, pharmaceutical packaging and
bio-pharmaceutical devices," said Tim Pryce, President of Chase-Walton.9 million pre-tax charge for a change in estimates to
environmental reserves.1 percent
increase over 2004, due primarily to higher realized selling prices. Colorant product volume,
however, improved sequentially .2 million, an increase of
$0. PVC market prices declined in July and August. Patient,
who had been non-executive chairman of the board, will serve as chairman,
president and chief executive officer until a successor is named.polyone. Also attached are
standard financial schedules and a summary of segment results. Forward-
looking statements give current expectations or forecasts of future events and
are not guarantees of future performance.
#91305)

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 tax
as a separate line item on the statement of operations (income statement).31) (0.9 (0.2) (54.9 $1,771.8

Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank debt $6.6 49.6
Loss on sale of assets - 5.4) (0.05

Discontinued operations
Employee separation and plant
phase-out costs (1) (1.6) (1.0 0.4)
Operating income $(1.5 4.4 55.10 $0.

(b) Stock-based compensation:

The Company has a stock-based compensation plan.99
Exercised (26,315) (4.67)
--------------------------------- --------------------------------

Outstanding, December 31, 2004 3,214,566 6.63
Exercised (867,344) 6.00 130 ,538 16.90
-----------------------------------------------------------------
-----------------------------------------------------------------

4. Reconciliation of Net Earnings (loss) for Canadian GAAP to U. GAAP:

Canadian and U.3 million to $7.3 % compared
to the same period last year, however, volumes decreased 10.1 million or
39.0 million for the six
months ended June 30, 2004.9 million for the Specialty Polymers and Film
Businesses .