Covalence Specialty Materials Corp. Launched As Independent Private Company

$1.7 Billion Business is a Leading Producer of Plastics and Adhesives

Princeton, NJ — Covalence Specialty Materials Corp., a business with $1.7 billion in revenues, formerly the Plastics and Adhesives operation of Tyco International, has joined the ranks of the nation's independent, private companies.

The occasion was marked by completion of the purchase of Covalence in a $975 million transaction, by Apollo Management L.P., one of the nation's leading private equity firms. Mr. Terry A. Sutter, former president of the predecessor business, Tyco Plastics & Adhesives and former president of the Specialty Chemical Division of Cytec Industries, has been named President and CEO. Mr. Marvin O. Schlanger, former President and CEO of Arco Chemical and former Chairman and CEO of Resolution Performance Products, has been named Chairman.

"This is an exciting time for all of us at Covalence," said Terry A. Sutter, "As a stand-alone business with strong financial backing and an aggressive entrepreneurial spirit, we have been presented with a unique opportunity to further expand Covalence's rich product mix and to broaden the markets we serve. Our objective is to be innovative, but also to build a solid, financially secure business of broad stature and sustainable growth."

Mr. Sutter pointed out that the Company's new name was specifically chosen to underscore Covalence's mandate. "Covalence means a shared bond and it is representative of the relations we have with our customers, suppliers, employees and investors," he commented. "Specialty Materials signifies the broad product line and array of technologies we utilize every day."

The Company has defined its key drivers as follows:

• Top-Line Growth - driving volume growth through innovative new products, expanding our customer base and growing with our existing customers.
• Operational Intensity -- promoting best-in-class operating practices to drive productivity and environmental health and safety.
• Customer Service -- improving quality, delivery and ease of doing business.
• Organizational Effectiveness -- putting in place the right structure, people, processes, and rewards to execute our strategies and deliver sustainable results.

"Our move to a separate, strongly positioned private company, with a broad constituency that includes the people we work with and the markets we serve each day as well as our investors and the financial community, is a tremendous opportunity that we expect to make the most of," said Mr. Sutter.

SOURCE: Covalence Specialty Materials Corporation