Eastman Awards Contract for IntegRex Facility to Lockwood Greene

Eastman Awards Contract for IntegRex Facility to Lockwood Greene

    Business Editors

    COLUMBIA, S.C.--(BUSINESS WIRE)--Feb. 8, 2005--Eastman Chemical Company (NYSE: EMN):

--	IntegRex facility first of its kind
--	South Carolina-based Lockwood Greene begins work in March

    Eastman Chemical Company (NYSE: EMN) announced today it has awarded South Carolina-based Lockwood Greene an engineering, procurement, and construction contract for the construction of the first commercial scale PET plant based upon the patented IntegRex technology at Eastman's existing site in Columbia, S.C.
    IntegRex technology, introduced by Eastman in September of 2004, is a breakthrough innovation in the integrated manufacturing of paraxylene (PX) to polyethylene terephthalate (PET) resin. Eastman is the world's leading supplier of PET for packaging and expects to have the new 350,000 metric ton manufacturing facility on-line and at full capacity by the fourth quarter 2006. Additional elements of IntegRex technology will be used to retrofit the company's existing intermediates assets to provide a portion of the purified terephthalic acid (PTA) needed for this expansion.
    "This facility will look like no other PET resin manufacturing plant in the world because it's like no other PET manufacturing plant in the world," said Allan Rothwell, Eastman executive vice president and president of the company's Voridian Division. "A key factor in selecting Lockwood Greene to build this first-of-its-kind PET plant was their experience in managing complex and highly integrated projects."
    "We're pleased to have been awarded this major engineering, procurement, and construction contract in our home state of South Carolina," noted Fred Brune, President and CEO, Lockwood Greene. "We look forward to working with Eastman to safely deliver their strategically important Voridian facility and innovative IntegRex technology to the marketplace."
    "This announcement is proof that when you create an environment that's good for business, the result is more jobs and more capital investment for South Carolina," said South Carolina Governor Mark Sanford. "By reducing our income tax rate and making other needed reforms, we can encourage the growth of large manufacturing companies like Eastman, which is adding to its workforce and making a sizeable investment in Calhoun County, as well as professional service firms like Lockwood Greene. This administration is going to continue its push for changes so that we can bring quality jobs to the state."
    "We are thrilled that Eastman Chemical Company and its Voridian Division have chosen a South Carolina-based company to construct its state-of-the-art new facility," said Commerce Secretary Bob Faith. "Much like Eastman, Lockwood Greene is a company that's dedicated to innovation, safety, project delivery excellence, and customer satisfaction. I applaud Eastman on its excellent choice."
    A formal ground-breaking ceremony is planned for early March.

    About Lockwood Greene

    Lockwood Greene (www.lg.com) is a global business partner for engineering and construction, with headquarters in Spartanburg, SC / USA. Founded in 1832, Lockwood Greene is an Industrial Client Group subsidiary of CH2M HILL (www.ch2m.com), a $3 billion employee owned project delivery firm with more than 14,000 employees in 168 global offices.

    About Eastman Chemical Company

    Headquartered in Kingsport, Tenn., Eastman manufactures and markets chemicals, fibers, and plastics. Founded in 1920, the company has approximately 12,000 employees and had 2004 sales of $6.6 billion. To learn more about Eastman and its products, visit www.eastman.com.

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CONTACT: Eastman Chemical Company Fletcher Dean, 423-229-3880 fdean@eastman.com or Lockwood Greene Brian Mershon, 864-599-4508 bmershon@lg.com

KEYWORD: TENNESSEE SOUTH CAROLINA INDUSTRY KEYWORD: CHEMICALS/PLASTICS REAL ESTATE BUILDING/CONSTRUCTION FOREST PRODUCTS MANUFACTURING MARKETING AGREEMENTS SOURCE: Eastman Chemical Company

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