Kingsport, Tenn., Eastman Chemical Company recently announced changes to its organizational structure that will help it more efficiently and quickly take full advantage of growth opportunities. The company’s existing divisions have been realigned to tap synergies across technologies and markets.

“This structure, which is built around related technologies and assets, brings a stronger focus on the capabilities within our core businesses,” said Brian Ferguson, chairman and CEO. “Eastman will also be in a stronger position to drive growth opportunities as we work with our customers to bring their own product innovations to market faster.”

Under the new structure Eastman will be organized into two business groups, effective April 1, 2006. The chemicals and fibers business group will consist of the company’s performance chemicals and intermediates; fibers; and coatings, adhesives, specialty polymers and inks segments. The polymers business group will include the company’s polymers and specialty plastics segments.

As part of the realignment, organizations that were part of Eastman’s Voridian Division will be formally folded into these two groups.   Fibers will become part of the chemicals and fibers group.   Polymers manufacturing will now be part of the polyesters business. This group will take advantage of synergies between the polymers and the specialty plastics organizations. Eastman is the largest supplier of polymers for packaging, as well as the largest acetate fibers supplier, in the world.

“The restructuring aligns market insight and product development in way that will better support customer needs," said Ferguson. "Combining the strengths of Eastman’s polymers segment into one group supports the company’s integrated polyester strategy.”

Eastman’s integrated polyester strategy redeploys production assets and intermediates to develop unique co-polyester products for new markets. The strategy was announced in 2004 at the launch of IntegRex, Eastman’s revolutionary new production process for the manufacture of PET resin.

“We’re excited about the expanded opportunities for collaboration across all our related assets and technologies that this structure will provide,” Ferguson said. “Eastman has an 86-year legacy of customer service, operational performance and employees dedicated to excellence. By putting these leaders and organizations together in this new structure, we’re building on those strengths and capabilities to help us, and our customers, achieve success in the future.”

About Eastman

Eastman Chemical Company (NYSE:EMN) manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products; is the world’s largest producer of PET polymers for packaging; and is a major supplier of cellulose acetate fibers. Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a FORTUNE 500 company with 2005 sales of $7 billion and approximately 12,000 employees.

For more information about Eastman and its products, visit www.eastman.com, or contact, Rachel-Marie Lewis, media relations manager, Eastman, tel: +1 423 229 2721 or email: rmlewis@eastman.com.