PPG-Helios Lands Chemical Management Contract With Russian Automaker AutoVAZ

TROY, Mich., May 9, 2005 -- PPG-Helios, a joint venture between PPG Industries and Helios, recently signed a five-year contract with AutoVAZ -- which will begin in July -- to provide the vehicle manufacturer with chemical management for its new paint shop in Togliatti, Russia.

The chemical management contract comes as an addition to the process management services that PPG-Helios has been providing to AutoVAZ since February of this year.

PPG-Helios will utilize a chemical management program from PPG Total Service Solutions -- a division of PPG Industries -- to run the automotive coatings process in all key areas of the paint shop for the new Lada Kalina line-up of compact cars, including pretreatment, electropaint, paint mix room and spray booths. In addition, PPG-Helios will be providing paint and chemical expertise to help improve quality and reduce costs.

"This program is truly beneficial to everyone involved," said Mark Charles, managing director, PPG-Helios. "By utilizing our extensive knowledge of the paint process, AutoVAZ can become even more competitive and reduce overhead. It also enables PPG-Helios to strengthen its position as the leading supplier of coatings in the Russian automotive industry. In addition, PPG Total Service Solutions will be leveraging its global strengths to gain business in Eastern Europe for the very first time."

Based in Togliatti, Russia, AutoVAZ was created in 1969 through a collaboration with Fiat and is a manufacturer of passenger automobiles. Producing more than 700,000 cars a year, the company's factory is one of the largest in the world with more than 90 miles of production lines and is unique in that most of the components for the cars are made in-house.

PPG-Helios, a joint venture between PPG Industries and Helios, is based in Domzale, Slovenia and is a leading supplier of coatings to the Russian automotive industry.

The only program of its kind to be offered by a global coatings supplier, PPG Total Service Solutions assists manufacturers with implementing turn-key outsourcing programs, such as chemical and fluid management, process management and logistics. In addition, the team offers booth maintenance chemicals, paint detackification products, purge solvents and paint line cleaners and can provide the personnel to launch and implement these products and processes.

PPG Total Service Solutions -- based in Troy, Mich. -- is a leader in providing manufacturers with a cost-effective structured management program that assists in the implementation of a global standard for service.

Pittsburgh-based PPG is the world's leading manufacturer of transportation coatings and a global supplier of industrial and packaging coatings, and a leading producer of architectural coatings, primarily in North America. In addition, PPG manufactures flat and fabricated glass, continuous-strand fiber glass and chemicals. Sales were US$9.5 billion in 2004.