PPG Chairman Bunch Says Company is Delivering on Growth Commitments

NEW YORK--Charles E. Bunch, chairman and chief executive officer of PPG Industries (NYSE Arca:PPG), told investment analysts here today he believes the company’s financial results demonstrate its ability to consistently deliver profitable growth.

“Our diverse business portfolio enables us to weather shifts in today’s changing global economy,” said Bunch. “What’s more, we have taken decisive steps to leverage our operational excellence and leadership positions to strengthen many of our businesses.

“Our pursuit of organic growth and growth through acquisitions and joint ventures is beginning to have a significant impact on our performance. But more importantly, we believe it is laying the foundation for even greater profitability, accelerated earnings – and shareholder value – in the future.”

Bunch said that PPG’s performance has been strong despite a slowing North American economy. He attributed this to the company’s success in passing along increases in raw materials and energy, as well as its diversified position in the automotive market, close alignment with the commercial construction segment, and its broad geographic presence, which has lessened the company’s dependence on the North American economy.

Bunch reviewed the company’s activities over the past 12 months to grow by targeting aerospace products, architectural coatings, optical products and the Asian coatings market.

“Simply put, we’re walking the talk when it comes to our growth plans,” he said. “In 2006, so far we have spent about $400 million on acquisitions, plus we assumed about $80 million in debt. In 2006, we expect these acquisitions to add about $350 million in sales as most were acquired for a partial year. In 2007, we expect these same acquisitions to generate between $700 and $800 million in sales.”

Bunch said earnings growth is expected to come through successful integration of recent acquisitions. “We are aiming for coating industry average margins on our acquisitions by 2007. But more importantly, we expect to bring these businesses to margins more in line with PPG’s industry-leading coatings margins soon after that.”

For 14 consecutive quarters, PPG has posted all-time quarterly sales records. Last month, the company reported record sales for the third quarter of $2.8 billion, surpassing third quarter 2005 record sales by 10 percent. The performance also marked the second-highest sales for any quarter in the company’s history.

“We have the financial strength and discipline to make solid, strategic acquisitions that position us to accelerate growth, strengthen our businesses and ultimately reward shareholders,” said Bunch. He added that he expects the company could spend as much as $200 million in share buybacks in 2007.

About PPG

Pittsburgh-based PPG is a global supplier of coatings, chemicals, optical products, glass and fiber glass. The company employs more than 31,000 people and has 110 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2005 were $10.2 billion. PPG shares are traded on the New York, Pacific and Philadelphia stock exchanges (symbol: PPG). For more information, visit www.ppg.com.