A. Schulman Reduces Production Manpower

2 July 1998

A. Schulman Reduces Production Manpower at Orange, Texas, Dispersion Plant

    AKRON, Ohio--July 2, 1998--A. Schulman Inc. (The Nasdaq Stock Market:SHLM) announced today that it is reducing production at its dispersion plant in Orange, Texas, by cutting back its seven-day-a-week operations to five days.
    The cutback, which takes effect July 13, will result in the layoffs of approximately 25 hourly employees and three salaried employees. Five temporary workers are also being laid off. Prior to this announcement, the dispersion plant had a work force of 144 employees. The plant produces a variety of compounds used in automotive applications and other industries.
    A. Schulman President and Chief Executive Officer Terry Haines said the reduced production and layoffs are necessary due to weakening sales in the auto industry and a general softening of business conditions.
    The company expects that the reductions in Orange, Texas will not require any significant charges or write-offs.
    Based in Akron, Ohio, A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The company employs 2,200 people and has 13 manufacturing facilities in North America, Europe, Mexico and the Asia-Pacific region. Revenues for the fiscal year ended August 31, 1997, were approximately $1 billion.