A. Schulman Reports Second-Quarter 2000 Results -- Posts Record Sales for First Six Months --.

Business Editors

AKRON, Ohio--(BUSINESS WIRE)--April 12, 2000

A. Schulman Inc. (Nasdaq:SHLM) announced today that sales for the fiscal second quarter ended February 29, 2000 totaled $248.1 million, an increase of 5.5% over last year's second-quarter sales of $235.2 million. Tonnage was up 7.8%, but the translation effect of the weak Euro reduced sales by $19.2 million or 8.1%. Higher prices and product mix increased sales by 5.8%. Net income was $9,734,000 or $.32 per common share compared with last year's second-quarter earnings of $8,640,000 or $.27 per share. Earnings include income of $.05 per share or $1,748,000, net of $941,000 in taxes, from consideration received due to demutualization of one of the Company's insurance carriers in North America.

For the six months ended February 29, 2000, sales were $521.8 million, the highest for any comparable period in the history of A. Schulman. Sales were up 5.7% over last year's sales of $493.8 million for the comparable period. Volume was up 8.3%, but the translation effect of the weak Euro reduced sales by $35.2 million or 7.1%. Higher prices and product mix increased sales for the six months by 4.5%. Net income was $21,676,000 or $.70 per common share compared with $21,458,000 or $.67 per share for the same period last year. Fiscal first-half 2000 earnings include $.05 per share from demutualization of an insurance company and $.02 per share or $787,000 from the first-quarter settlement of an insurance claim resulting from equipment problems at a North American facility.

Basic and diluted per share earnings are the same for all reported periods.

The translation effect of the weaker Euro negatively impacted net income by $939,000 or $.03 per share for the quarter and $1,843,000 or $.06 per share for the six months ended February 29, 2000.

The Euro has shown little sign of strengthening and the Company anticipates an adverse translation effect on earnings for the balance of the fiscal year.

"Our order levels are quite good, especially in Europe," said Terry L. Haines, president and chief executive officer. "We anticipate volume gains throughout our operations, but there will be continuing pressure on margins and an adverse translation effect from the Euro during the second half of our fiscal year."

European sales were up 6.6% for the second quarter and 4.7% for the first six months. Operating income of $12.8 million for the quarter was up 16% from the same period last year. For the six-month period, European operating income was up $3.1 million or 12%. European volume was up 10% for the quarter and 12% for the six-month period. The largest gain occurred in A. Schulman's manufacturing operations, where volume was up 22% for the quarter and 18% for the six-month period. Capacity utilization in Europe was 85% for the quarter and the six-month period. Profit margins were up modestly for the quarter and approximately the same for the six-month period.

Sales in North America were up 4% for the quarter and 7% for the six-month period. Tonnage advanced 4.7% for the quarter and 3.9% for the six-month period. Operating income for the quarter was $1.4 million, excluding $2.7 million of income from demutualization of an insurance carrier, compared with $3.7 million for the same quarter last year. Capacity utilization for the quarter improved to 85% from 81% last year, but profit margins declined from 16% to 13.7% due to the higher cost of plastic resins and competitive price pressures.

"There has been a significant increase in plastic resin prices over the past year due to an increase in oil prices and strong demand throughout world markets," said Haines. "Due to competitive pressures, it has been extremely difficult to pass on these increases to customers through higher selling prices. Even though we have had recent success in raising our prices, we expect, for the balance of our fiscal year, continued upward pricing pressures for the resins we use in our products."

Haines said, "We have continued to be buyers of our common stock. During the first half of our fiscal year, we repurchased 990,833 shares for approximately $14.4 million or an average price of $14.48 per share. Purchases were accelerated during our second quarter when we repurchased 738,833 shares at an average price of $13.99 per share." The Company has 2.7 million shares remaining under a 6 million-share authorization approved by A. Schulman's Board in August 1998. As of February 29, 2000, there were 30,139,322 shares outstanding compared with 31,819,505 shares outstanding at the same time last year.

Headquartered 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 about 2,400 people and has 13 manufacturing facilities in North America, Europe, Mexico and the Asia-Pacific region. Revenues for the fiscal year ended August 31, 1999, were $986 million. Additional information about A. Schulman can be found on the World Wide Web at www.aschulman.com.

Statements in this release which are not historical facts are forward looking statements which involve risks and uncertainties and actual events or results could differ materially from those expressed or implied in this release. These "forward-looking statements" are based on currently available information. They are also inherently uncertain, and investors must recognize that events could turn out to be significantly different from what was expected. Examples of such uncertainties include, but are not limited to, the following:

-- Worldwide and regional economic, business and political

conditions

-- Fluctuations in the value of the currencies in major areas

where the Company operates, i.e., the U.S. dollar, the Euro,

U.K. pound sterling, Canadian dollar, Mexican peso and

Indonesian rupiah

-- Fluctuations in the prices of plastic resins and other raw

materials

-- Changes in customer demand and requirements

A. Schulman, Inc. and its Consolidated Subsidiaries
Financial Highlights

                                              Three Months Ended
                                      Feb. 29, 2000   Feb. 28, 1999

Net Sales                             $248,088,000     $235,198,000
Interest and Other Income                3,200,000        1,111,000
                                       251,288,000      236,309,000

Cost of Sales                          207,157,000      195,706,000
Other Costs and Expenses                28,442,000       26,293,000
                                       235,599,000      221,999,000

Income before Taxes                     15,689,000       14,310,000

Provision for U.S. and Foreign Income
   Taxes                                 5,955,000        5,670,000

Net Income                              $9,734,000       $8,640,000

Weighted Average Number of Shares
   Outstanding:
        Basic                           30,560,633       31,981,838
        Diluted                         30,560,633       32,005,575

Basic and Diluted Earnings per Share         $0.32            $0.27


                                              Six Months Ended
                                      Feb. 29, 2000   Feb. 28, 1999

Net Sales                             $521,773,000     $493,844,000
Interest and Other Income                5,028,000        1,762,000
                                       526,801,000      495,606,000

Cost of Sales                          433,965,000      404,902,000
Other Costs and Expenses                57,657,000       55,278,000
                                       491,622,000      460,180,000

Income before Taxes                     35,179,000       35,426,000

Provision for U.S. and Foreign Income
   Taxes                                13,503,000       13,968,000

Net Income                             $21,676,000      $21,458,000

Weighted Average Number of Shares
   Outstanding:
        Basic                           30,776,227       32,135,088
        Diluted                         30,776,227       32,146,957

Basic and Diluted Earnings per Share         $0.70            $0.67



Condensed Balance Sheet
                                  February 29, 2000  August 31, 1999
Assets
Current Assets                        $423,395,000     $408,096,000
Other Assets                            20,726,000       23,088,000
Net Property, Plant and Equipment      153,304,000      160,343,000
                                      $597,425,000     $591,527,000

Liabilities and Stockholders' Equity
Current Liabilities                   $119,544,000     $117,816,000
Long-Term Debt                          83,924,000       65,000,000
Deferred Credits and Other
  Long-Term Liabilities, etc            53,229,000       52,465,000
Stockholders' Equity                   340,728,000      356,246,000
                                      $597,425,000     $591,527,000

Supplemental Information
                                          North
                                         America          Europe
Three months ended February 29, 2000:

Sales to unaffiliated customers       $105,253,000     $142,835,000
Gross profit                           $14,397,000      $26,534,000
Operating income                        $4,108,000(a)   $12,781,000
Interest expense, net                        -                -
Income before taxes                     $4,108,000      $12,781,000

Three months ended February 28, 1999:

Sales to unaffiliated customers       $101,234,000     $133,964,000
Gross profit                           $16,151,000      $23,341,000
Operating income                        $3,672,000      $11,060,000
Interest expense, net                        -                -
Income before taxes                     $3,672,000      $11,060,000

                                           Other        Consolidated
Three months ended February 29, 2000:

Sales to unaffiliated customers              -         $248,088,000
Gross profit                                 -          $40,931,000
Operating income                             -          $16,889,000
Interest expense, net                  ($1,200,000)     ($1,200,000)
Income before taxes                    ($1,200,000)     $15,689,000

Three months ended February 28, 1999:

Sales to unaffiliated customers              -         $235,198,000
Gross profit                                 -          $39,492,000
Operating income                             -          $14,732,000
Interest expense, net                    ($422,000)       ($422,000)
Income before taxes                      ($422,000)     $14,310,000

(a) Includes income of $2,689,000 relating to consideration
received due to demutualization of insurance carrier in North America.


Supplemental Information
                                        North
                                       America        Europe
Six months ended February 29, 2000:
Sales to unaffiliated customers     $221,609,000       $300,164,000
Gross profit                         $30,960,000        $56,848,000
Operating income                      $8,453,000(a)(b)  $28,960,000
Interest expense, net                      -                  -
Income before taxes                   $8,453,000        $28,960,000

Six months ended February 28, 1999:

Sales to unaffiliated customers     $207,197,000       $286,647,000
Gross profit                         $35,053,000        $53,889,000
Operating income                     $10,157,000        $25,874,000
Interest expense, net                      -                  -
Income before taxes                  $10,157,000        $25,874,000

                                        Other          Consolidated
Six months ended February 29, 2000:
Sales to unaffiliated customers            -           $521,773,000
Gross profit                               -            $87,808,000
Operating income                           -            $37,413,000
Interest expense, net                ($2,234,000)       ($2,234,000)
Income before taxes                  ($2,234,000)       $35,179,000

Six months ended February 28, 1999:

Sales to unaffiliated customers            -           $493,844,000
Gross profit                               -            $88,942,000
Operating income                           -            $36,031,000
Interest expense, net                  ($605,000)         ($605,000)
Income before taxes                    ($605,000)       $35,426,000


(a) Includes income of $2,689,000 relating to consideration received
    due to demutualization of insurance carrier in North America.
(b) Includes income of $1,211,000 from settlement of insurance claim
    resulting from equipment problems at North American facility.