JLM Announces Fourth Quarter Results.

Business Editors

TAMPA, Fla.--(BUSINESS WIRE)--March 7, 2000

JLM Industries, Inc. (Nasdaq:JLMI), reported a net loss of $3.5 million or $.53 per share on a fully diluted basis for the year ended December 31, 1999, as compared to net income of $5.7 million or $.81 per share on a fully diluted basis reported for the same period in 1998.

The results are in line with the Company's previously revised expectations announced February 2, 2000

Total revenues increased to $332.7 million for the year ended December 31, 1999 from $305.7 million reported during the same period last year, an increase of 8.8 percent. Within the marketing segment revenues increased 18 percent to $293.2 million due to the current year acquisitions, and strong contribution by the overseas subsidiaries, despite overall lower selling prices. Revenues for the manufacturing segment decreased $18.1 million to $39.5 million, as a result of a reduction in selling prices in phenol and acetone throughout the year.

Gross profit decreased 14.9 million to $21.4 million for the year ended December 31, 1999 from $36.3 million reported during the same period last year. The decline was attributable predominately to the manufacturing segment which experienced rapidly increasing feed stock prices coupled with lower selling prices in phenol and acetone.

One time charges for the 1999 calendar year include two non-recurring charges against after tax earnings of $.5 million. The company sold investment real estate which generated a loss of $.2 million. In addition, the Company also settled a 1997 contract dispute for $.3 million. The year also includes an after tax charge of approximately $70,000 related to service as a result of consolidating the back offices of Browning Chemical into the Tampa office. The overall effect on earnings per share would be $.09 per share.

Commenting on the results, John L. Macdonald, JLM's president and CEO, said "This is the first year in the history of JLM that we have had to report losses and we have been pummeled for it. The company had to witness a 50% erosion of its manufactured products'selling prices concurrent with a 170% run up in energy and feedstock costs. We have been hurt more than the normal cyclical downturn because of the simultaneous building of two new world scale phenol plants in the US market. To this we have to add higher interest rates and the way investors value new-economy companies versus old-economy or real industry."

Macdonald further stated, "I do not see a scenario where we could have had a more difficult year. We are presently seeing a rise in the cost of the finished product and a pass through of the higher energy costs, however, the new plants realize they can never show a return on investment unless there is a major correction in pricing. We are heartened by an increase in pricing and volume and look to return to a profitable manufacturing segment in the second quarter. The international and marketing companies still show strong growth and profitability."

"We note the valuations of the new-economy companies, and to that end we will introduce this month JLMI.com and the launching of our new website. We will merge e-commerce with our $400 million global distribution business to combine the best aspects of traditional chemical distribution with state-of-the-art Internet technology to produce a highly personalized customer and supplier experience. We look forward to a profitable 2000."

On September 1, 1999, JLM closed on the acquisition of the Colours and Industrial Chemicals Division of ICI South Africa and the majority shareholding in ICI South Africa Mozambique.

On November 8, 1999, JLM purchased Sofecia USA's industrial ethyl alcohol distribution business. The acquisition includes various assets, inventory, receivables and contractual commitments of Sofecia USA. The business is engaged in the marketing and distribution of synthetic and fermentation grade ethyl alcohol throughout the United States.

Simultaneously, JLM and Sasol Solvents, (SASOL) announced a joint initiative for marketing ethyl alcohol (ethanol) in North America. SASOL commissioned a new world scale ethanol production unit located in Secunda, South Africa. With the start up of this new unit and as SASOL's solvent distribution partner in North America, on December 1, 1999, JLM brought on-line a state of the art computerized blending and denaturing facility dedicated to serving the North American ethanol market. Located in Wilmington, North Carolina at the site of its subsidiary, JLM Terminals, the blending facility will use the latest in liquid handling and metering technology, ensuring accuracy and efficiency. The required denaturants will be stored on-site to ensure a seamless operation from production to delivery.

JLM repurchased 40,300 shares of its common stock in the open market during the fourth quarter of 1999 under the current stock repurchase program. Under this plan, the Company is authorized to purchase an additional 21,700 shares as of December 31, 1999.

JLM Industries, Inc. is a leading marketer, distributor and manufacturer of certain commodity chemicals, principally acetone and phenol. The Company believes it is the second largest marketer of acetone and the fifth largest marketer of phenol in North America. It is also a global distributor of olefins, principally propylene, as well as other commodity and specialty chemicals. The Company's principal products are used in the production of adhesives, coatings, forest product resins, paints, personal care, pharmaceuticals, plastics, solvents, synthetic rubbers and food processing.

This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include: the cyclical nature of the worldwide chemical market; the possibility of excess capacity; fluctuations in economic uncertainties associated with international operations; fluctuations of foreign exchange; the risks associated with potential acquisitions; and the ability to implement other features of the Company's business strategy.

                 JLM INDUSTRIES, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF INCOME (LOSS)
                              (UNAUDITED)

                    For the Three Months          For the Year
                      Ended December 31,        Ended December 31,
                    --------------------      --------------------
                    1998         1999          1998          1999
                    ----         ----          ----          ----

Revenues        $79,723,964  $100,693,114  $305,735,314  $332,697,833
Cost of sales    70,441,698    97,266,794   269,443,909   311,257,954
                -----------  ------------  ------------  ------------

  Gross profit    9,282,266     3,426,320    36,291,405    21,439,879
Selling, general
  and
  administrative
  expenses        7,651,595     6,951,902    23,644,565    24,632,066
                -----------  ------------  ------------  ------------


  Operating income
    (loss)        1,630,671    (3,525,582)   12,646,840    (3,192,187)
Interest expense -
  net              (208,729)     (502,033)   (1,300,161)   (1,676,036)
Other (expense)
  income - net     (189,945)      319,079      (160,412)      230,539
Foreign currency
  exchange loss
  - net             (44,850)     (108,755)      (38,434)     (237,784)
                -----------  ------------  ------------  ------------



Income (loss)
  before minority
  interest and
  income taxes    1,187,147    (3,817,291)   11,147,833    (4,875,468)
Minority interest
  in income of
  subsidiary       (122,810)      (52,295)     (255,867)     (287,218)
                                                         ----   ---------
--------        ----  ---------
                -----------  ------------  ------------  ------------



Income (loss) from
  continuing
  operations before
  income taxes and
  discontinued
  operations      1,064,337    (3,869,586)   10,891,966    (5,162,686)
                -----------  ------------  ------------  ------------


Income tax provision
  (benefit):
  Current            13,344      (766,327)    3,589,990    (3,140,097)
  Deferred          631,033       415,985     1,567,497     1,518,231
                -----------  ------------  ------------  ------------


  Total income tax
    provision
    (benefit)       644,377      (350,342)    5,157,487    (1,621,866)
                -----------  ------------  ------------  ------------


Income (loss) from
  continuing
  operations before
  discontinued
  operations        419,960    (3,519,244)    5,734,479    (3,540,820)
Income (loss) from
  operation of
  discontinued
  operations, net
  of tax             23,877             -       (19,129)            -
                -----------  ------------  ------------  ------------


Net income (loss) $ 443,837  $ (3,519,244)  $ 5,715,350  $ (3,540,820)
                ===========  ============  ============  ============



Diluted Income
  (loss) Per Share:
  Income (loss)
    from continuing
    operations before
    discontinued
    operations     $    .06     $   (0.53)     $    .81    $    (0.53)
  Discontinued
    operations            -             -             -          (.01)
                -----------  ------------  ------------  ------------


  Net income (loss)
    per share      $    .06     $   (0.53)     $    .81    $    (0.53)
                ===========  ============  ============  ============


Weighted Average
  Number of
  Shares
  Outstanding
  Used For
  Diluted Income
  (loss) Per
  Share           6,845,308     6,632,943     7,038,321     6,696,330