Eastman Announces Retirement of CFO and Polymers Business Group Head; Names New Senior Management Appointments

Business Wire, July 8, 2008

Espeland Named CFO

KINGSPORT, Tenn. -- Eastman Chemical Company (NYSE:EMN) today announced the retirement of two executives and several resulting senior management appointments that demonstrate the company's depth of management expertise. These new appointees will play key roles as the company executes its strategy that is expected to result in a doubling of its earnings per share over the next five years.

Richard A. Lorraine, 62, announced he will step down as senior vice president and chief financial officer, effective Sept.1, 2008. Lorraine will remain with the company until the end of the year performing in various roles and special projects.

"During his tenure with the company, Eastman has benefitted enormously from Rich's leadership, broad business experience and his strong disciplined approach to finance," said Brian Ferguson, chairman and chief executive officer. "He was instrumental in the process of making difficult decisions and implementing many of the strategic actions we have taken over the last five years. His many contributions will have a lasting impact on the company."

Gregory O. Nelson, 56, also announced his retirement as executive vice president and polymers business group head, effective Aug. 1, 2008.

"During the years I have known Greg, I have always admired the integrity he has consistently demonstrated, and for which he is widely known and respected," said Ferguson. "As a member of our senior leadership team, he most recently has led the polymers business group in a significant transformation focused on improving business results. He will be missed both personally and professionally."

"The appointments we're announcing as a result of these retirements demonstrate the depth and breadth of our leadership. Each of the people being appointed has the skills and experience to assume very important assignments that are essential to us delivering on our plans for growth."

Eastman announced the following appointments, effective Aug. 1, 2008, unless otherwise noted:

* Curtis E. Espeland, 44, will succeed Lorraine as senior vice president and chief financial officer, effective Sept. 1, 2008. Espeland is currently vice president, finance and chief accounting officer.

* Mark J. Costa, 42, will assume Nelson's position and become executive vice president, responsible for the polymers business group, as well as marketing. Costa is currently senior vice president, corporate strategy and marketing.

* Ronald C. Lindsay, 49, has been named senior vice president, corporate strategy and regional leadership. In this role, Lindsay will be responsible for the company's industrial gasification initiatives. Lindsay is currently senior vice president and chief technology officer.

* Norris P. Sneed, 52, has been appointed senior vice president and chief administrative officer, with responsibilities for human resources, communications and public affairs and information technology, effective Sept. 1, 2008. Sneed is currently senior vice president, human resources, communications and public affairs.

* Gregory W. Nelson, 45, will assume the position of senior vice president and chief technology officer. Nelson is currently vice president, corporate technology.

* Scott V. King, 39, will replace Espeland as chief accounting officer effective Sept. 1, 2008, in addition to continuing in his current position of vice president and controller.

James P. Rogers continues as president, Eastman Chemical Company, and chemicals and fibers business group head; Theresa K. Lee will continue as senior vice president, chief legal officer, and corporate secretary.

"This senior management team, consisting of both existing and new members, will ensure continuity of Eastman's strong leadership," said Ferguson. "I am confident that as a team, these highly skilled and talented individuals will maintain the outstanding performance of the company and continue the execution of our growth strategies."

Biographical and Related Information

Curtis E. Espeland - Since joining Eastman in 1996, Espeland has held multiple corporate and business finance positions of increasing responsibility. In addition to being the Chief Accounting Officer since 2002, he has led the financial activities of various business segments and geographical regions within the company. Most recently, Espeland was responsible for the financial strategies and transactions associated with the transformation of the polymers business group and the growth initiatives of the industrial gasification business. He also has served as the director of internal audit, director of planning and forecasting, and director of finance, Asia Pacific, based in Singapore. Before joining Eastman in 1996, Espeland was an audit and business advisory manager with Arthur Anderson LLP in the U.S., Australia and Europe.

Mark J. Costa - Since joining Eastman in 2006, Costa has led the company's corporate strategy work. He has been instrumental in developing business strategies, including the company's plans for growth through industrial gasification. Prior to joining Eastman, he was a senior partner within Monitor Group's integrated North American and global client service networks where he gained extensive experience as a consultant to senior executives across a broad range of industries, including the commodity and specialty chemicals sectors. In his new role, Costa will have responsibility for leading the execution of Eastman's growth strategies in its performance polymers and specialty plastics business segments. He will also continue to lead the company's marketing efforts which he has done since 2006.