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(WELLMAN, INC. LOGO)


		Contact:		Michael Bermish Investor Relations Officer (732) 212 – 3321

FOR IMMEDIATE RELEASE

WELLMAN REPORTS THIRD QUARTER 2004 RESULTS

October 27, 2004, Shrewsbury, NJ – Wellman, Inc. (NYSE: WLM) today reported a net loss attributable to common stockholders for the quarter ended September 30, 2004 of $10.7 million, or $0.34 per diluted share, compared to a net loss attributable to common stockholders of $7.5 million, or $0.24 per diluted share, for the quarter ended September 30, 2003. For the first nine months of 2004, Wellman reported a net loss attributable to common stockholders of $46.4 million, or $1.47 per diluted share, compared to a net loss attributable to common stockholders of $1.5 million, or $0.05 per diluted share, for the same period in 2003.

Tom Duff, Wellman’s Chairman and Chief Executive Officer, stated, “The disappointing results for the quarter were primarily attributable to lower volumes and raw material margins in both of our business segments. Volumes decreased from second quarter levels due to competitive pressures and a seasonally slow third quarter. Margins decreased because we were unable to raise prices quickly enough to keep pace with the greater than expected increases in our raw material costs.”

The following table summarizes Wellman’s results for the five quarters ending with the third quarter of 2004.


(in millions, except per share data)	3Q 03			4Q 03			1Q 04			2Q 04			3Q 04

Net Sales	$	262.7		$	273.9		$	293.8		$	329.0		$	310.0
Gross Profit		16.5			10.6			17.4			23.3			14.5
SG&A Expenses		15.8			16.3			14.5			13.8			14.6

Operating Income (Loss) excluding Other Items		0.7			(5.7	)		2.9			9.5			(0.1	)
Other Items		4.8			144.5			42.0			1.9			1.9

Operating Income (Loss)		(4.1	)		(150.2	)		(39.1	)		7.6			(2.0	)
Interest Expense, net		2.4			3.4			7.5			10.1			10.5

Earnings (Loss) Before Income Taxes		(6.5	)		(153.6	)		(46.6	)		(2.5	)		(12.5	)
Income Tax Expense (Benefit)		(1.9	)		(55.5	)		(18.4	)		(1.0	)		(4.9	)

Net Earnings (Loss)		(4.6	)		(98.1	)		(28.2	)		(1.5	)		(7.6	)
Accretion (Including Beneficial Conversion Charge)		(2.9	)		(7.1	)		(3.0	)		(3.0	)		(3.1	)

Net Earnings (Loss) Attributable to Common Stockholders		($7.5	)		($105.2	)		($31.2	)		($4.5	)		($10.7	)
Diluted EPS		($0.24	)		($3.33	)		($0.99	)		($0.14	)		($0.34	)

These results include Other Items described in the table below and accretion relating to the Company’s preferred stock. The accretion in the fourth quarter of 2003 included a one-time non-cash beneficial conversion charge of $4.2 million that reduced net earnings attributable to common stockholders and was recorded when the Company’s preferred stock became convertible to common stock.

Other Items included in operating income (loss) for the same periods are comprised of the following:


(in millions)	3Q 03		4Q 03			1Q 04		2Q 04		3Q 04

Impairment Charge			$	135.3
Restructuring Charges	$	0.3		8.5		$	0.3	$	0.8	$	1.3
Provision for Uncollectible Accounts		3.3		0.1			0.3
Other Expense (Income), Net:
Legal Costs		1.2		1.8			1.2		1.1		1.3
Non-Capitalizable Financing Costs				2.2			40.2
Rebates from Antidumping Duties				(3.4	)						(0.7	)

Other Items	$	4.8	$	144.5		$	42.0	$	1.9	$	1.9

Historical Adjusted EBITDA and Post Financing Adjusted EBITDA

Keith Phillips, Wellman’s Chief Financial Officer, commented, “The financings we completed in February 2004 changed our capital structure and these changes affected Adjusted EBITDA, overall debt, depreciation and interest expense. We have provided the following information on changes to Adjusted EBITDA as a result of the February financings (“Financing Adjustments”) and additionally have provided information to compare EBITDA on a comparable basis for the most recent five quarters (“Post Financing Adjusted EBITDA”).”

We believe Adjusted EBITDA is an important financial measurement for the Company because it is commonly used to measure financial performance from a credit perspective and is an important factor in evaluating a business. Adjusted EBITDA is calculated by adding Net Earnings (Loss), Income Tax Expense (Benefit), Interest Expense, Depreciation & Amortization and Other Items listed in the table above, all of which were included in Net Earnings (Loss).

Since we believe investors and analysts use trends in analyzing a business and since our Adjusted EBITDA is not comparable before and after our February 2004 financings, we have provided information on Post Financing Adjusted EBITDA. This financial measure is calculated by adding Financing Adjustments and Adjusted EBITDA, and assumes that the February 2004 financings were completed before the start of the period.

The following table reconciles Net Earnings (Loss) to Adjusted EBITDA and to Post Financing Adjusted EBITDA for the five quarters ending with the third quarter of 2004.


(in millions)	3Q 03			4Q 03			1Q 04			2Q 04			3Q 04

Net Earnings (Loss)		($4.6	)		($98.1	)		($28.2	)		($1.5	)		($7.6	)
Income Tax Expense (Benefit)		(1.9	)		(55.5	)		(18.4	)		(1.0	)		(4.9	)
Interest Expense, net		2.4			3.4			7.5			10.1			10.5
Other Items		4.8			144.5			42.0			1.9			1.9
Depreciation & Amortization		14.0			14.1			16.7			18.1			18.0

Adjusted EBITDA		14.7			8.4			19.6			27.6			17.9
Financing Adjustments		7.9			8.0			3.4			0.0			0.0

Post Financing Adjusted EBITDA	$	22.6		$	16.4		$	23.0		$	27.6		$	17.9

Wellman’s assets and long-term debt increased at the time of the financing because part of the financing included the purchase of PET resin assets located at our Palmetto Plant that were leased under a sale and leaseback transaction entered into in 1999, the purchase of accounts receivable previously sold under an asset securitization program and the prepayment of a raw material contract. Refinancing these contractual obligations also increased Adjusted EBITDA since the Company no longer has certain cash operating expenses associated with these obligations. The chart below provides details of the Financing Adjustments that represent cash charges related to the contractual obligations that previously reduced operating income. There are no Financing Adjustments in the second and third quarters of 2004 because the new financings occurred in the middle of the first quarter.


(in millions)	3Q 03		4Q 03		1Q 04		2Q 04		3Q 04

Raw Material Contract	$	4.8	$	4.8	$	1.5	$	0.0	$	0.0
Asset Securitization		0.7		0.7		0.1		0.0		0.0
Sale and Leaseback Transaction		2.4		2.5		1.8		0.0		0.0

Financing Adjustments	$	7.9	$	8.0	$	3.4	$	0.0	$	0.0

Information on Cost Reduction Programs

In 2003, Wellman announced cost reduction programs, that are expected to be implemented through 2005, that would reduce annual controllable costs by approximately $35 million by the end of 2004 and by $41-$46 million at the end of 2005, compared to annualized second quarter 2003 levels. Tom Duff stated, “Wellman is on target to achieve these cost savings. Wellman has continued to successfully reduce these controllable costs and expects to have $27 million more in cost savings in 2004 than the level achieved at the end of 2003, which is an annualized cumulative cost savings of $37 million since the program was implemented at the end of the second quarter of 2003.”

Wellman, Inc. manufactures and markets high-quality polyester products, including PermaClear® and EcoClear® brand PET (polyethylene terephthalate) packaging resins and Fortrel® brand polyester fibers. One of the world’s largest PET plastic recyclers, Wellman utilizes a significant amount of recycled raw materials in its manufacturing operations.

Non-GAAP financial measures
This press release includes non-GAAP financial measures, as defined by the Securities and Exchange Commission. Specifically, management believes Adjusted EBITDA and Post Financing Adjusted EBITDA as defined on the Company’s web site are important measures used by investors, analysts and financial institutions to evaluate the Company’s performance. Adjusted EBITDA is calculated by adding Net Earnings (Loss), Income Tax Expense (Benefit), Interest Expense, Depreciation, Amortization and certain other items listed in “Other Items” above, all of which were included in Net Earnings (Loss). Post Financing Adjusted EBITDA is calculated by adding to Adjusted EBITDA the Financing Adjustments that would have changed EBITDA if the financings in place September 30, 2004 were in place in earlier periods.

Webcast of Conference Call
Wellman, Inc. will conduct a conference call, to review 3Q 2004 results at 1:00 p.m. DST on Thursday, October 28, 2004. This call is available in a live Webcast on the Wellman, Inc. web page. To access the Webcast, log onto the Wellman, Inc. website at: http://www.wellmaninc.com, go to the Investor Relations page and follow the prompts. Replay of the Webcast will be available late afternoon October 28, 2004 and will remain on the website for 7 days. The replay can be accessed by following the same procedure used to access the live Webcast. Presentation slides for the conference call will be available at 1:00 p.m. Thursday, October 28, 2004 on the Wellman, Inc. website Investor Relations page under the Webcasts and Conferences section as well as part of the live webcast. During the presentation, certain non-GAAP terms may be used. An explanation of these terms can be found on the Wellman, Inc. website, in the Financial Glossary section of the Investor Relations page. To access the Investor Relations page of our website, follow the same procedures used to access the Webcast.

Forward-Looking Statements
Statements contained in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as “believes,” “expects,” “anticipates,” and similar expressions are intended to identify forward-looking statements. These statements are made as of the date hereof based upon current expectations and we undertake no obligation to update the information contained herein. These forward-looking statements involve certain risks and uncertainties, including but not limited to: reduced raw material margins; the financial condition of our customers; fiber and textile imports; availability and cost of raw materials; the impact of litigation arising out of alleged pricing practices in the polyester staple fiber industry; availability of financing, changes in financial markets, interest rates, credit ratings, and foreign currency exchange rates; regulatory changes; tax risks; U.S., European, Asian and global economic conditions; prices and volumes of imports; work stoppages; levels of production capacity and profitable operation of assets; prices of competing products; natural disasters and acts of terrorism; and maintaining the operations of our existing production facilities. Actual results may differ materially fro those expressed herein. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results may result in fluctuations in the price of our common stock. For a more complete description of the prominent risks and uncertainties inherent in our business, see our Form 10-K for the year ended December 31, 2003.

#####

Wellman, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)
(In Millions, except per share data)


	September 30,			December 31,			March 31,			June 30,			September 30,
	2003			2003			2004			2004			2004
Net Sales	$	262.7		$	273.9		$	293.8		$	329.0		$	310.0
Cost of Sales		246.2			263.3			276.4			305.7			295.5

Gross Profit		16.5			10.6			17.4			23.3			14.5
Selling, General and Administrative Expenses		15.8			16.3			14.5			13.8			14.6
Impairment Charge		—			135.3			—			—			--
Restructuring Charges		0.3			8.5			0.3			0.8			1.3
Provision for uncollectible accounts		3.3			0.1			0.3			—			--
Non-Capitalizable Financing Costs		—			2.2			40.2			—			--
Other Expense (Income), Net		1.2			(1.6	)		1.2			1.1			0.6

Operating Income (Loss)		(4.1	)		(150.2	)		(39.1	)		7.6			(2.0	)
Interest Expense, Net		2.4			3.4			7.5			10.1			10.5

Earnings (Loss) Before Income Taxes		(6.5	)		(153.6	)		(46.6	)		(2.5	)		(12.5	)
Income Tax Benefit		(1.9	)		(55.5	)		(18.4	)		(1.0	)		(4.9	)

Net Earnings (Loss)		($4.6	)		($98.1	)		($28.2	)		($1.5	)		($7.6	)

Net Earnings (Loss) Attributable to Common Stockholders:
Net Earnings (Loss)		($4.6	)		($98.1	)		($28.2	)		($1.5	)		($7.6	)
Accretion of Preferred Stock & Beneficial Conversion Charge		(2.9	)		(7.1	)		(3.0	)		(3.0	)		(3.1	)

Net Earnings (Loss) Attributable to Common Stockholders		($7.5	)		($105.2	)		($31.2	)		($4.5	)		($10.7	)

Basic and Diluted Net Loss Per Common Share:
Net Earnings (Loss) Attributable to Common Stockholders		($0.24	)		($3.33	)		($0.99	)		($0.14	)		($0.34	)

Average Common Shares — (Basic)		31.6			31.6			31.6			31.6			31.6
Average Common Shares — (Diluted)		31.6			31.6			31.6			31.6			31.6

WELLMAN, INC.
SUPPLEMENTAL INFORMATION*


SALES BY GROUP	3Q 03		4Q 03		1Q 04		2Q 04		3Q 04
(Millions $)
Packaging Products Group	$	144	$	154	$	162	$	190	$	174
Fibers & Recycled Products Group	$	119	$	120	$	132	$	139	$	136

Total Sales	$	263	$	274	$	294	$	329	$	310


BALANCE SHEET DATA	9/30/2004
(Millions $)
Accounts Receivable	$	155
Inventories	$	135
Debt, Net	$	464
Stockholders’ Equity	$	420


CASH FLOW DATA
(Millions $)	3Q 04		YTD 2004
Depreciation	$	14	$	42
Amortization	$	5	$	13

Total D&A	$	19	$	55
Cap. Exps.	$	3	$	7


SEGMENT PROFIT (LOSS)	1Q 04			2Q 04		3Q 04
(Millions $)
PPG	$	4		$	8	$	2
FRPG		($1	)	$	1		($2	)

Operating Income (Loss)	$	3		$	9	$	0


CONFERENCE CALL INFO		*Preliminary

Wellman, Inc. will host a conference call to review 3Q 2004 results on Thursday, October 28, 2004 at 1:00 p.m. DST.

You are invited to listen to the live Webcast of the conference call by logging onto Wellman, Inc.’s home page http://www.wellmaninc.com, go the Investor Relations page, and follow the prompts.

To participate in the call, dial (800) 789-1044 domestically, or for international calls (706) 634-1406 several minutes before start time. You will need passcode 1268060 to access the call. If you are unavailable for the conference call, a taped replay will be available late afternoon October 28, 2004 and will remain on the website for 7 days. Dial (800) 642-1687 domestically, or for international calls (706) 645-9291, to listen to the replay. You will need passcode: 1268060 to access the replay.

The call and related documents contain copyrighted material. It cannot be recorded, rebroadcast or reprinted without Wellman’s express permission. Participation implies consent to the taping and above terms.