Cost-reduction actions taken by Eastman

) announced a series of actions to reduce costs while continuing to pursue plans for growth. In 2009, Eastman plans to reduce costs in excess of $100 million, with approximately $80 million in cuts from labor-related costs. This includes a recently completed reduction in management staff, elimination of overtime wherever possible, reduction in part-time labor and use of contractors, and elimination of salary increases. Actions are also being taken to reduce working capital, capital spending, and other nonlabor costs. Company locations outside the United States are taking similar cost-reducing actions.

“Given the sudden and dramatic deterioration of the global economy, we are slowing work on some of our projects as it makes sense to do so,” says Brian Ferguson, Eastman chairman and CEO. “We continue to believe, however, that the company is well positioned to weather this current economic crisis, and that we can successfully manage costs while pursuing our plans for growth.”