PPG's First Quarter Sales Increase 41 Percent, Setting All-Time Record

SigmaKalon Acquisition, Global Presence Bolster Growth Despite
Difficult U.S. Economy
PITTSBURGH--(Business Wire)--
PPG Industries (NYSE:PPG) today reported record sales for the
first quarter of $3.7 billion, surpassing the prior year's first
quarter results by 41 percent. First quarter net income was $100
million, or 61 cents per share, comprising net income from continuing
operations of $87 million, or 53 cents per share, and income from
discontinued operations, net of tax, of $13 million, or 8 cents per
share.

Reported net income from continuing operations includes
non-recurring acquisition-related costs of $89 million aftertax, or 54
cents per share, stemming from the company's Jan. 2, 2008, acquisition
of the SigmaKalon Group. Adjusted net income from continuing
operations was $176 million, or $1.07 per share, as detailed below.
The company's tax rate on income from continuing operations for the
quarter was 30 percent.

PPG's sales for the first quarter 2007 were $2.6 billion. First
quarter net income was $194 million, or $1.17 per share, comprising
net income from continuing operations of $176 million, or $1.06 per
share, and income from discontinued operations, net of tax, of $18
million, or 11 cents per share. Net income from continuing operations
included an aftertax charge of $5 million, or 3 cents per share, to
reflect the net increase in the value of the company's obligation
under its proposed asbestos settlement agreement, which is subject to
pending court proceedings. Adjusted net income from continuing
operations was $181 million, or $1.09 per share. The company's tax
rate on income from continuing operations was 23 percent.

"We are very pleased to have delivered solid organic growth
despite a slowdown in the overall U.S. economy," said Charles E.
Bunch, PPG chairman and chief executive officer. "We achieved this
growth due, in part, to our prior investments in coatings, optical
products and emerging regions, which have strengthened our overall
portfolio. In addition, the recent acquisition of SigmaKalon
contributed to our record first quarter results. This business, which
we are successfully integrating, has exceeded our expectations."

Bunch noted that a key measure of the company's growth is its
total business segment earnings, which increased 17 percent.

"Looking ahead, while we will likely continue to experience a
difficult North American economy, we remain confident in our ability
to grow both sales and earnings. This is due to our leading products
and technologies, and because we have significantly broadened our
geographic presence. In fact, the United States and Canada now account
for only about 45 percent of our total sales," Bunch said. "We are
focused on improving our already strong cash generation, and we intend
to use this cash to continue to grow earnings, initially through
paying down debt."

Performance Coatings segment sales in the first quarter increased
$259 million, or 30 percent, as a result of the SigmaKalon and
Barloworld acquisitions, the positive impact of stronger foreign
currencies, increased selling prices and improved volumes. Segment
earnings were comparable to last year, as favorable manufacturing
costs and currency were offset by growth-related expenses. Stronger
price gains were offset by inflation in raw materials, transportation
and other costs.

Industrial Coatings segment sales for the quarter increased $189
million, or 22 percent, as a result of the SigmaKalon acquisition,
stronger foreign currencies and improved volumes in all businesses.
The segment experienced volume declines in North America that were
more than offset by improved volumes in all other regions. Segment
earnings were flat. The positive impact of higher sales volumes,
stronger foreign currencies, acquisitions and lower manufacturing
costs were offset by inflation and higher costs to support growth.

Architectural Coatings EMEA (Europe, Middle East and Africa) is a
newly formed segment comprising about 70 percent of acquired
SigmaKalon sales. Segment sales for the quarter were $536 million.
Historically, first quarter sales have represented about 20 percent of
the annual sales of this business, and the level in 2008 reflects low-
to mid-single-digit growth year over year, excluding the favorable
impact of currency. Segment earnings were $9 million, which included
most of the $20 million of amortization expense related to acquired
intangible assets.

Optical and Specialty Materials segment sales for the quarter
increased $44 million, or 18 percent, as a result of improved volumes,
particularly in the optical products business. Stronger foreign
currencies and increased selling prices also added to growth. Segment
earnings were up $11 million due to higher sales volumes and despite
higher advertising expenses related in part to the launch of
Transitions Optical's next-generation lens product.

Commodity Chemicals segment sales for the quarter increased $52
million, or 14 percent, due primarily to increased selling prices.
Segment earnings improved by $24 million, as higher selling prices and
lower manufacturing costs more than offset the impact of inflation.

Glass segment sales increased $8 million, or 3 percent, based on
the positive impact of stronger foreign currencies and increased
selling prices. These were slightly moderated by lower sales volumes.
Segment earnings improved by $13 million due to lower manufacturing
costs. The absence of a prior year write-off of an investment in a
fiber glass joint venture offset the negative impact of inflation.

About PPG

Pittsburgh-based PPG is a global supplier of paints, coatings,
chemicals, optical products, specialty materials, glass and fiber
glass. The company has more than 150 manufacturing facilities and
equity affiliates and operates in more than 60 countries. PPG's sales
in 2007 were $11.2 billion. SigmaKalon, a worldwide coatings producer
based in Uithoorn, Netherlands, that PPG acquired Jan. 2, 2008, had
2007 sales of $2.9 billion. PPG shares are traded on the New York
Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.

Additional Information

Financial commentary from William H. Hernandez, senior vice
president, finance, and chief financial officer, regarding first
quarter 2008 results may be heard by telephone at 412-434-2816 until 5
p.m. ET on Friday, April 25. The commentary will also be available on
PPG's Web site (www.ppg.com) at Investor Center, 1st Qtr Financial
Commentary. The commentary may include forward-looking statements or
other material information. Additional information, including
historical performance, is also available at Investor Center on PPG's
Web site.

Forward-Looking Statements

Statements in this news release relating to matters that are not
historical facts are forward-looking statements reflecting the
company's current view with respect to future events or objectives and
financial or operational performance or results. These matters involve
risks and uncertainties as discussed in PPG Industries' periodic
reports on Form 10-K and Form 10-Q, and its current reports on Form
8-K, filed with the Securities and Exchange Commission. Accordingly,
many factors could cause actual results to differ materially from the
company's forward-looking statements.

Among these factors are increasing price and product competition
by foreign and domestic competitors, fluctuations in cost and
availability of raw materials and energy, the ability to maintain
favorable supplier relationships and arrangements, difficulties in
integrating acquired businesses and achieving expected synergies there
from, economic and political conditions in international markets,
foreign exchange rates and fluctuations in such rates, the impact of
environmental regulations, unexpected business disruptions and the
unpredictability of possible future litigation, including litigation
that could result if the asbestos settlement discussed in PPG's
filings with the SEC does not become effective. However, it is not
possible to predict or identify all such factors. Consequently, while
the list of factors presented here is considered representative, no
such list should be considered to be a complete statement of all
potential risks and uncertainties. Unlisted factors may present
significant additional obstacles to the realization of forward-looking
statements.

Consequences of material differences in results as compared with
those anticipated in the forward-looking statements could include,
among other things, business disruption, operational problems,
financial loss, legal liability to third parties and similar risks,
any of which could have a material adverse effect on PPG's
consolidated financial condition, operations or liquidity.

Discontinued Operations

In the third quarter 2007, PPG signed agreements to sell its
automotive OEM glass and automotive replacement glass and services
businesses, now collectively called the automotive glass and services
(AG&S) businesses, as well as its fine chemicals business. The sale of
the fine chemicals business closed in the fourth quarter 2007. The
contract the company had entered into to sell its AG&S businesses has
been terminated. The company intends to sell the AG&S businesses in
2008. As a result of these actions, historical financial results for
the fine chemicals and AG&S businesses are reported as discontinued
operations.

Regulation G Reconciliation

PPG Industries believes investors' understanding of the company's
operating performance is enhanced by the disclosure of net income and
earnings per share adjusted for nonrecurring charges and earnings,
which PPG's management considers useful in providing insight into the
company's ongoing operating performance because it excludes the impact
of items that cannot reasonably be expected to recur on a quarterly
basis. Net income and earnings per share adjusted for these
nonrecurring items are not recognized financial measures determined in
accordance with United States generally accepted accounting principles
("GAAP") and should not be considered a substitute for net income or
earnings per share or other financial measures as computed in
accordance with GAAP. In addition, net income and earnings per share
adjusted for the nonrecurring items may not be comparable to similarly
titled measures as reported by other companies. The following is a
reconciliation of reported and adjusted net income and earnings per
share for the first quarter 2008 and 2007:

-0-
*T
Regulation G Reconciliation - Results From Operations
($ in millions, except per-share amounts)
Continuing Discontinued Total
----------------------------------
First Quarter - 2008 $ EPS $ EPS $ EPS
---- ----- ------ ----- ---- -----
Net Income as Reported $87 $0.53 $13 $0.08 $100 $0.61
Acquisition-Related Costs 89 0.54 - - 89 0.54
----------------------------------
Adjusted Net Income $176 $1.07 $13 $0.08 $189 $1.15
==================================

Continuing Discontinued Total
----------------------------------
First Quarter - 2007 $ EPS $ EPS $ EPS
---- ----- ------ ----- ---- -----
Net Income as Reported $176 $1.06 $18 $0.11 $194 $1.17
Asbestos Settlement - Net 5 0.03 - - 5 0.03
----------------------------------
Adjusted Net Income $181 $1.09 $18 $0.11 $199 $1.20
==================================
*T

-0-
*T
PPG INDUSTRIES AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENT OF OPERATIONS (unaudited)
(All amounts in millions except per-share data)
3 Months Ended
March 31
2008 2007
--------------

Net sales $3,720 $2,632
Cost of sales, exclusive of depreciation and
amortization (Note A) 2,424 1,677
Selling and other 933 583
Depreciation 107 78
Interest 66 22
Amortization 34 14
Asbestos settlement - net - 9
Other - net (Note B) (6) (2)
----------------------------------------------------------------------
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST (Notes
A and B) 162 251
Income tax expense 49 57
Minority interest 26 18
----------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS 87 176
Income from discontinued operations, net of tax 13 18
----------------------------------------------------------------------
NET INCOME $ 100 $ 194
======================================================================

Earnings per common share
Income from continuing operations $ 0.53 $ 1.07
Income from discontinued operations $ 0.08 $ 0.11
----------------------------------------------------------------------
NET INCOME $ 0.61 $ 1.18
======================================================================

Earnings per common share - assuming dilution
Income from continuing operations $ 0.53 $ 1.06
Income from discontinued operations $ 0.08 $ 0.11
----------------------------------------------------------------------
NET INCOME $ 0.61 $ 1.17
======================================================================

Average shares outstanding 164.5 164.6
======================================================================

Average shares outstanding - assuming dilution 165.6 165.9
======================================================================
*T

-0-
*T
Note A:
Includes expense of $94 million in the three months ended March
31, 2008 for the flow-through cost of sales of the step up to
fair value of inventory related to the SigmaKalon acquisition.

Note B:
Includes expense of $23 million in the three months ended March
31, 2008 for the write-off of in-process research and
development related to the SigmaKalon acquisition.

*T

-0-
*T
BALANCE SHEET HIGHLIGHTS (unaudited)

March 31 December 31
2008 2007
----------------------
(millions)
Current assets:
Cash and cash equivalents $ 298 $ 526
Cash held in escrow (Note A) 12 1,706
Receivables - net (Note B) 3,433 2,398
Inventories (Note B) 1,977 1,368
Other (Note B) 722 650
Assets held for sale 507 488
----------------------
Total current assets $ 6,949 $ 7,136
======================

Current liabilities:
Short-term debt and current portion of long-
term debt $ 805 $ 1,819
Asbestos settlement 579 593
Accounts payable and accrued liabilities (Note
B) 3,003 2,150
Liabilities of businesses held for sale 105 99
----------------------
Total current liabilities $ 4,492 $ 4,661
======================

---------- -----------
Long-term debt $ 3,639 $ 1,201
======================
*T

-0-
*T
Note A:
Includes $1,673 million that was borrowed late in the fourth
quarter 2007 to finance the SigmaKalon acquisition and was
held in escrow at December 31, 2007 and released from escrow
when the transaction closed on January 2, 2008.

Note B:
Receivables - net, inventories and other current assets less
accounts payable and accrued liabilities acquired as part of
SigmaKalon on January 2, 2008 totaled $460 million.

*T

-0-
*T
BUSINESS SEGMENT INFORMATION (unaudited)

3 Months Ended
March 31
2008 2007
------------------
(millions)

Net sales
Performance Coatings $ 1,114 $ 855
Industrial Coatings 1,058 869
Architectural Coatings EMEA 536 -
Optical and Specialty Materials 295 251
Commodity Chemicals 423 371
Glass 294 286
----------------------------------------------------------------------
TOTAL $ 3,720 $2,632
======================================================================

Segment income
Performance Coatings $ 120 $ 121
Industrial Coatings 95 95
Architectural Coatings EMEA 9 -
Optical and Specialty Materials 74 63
Commodity Chemicals 68 44
Glass 19 6
------------------
TOTAL 385 329
Legacy costs (Note A) (10) (11)
Acquisition - related costs (Note B) (117) -
Asbestos settlement - net - (9)
Interest - net (Note C) (59) (19)
Unallocated stock based compensation (Note D) (9) (9)
Other unallocated corporate expense (28) (30)
INCOME BEFORE INCOME TAXES AND MINORITY
----------------------------------------------------------------------
INTEREST $ 162 $ 251
======================================================================
*T

-0-
*T
Note A:
Legacy costs include current costs related to former operations
of the Company, including certain environmental remediation,
pension and other postretirement benefit costs and certain
charges which are considered to be unusual or non-recurring.

Note B:
Represents costs related to the SigmaKalon acquisition,
including $94 million of the flow-through cost of sales of the
step up to fair value of acquired inventory and $23 million
for the write-off of in-process research and development.
These costs are considered to be unusual and non-recurring and
will not reduce the segment earnings used to evaluate the
performance of the operating segments.

Note C:
The increase in Interest - net for the three months ended March
31, 2008 as compared to March 31, 2007 is due to increased
interest costs related to the financing of the SigmaKalon
acquisition.

Note D:
Unallocated stock based compensation includes the cost of stock
options, restricted stock units and contingent share grants
which are not allocated to the operating segments.
*T

PPG Industries
Jack Maurer, 412-434-2181
jmaurer@ppg.com
or
Investors:
Vince Morales, 412-434-3740
vmorales@ppg.com

Copyright Business Wire 2008