PPG posts record fourth quarter, full year sales for 2006

Feb. 12, 2007 – PPG Industries (NYSE:PPG), a world leading coatings, glass and chemicals manufacturer, has recently announced record fourth quarter and full year sales for 2006. Sales in the fourth quarter were $2.8 billion, surpassing fourth quarter 2005 record sales by 11 percent. For all of 2006, PPG recorded annual sales of 11 billion and net income of $711 million.

PPG is globally experiencing an unprecedented period for growth and reported record sales. In 2006, it achieved double-digit percentage sales increases and robust earnings growth in Coatings and Optical Products businesses. The full year financial results continue to validate PPG’s strategies and clearly illustrate that it is delivering global profitable growth.

When talking about the outlook of 2007, Charles E. Bunch, chairman and chief executive officer of PPG said: “At PPG, we expect to continue capitalizing on global economic environment with organic growth, especially in emerging regions such as China. Our 2006 acquisitions will provide meaningful sales and earnings growth in 2007. Additionally, while we are pleased with recent trends, we continue to work very hard in several of our businesses that are underperforming. In 2007, we will aggressively explore all alternatives for these businesses with the ultimate goal of maximizing shareholder value. “

“We had nearly 45 percent growth of record sales in Asia. To accelerate our growth, PPG has made 12 acquisitions in 2006, and 9 of them are related to Asia-Pacific area, while in the previous year it only made 4 acquisitions globally.” said Viktor R. Sekmakas, Asia Pacific President of PPG. “PPG leadership team has been taking actions to drive profitable growth in fast growing markets like China, examples of actions include expanding production capacity in Tianjin and Guangzhou, and by acquisitions. I believe with our strategic directions of Growth, Leadership and Innovation, we will be No. 1 in all the markets we serve！”

China is an important component of PPG’s global strategy, besides the ownership of 1 coatings plant in Tianjin, 3 in Suzhou,1 fiber glass Joint Venture plant in Kunshan and Zibo each, PPG has gained the land usage rights of 3 pieces of land in Tianjin, Zhangjiagang and Guangzhou, each is about 60,000 m2 and it has exciting investment plans to further increase its capacity and market share here in China.

Having paid uninterrupted dividends for 107 years since 1899, PPG once again raised its dividend, marking 36 consecutive years of increasing dividend payments. As evidenced in 2006, it will remain committed to using its consistent track record of cash generation for the ongoing benefit of its shareholders. Moving forward, PPG regards stronger organic growth as a result of its ongoing ability to meet or exceed customers’ requirements.

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Notes for editors

About PPG：

PPG Industries Inc. was founded in 1883 in Pittsburgh, USA. As a global manufacturing enterprise, it produces and sells coatings, glass, fiber glass, and chemicals and holds a leading position in the above areas. Up to now, PPG has set up more than 100 production facilities that employ approximately 30,800 employees in 21 countries. PPG has been listed on Fortune 500 for 51 years and is the world’s leading manufacturer of transportation coatings including automotive coatings, aerospace coatings; as well as the world’s leading manufacturer of architectural, industrial and packaging coatings. Each year, PPG invests millions of dollars in developing products, processes, and the newest technology to meet the market requirements. PPG is one of the few publicly traded companies to pay its shareholders dividends continually since 1899, and has paid increased shares to shareholders for 35 consecutive years. PPG boasts of not just first class products but also unique cooperate culture which prides its employees. According to Fortune, PPG ranked No. 1 in the “Global Most Admired”, chemical industries in 2004.

PPG is also one of the few global coatings companies that first invested in China in the 1980s. In China, PPG produces and sells seven major products, including automotive coatings, industrial coatings, automotive refinishing coatings, packaging coatings, aerospace coatings, architectural coatings, and fiber glass. PPG has seven manufacturing plants combined in Tianjin, Suzhou, Kunshan, Zibo, and trading companies, offices, labs and training centers in Beijing, Shanghai, Suzhou, Guangzhou, and Shenzhen. So far in China PPG has invested more than USD300 million and has more than 2,700 employees; in the Asia-Pacific region, the number of employees exceeds 6,700.

In China, the main customers of PPG Automotive coatings include GM, GE, Mercedes-Benz, Dongfeng Citroen, Dongfeng Peugeot, Chery, and Hainan Mazda. Nearly all auto manufacturers use PPG automotive coatings and technology. PPG Automotive Refinish ranks No. 1 in China auto refinish and passenger car markets. In 2005, 70% of China’s more than 200,000 police wagons were refinished by PPG professional auto paints. As for packaging coatings, PPG provides coatings to such well-known international and domestic companies including Coca Cola, Pepsi, Lulu and Wangwang. PPG provides aerospace coatings to customers including Boeing, Air China, Southern Air and China Eastern. Air China is using PPG coatings for the three 2008 Olympics aircraft and China Eastern plans to use PPG coatings for its 2010 World Expo aircraft.

In addition, PPG provides industrial coatings to various companies including Haier, Nokia, Motorola, Whirlpool and Dell. PPG architectural coatings are widely used in many well-known structures including those in Tian Anmen Square and the flag post, Beijing Oriental Plaza, Beijing International Exhibition Center, Beijing International Airport, the Shanghai Jinmao Building, Shanghai Pudong International Airport, Shanghai Oriental Pearl Tower, Guangzhou Baiyun International Airport, Tianjin Jinhuang Building and Taida Building.

PPG’s fiber glass business entered China’s marketplace in the 1980s and established manufacturing sites in Taiwan Jiayi, Jiangsu Kunshan and Shandong Zibo. In March 2006, the world’s largest fiber glass furnace, costing $120 million, was put to production in Kunshan, boasting more than 70 thousands tons of output. In 2006, PPG invested jointly with Sinoma in Zibo to launch a fiber glass plant that will have more than 200,000 tons of annual output. A research-and-development (R&D) center in Suzhou is being planned to support PPG customers in the Asia-Pacific region.

PPG’s fiber glass business has nine world-wide manufacturing sites, four R&D centers and a network of sales and technical support professionals. It manufactures continuous-strand fiber glass products which include chopped strand, direct draw, yarn, assembled roving and rolled goods. These products are used in a wide range of applications in the transportation, energy, construction and electronic markets and in many other industries.

In R&D, PPG invests millions of dollars each year to develop, improve products, process and technologies to adapt to the new markets. Thirty-five percent of the company’s sales are from products that are less than four years old. Since 1996, PPG has received 6 R&D 100 Award presented by R&D Magazine for the most significant technology-related new products and processes.

Some significant achievements in R&D include:

– pioneered cationic electrodeposition automotive primers that have virtually eliminated rust

– developed barrier coatings to improve product shelf life and retain carbonation in beverages bottled in plastics

– introduced plastic photochromic eyewear lenses that automatically darken in sunlight

– formulated key pharmaceutical intermediates used for the critical treatment of life-threatening diseases

– introduced revolutionary insulated glass technology for residential doors and windows

– commercialized the world’s first powder clear-coat finish for cars

– developed resin-compatible fiber glass yarn for the electronics industry

For more details, please contact:

EMG China

Gloria Wu

T: +86 21 5887 8007 ext 112

gwu@emgchina.com