A. Schulman board disagrees with Barington, Ramius that company should sell

By Lisa Kerner

Charlotte, N.C., Nov. 13 - A. Schulman, Inc.'s chairman of the board, president and chief executive officer Terry L. Haines said the board "vigorously opposes" proposals by Barington Cos. Equity Partners and Ramius Capital Group, LLC to sell the company and have their nominees elected to the company's board.

Haines made his statements in a letter to A. Schulman employees included in a form 8-K filing with the Securities and Exchange Commission.

Barington and Ramius hold some 9.2% and 7.4% of A. Schulman's outstanding shares, respectively.

Haines accused the New York-based investment groups of pursuing "their own slates and agendas."

"We continue to make great strides in transforming our business, and we believe we have the right strategy in place to grow our business and maximize shareholder value," the letter said.

On Oct. 25, Barington demanded that A. Schulman provide a listing of the company's stockholders and copies of certain A. Schulman books and records. The investment firm requested the information for investigative purposes and to communicate with A. Schulman stockholders regarding such matters as the use of corporate assets, the levels and types of compensation and certain decisions by the board.

On Oct. 22, Starboard Value and Opportunity Master Fund Ltd., an affiliate of RCG Starboard Advisors, LLC and Ramius Capital Group, nominated a slate of four independent candidates for election to A. Schulman's board of directors at the 2007 annual meeting.

Based in Akron, Ohio, A. Schulman manufactures and sells plastic resins and plastic compounds, including engineered flame-retardant compounds, thermoplastic elastomers and nylon compounds.

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