PONR Pioneer Companies New 2/02 (MM)

Pioneer Announces the Prepayment and Redemption of Certain Debt HOUSTON, July 11 /PRNewswire-FirstCall/ -- Pioneer Companies, Inc. (NASDAQ:PONR) announced today that its subsidiary, Pioneer Americas LLC, will be prepaying and redeeming all of the Senior Secured Floating Rate Guaranteed Notes due 2006 and Senior Floating Rate Term Notes due 2006 that remain outstanding. The notes, which had an original aggregate principal amount of $50 million, were issued on December 31, 2001. Pioneer's voluntary redemption of the $6.1 million in Senior Secured Floating Rate Guaranteed Notes due 2006 that is now outstanding will occur on the redemption date of August 22, 2005, while the voluntary prepayment of the $0.8 million in Senior Floating Rate Term Notes due 2006 that is now outstanding will occur on July 13, 2005. The payments, which will also include interest accrued to the indicated dates, will be made out of Pioneer's existing cash reserves. Pioneer, based in Houston, manufactures chlorine, caustic soda, bleach, hydrochloric acid and related products used in a variety of applications, including water treatment, plastics, pulp and paper, detergents, agricultural chemicals, pharmaceuticals and medical disinfectants. Pioneer owns and operates four chlor-alkali plants and other downstream manufacturing facilities in North America. Certain statements in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. Forward- looking statements relate to matters that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, the risks and uncertainties described in Pioneer's filings with the Securities and Exchange Commission. Actual outcomes may vary materially from those indicated by the forward-looking statements. DATASOURCE: Pioneer Companies, Inc. CONTACT: Gary Pittman of Pioneer Companies, Inc., +1-713-570-3200 Web site: http://www.piona.com/

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