PPG Reaches Agreement with Nippon Electric Glass for Sale of Remaining Fiberglass Operations

PITTSBURGH–(BUSINESS WIRE)–$PPG #NEG–PPG (NYSE:PPG) today announced that it has reached a definitive
agreement to sell its remaining fiberglass operations to Nippon Electric
Glass Co. Ltd. (NEG), a leading manufacturer of fiberglass. The
transaction is expected to close in the second half of 2017, subject to
customary closing conditions. Pre-tax proceeds from the sale are
approximately $545 million, and are subject to customary closing
adjustments.

PPG’s remaining fiberglass operations include manufacturing facilities
in Chester, South Carolina, and Lexington and Shelby, North Carolina;
and administrative and research-and-development operations in Shelby and
in Harmar, Pennsylvania, near Pittsburgh. The business, which employs
more than 1,000 people and had net sales of approximately $350 million
in 2016, supplies the transportation, energy, infrastructure and
consumer markets.

In 2016, PPG completed the sale of its European fiberglass operations to
NEG and divested its ownership interests in two Asian fiberglass joint
ventures. PPG also completed the sale of its North American flat glass
business in 2016.

“We considered all of the strategic alternatives for the business and
factored potential impacts to stakeholders. We are pleased that these
operations will become part of NEG, a company that is focused on
fiberglass as a core business,” said Michael H. McGarry, PPG chairman
and chief executive officer. “This transaction represents the end of
PPG’s history as a manufacturer of fiberglass and is the final action in
our disciplined, multiyear strategy to divest non-core businesses. Going
forward, we will continue to focus on growing our paints, coatings and
specialty materials businesses. I want to personally thank our
fiberglass employees for their contributions and dedicated support of
PPG, and wish them well as they establish the North American fiberglass
business of NEG.”

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

At PPG (NYSE:PPG), we work every day to develop and deliver the paints,
coatings and materials that our customers have trusted for more than 130
years. Through dedication and creativity, we solve our customers’
biggest challenges, collaborating closely to find the right path
forward. With headquarters in Pittsburgh, we operate and innovate in
more than 70 countries and reported net sales of $14.8 billion in 2016.
We serve customers in construction, consumer products, industrial and
transportation markets and aftermarkets. To learn more, visit www.ppg.com.

Forward-Looking Statements

Statements in this news release relating to matters that are not
historical facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 reflecting the
company’s current view with respect to future events or objectives and
financial or operational performance or results. The forward-looking
statements contained herein include statements relating to the timing of
and expected benefits of the NEG transaction. Actual events may differ
materially from current expectations and are subject to a number of
risks and uncertainties, including the satisfaction of the conditions of
the transaction and other risks related to completion of the transaction
and actions related thereto; the parties’ ability to complete the
transaction on the anticipated terms and schedule; and the other risks
and uncertainties 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. Forward-looking statements speak
only as of the date of their initial issuance, and PPG Industries does
not undertake any obligation to update or revise publicly any
forward-looking statement, whether as a result of new information,
future events or otherwise.

We protect and beautify the world is a trademark and the PPG
Logo is a registered trademark of PPG Industries Ohio, Inc.

Contacts

PPG Media Contact:
Mark Silvey, +1-412-434-3046
Corporate
Communications
[email protected]
or
PPG
Investor Contact:
Scott Minder, +1-412-434-3466
Investor
Relations
[email protected]
investor.ppg.com