Stillwater Corporation has announced immediate plans to restructure its operations and reduce and redeploy portions of its workforce. The move is largely focused on its East Boulder Mine operations south of Big Timber, although the Stillwater Mine at Nye, Columbus Metallurgical operations, and administrative offices in Columbus and Billings are also affected.

The action follows the previously announced decision to review all operations in the face of the rapid third quarter deterioration in economic conditions during which prices for palladium and platinum fell more than 60% from levels earlier in 2007.

Mr Francis R McAllister chairman & CEO of Stillwater said that "The restructuring we are announcing is the result of a thoughtful and carefully planned process intended to ensure the long term sustainability of the Company. We have great people and a great workforce that we wish to preserve to the extent possible. We regret the adjustments will require reductions and redeployment of some of our employees. While the adjustments are unavoidable under the current market conditions, they are designed to preserve the Company's operating options, improve our competitive position and enhance our resilience to market price volatility for platinum group metals."

Mr McAllister also said that "Stillwater is providing the required 60 day WARN notice to all 526 employees at its East Boulder Mine, pursuant to the Worker Adjustment and Retraining Notification Act and is notifying the appropriate government entities. East Boulder Mine employees have been directed not to report to work unless and until they are advised otherwise, while it discusses its plans for the East Boulder operations with Union representatives.”

Emphasizing the extent of the restructuring, Mr McAllister added that "Our objective at current prices is to manage for positive cash flow to maintain adequate liquidity in the face of the lower platinum group metals prices. We are reviewing the cost of all business activities and paring capital, operating, support and corporate expenditures to those essential to the restructured operation.”