News Release Details

Boston, MA - The Board of Directors of Cabot Corporation (NYSE: CBT) announced today that Samuel W. Bodman has announced his intention to retire as Chairman and Chief Executive Officer of Cabot Corporation. Mr. Bodman will step down as CEO immediately and will retire as Chairman in May. The Board of Directors has elected Kennett F. Burnes, President and Chief Operating Officer, to succeed Mr. Bodman as CEO, effective today. Mr. Burnes will remain President.

Mr. Robert Henderson, speaking for the Board, said "We want to extend our best wishes to Sam. He has been a most able and wise Chairman and Chief Executive who has led this company through tremendous change. His vision has created one of the most successful chemical companies in the country by any measure. Ken Burnes has worked at Sam's side for the last 14 years. He has been a major factor in the successful implementation of Cabot's vision and strategy. Ken has the unanimous support of the Board as he steps into his new role."

Mr. Burnes began his career at Cabot in 1987 as General Counsel and was named President and Chief Operating Officer in 1994.

In connection with Mr. Bodman's retirement benefits, the Company will incur a charge to earnings in the second quarter of fiscal year 2001 of approximately $15 to 16 million, consisting of an approximately $5 million cash portion, representing the purchase of a retirement annuity, with the balance being a non-cash charge in connection with the early vesting of restricted stock previously awarded under Cabot's long-term incentive plan.