Clariant Reports Improved Operating Margin in t...

--  Sales up 4% in local currency and down 2% in CHF due to currency effects

    --  Price increases of 5% fully compensate for an 11% increase in raw
        material costs

    --  Operating margin before exceptionals rises to 7.3% from 6.8% in H1/2007

    --  Cash flow from operations CHF 27 million

    --  Acquisition of Rite Systems/Ricon Colors strengthens Masterbatches

    --  TLP site in Horsforth, UK, announced for closure

    --  Full-year outlook unchanged
                  Clariant
                  CEO Jan Secher commented: 'Clariant had a solid first half year despite an
increasingly difficult environment. We were able to compensate for an
unprecedented 11% hike in raw material costs with price increases and to improve
our operating margin. Looking forward we expect an even more difficult
environment marked by an unbroken trend of raw material cost increases, a
weakening macro economic environment and unfavorable foreign exchange rates.
Based on our achievements, the momentum we have gained on improving operational
excellence and further efforts, we leave our full-year outlook unchanged.'

Clariant (SWX:CLN), a world leader in specialty chemicals, today announced a 4%
increase in sales in local currency for the first half of 2008 equivalent to a
decrease of 2% in CHF as a result of strong adverse currency effects. Total
sales amounted to CHF 4.233 billion.

The dynamics in the raw material markets as well as supply shortages of some
chemical feedstock have led to an 11% increase in raw material costs. At the
same time, Clariant's 'price over volume' approach in all divisions led to a 5%
price increase that compensated for the raw material cost hike. While the
reported gross margin remained stable at 29.7% (29.9% in H1 2007), it has
improved on a year on year basis for four quarters in a row despite the steep
increase in raw material costs in the same period. This led to an improvement of
0.5 percentage points compared to full-year 2007 gross margin.

Operating income before exceptionals amounted to CHF 310 million. On the back of
a decline in Sales, General and Administrative (SG&A) costs to 20.6% from 20.9%
the operating margin improved to 7.3% from last year's 6.8%. Net income rose to
CHF 92 million from CHF 73 million year on year. The results were strongly
affected by adverse currency dynamics that accounted for a negative impact of
CHF 59 million on operating income, translating into 1.4% of sales, and an
additional CHF 48 million on the net income line.

The usually low cash flow in the first half of the year reached CHF 27 million
from CHF 54 million mainly driven by inventory build up. The supply shortage of
some basic chemical feedstock in particular from China has forced Clariant to
increase safety stock levels in order to secure customer service. However the
cash flow development showed an increasing momentum during the first half.

With regards to its financial structure, Clariant has taken a further step
towards optimizing the maturity profile. The company launched a German
Certificate of Indebtedness ('Schuldscheindarlehen') in July amounting to EUR
100 million with favorable terms despite the difficult credit market
environment.

Strategic moves in Masterbatches and Functional Chemicals strengthen Clariant
businesses with strong market positions

As recently announced, Clariant has acquired Rite Systems, Inc. and Ricon Colors
Inc., leading US masterbatches suppliers with both liquid and solid
masterbatches technology. The acquisitions substantially strengthen Clariant's
Masterbatches' market position in North America, a region offering profitable
growth opportunities and a technologically demanding customer base, particularly
in the packaging and consumer goods market segments. The excellent knowledge of
Rite Systems in the field of liquid masterbatches is an ideal addition to
Clariant's current capabilities in this segment and will allow Clariant to
leverage this new competence into other regions where Clariant enjoys strong
market positions such as Europe, Asia and Latin America.

In order to bring Clariant closer to the booming oil service markets, the
company has moved the headquarters for its global oil service and mining
business to Houston, Texas. High global energy demand, combined with the trend
towards producing heavier and therefore more difficult to treat crude has
delivered double digit growth for Clariant Oil Services in recent years. The
establishment of the new global center in Houston clearly manifests Clariant's
commitment to invest in businesses with already strong market positions and good
profitability.

Clariant will continue to strengthen these businesses such as Masterbatches,
Coatings, Oil and Gas, Mining or Personal Care through organic growth and also
through acquisitions.

Implementation of restructuring continues

The stringent implementation of the previously announced restructuring measures
has resulted in a reduction of 750 job positions in the first half of 2008.
Restructuring and impairment expenses amounted to CHF 53 million. Since November
2006, Clariant has reduced about 1,800 out of the 2,200 job positions that were
planned for reduction in the Clariant 2010 strategy.

As part of Clariant's strategy to reduce the number of sites, the Board of
Directors approved addressing the excess capacity situation at the Textile,
Leather & Paper Chemicals Division site in Horsforth, UK. Clariant will enter
into discussions with the employee representatives that should lead to the
closure of the site, which employs roughly 270 people. If the proposals go ahead
approximately 160 job positions will be made redundant.

CEO Jan Secher commented: 'Against the backdrop of an increasingly difficult
economic environment we are decisively implementing the restructuring and cost
saving measures that have been initiated over the last 18 months in order to
protect ourselves against the potential continuing decline in demand. We are
prepared to undertake further restructuring measures that may be necessary,
should the economic climate significantly deteriorate.'

'Price over volume' approach in all divisions

All four divisions have continued to improve pricing and to decisively address
those businesses which have an unsatisfactory profitability. These actions have
not lead to a measurable negative effect on capacity utilization. All divisions
are seeing the benefit of the timely implementation of their strategic action
plans and have reduced their costs. This has positively impacted profitability.

Pigments & Additives Division with improved profitability

The Pigments & Additives Division grew 7% in local currency (1% in CHF). In
particular the Coatings Business showed strong sales development. In a
challenging environment the division defended its gross margin on a year on year
basis. The operating margin before exceptionals rose based on price increases
and cost savings.

The restructuring measures that are part of the divisional strategic action
plans are being implemented at a rapid pace and have started to contribute to
results. The closure of the site in Coventry, United States, that was announced
last year is proceeding on track.

Profitability of TLP impacted by volume decline and raw material hike in the
Paper Business

Sales in the Textile, Leather & Paper Chemicals Division declined 3% in local
currency (11% in CHF) due to a slowdown in demand in all three businesses. Good
growth in some key Asian markets could not offset the declines in North America,
Europe, and to a lesser extent, also in Latin America. Overall the demand for
the products of the division declined and the gross margin was lower than
previous year. Progress on cost savings mitigated the impact of the weak markets
on the operating result.

The Textile as well as the Leather Business compensated for the raw material
cost increases through price increases. The Leather Business has managed the
turnaround and significantly improved its profitability. The Paper Business was
heavily impacted by the supply shortage of raw material for optical brighteners.
This shortage has led to an unprecedented raw material cost escalation that
could not be compensated for by the significant price increases that were
realized.

Masterbatches Division develops solidly despite challenging economic environment

The Masterbatches Division showed 1% sales growth in local currency (-6 % in
CHF). The division was mostly impacted by the weakening economic environment and
was challenged by demand slowdowns in particular in the US and to a certain
degree also in Europe and Asia. While the automotive markets showed some
weakness, Clariant Masterbatches benefited from its high exposure to the less
cyclical end-user Packaging and Consumer Goods markets where business conditions
remained reasonably stable.

The Masterbatches Division was able to offset the increase of raw material costs
with selective price increases. The gross margin increased on a year on year
basis.

Functional Chemicals Division shows strong profitable growth

The Functional Chemicals Division showed strong growth in terms of both price
and volume. Sales growth in local currency was 10% (4% in CHF). As the division
has a strong focus on markets linked to infrastructure and basic consumer needs
it has not yet experienced a significant impact from a slowdown of the world
economy. The solution driven businesses - Oil Services and Mining - had strong
profitable growth basically as a result of high oil and other raw material costs
that makes it attractive for customers to explore new sources. The Detergents
and Intermediates Business has successfully managed its turnaround and is
developing as planned.

Functional Chemicals was able to offset the strong increase in raw material
costs with price increases. The gross margin of the division strongly improved
compared to the weakness of the last quarters of 2007 and remained stable
compared to the first half of the previous year. Despite the unfavorable
currency development the operating margin before exceptionals was improved.

Outlook for 2008 unchanged

Against a backdrop of a further increasingly uncertain global macro-economic
outlook, Clariant's focus during the remainder of the year will be on the
continuing implementation of price increases and cost leadership, which will
further help offset expected continuing increases in raw material and energy
costs.

With the benefits of the operational performance improvements already underway,
Clariant expects an improved operating margin before exceptional items and
continuing strong cash flow from operations in 2008.

Going forward, the company will focus on businesses where it will be able to
leverage strong market positions in attractive markets, and thus proactively
manage its portfolio.

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Key Financial Group Figures
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                                                           First Half
---------------------------------------------------------------------
Continuing operations:                        2008               2007
---------------------------------------------------------------------
                                             % of               % of
                                    CHF mn   sales    CHF mn    sales
---------------------------------------------------------------------
Sales                                4 233     100     4 336      100
---------------------------------------------------------------------

---------------------------------------------------------------------
Local currency growth (LC):             4%
---------------------------------------------------------------------
   Organic growth(1)                    4%
---------------------------------------------------------------------
   Acquisitions/Divestitures            0%
---------------------------------------------------------------------
   Currencies                          -6%
---------------------------------------------------------------------

---------------------------------------------------------------------
Gross profit                         1 259    29.7      1297     29.9
---------------------------------------------------------------------
EBITDA before exceptionals             437    10.3       430      9.9
---------------------------------------------------------------------
EBITDA                                 391     9.2       406      9.4
---------------------------------------------------------------------
Operating income before
 exceptionals                          310     7.3       294      6.8
---------------------------------------------------------------------
Operating income                       258     6.1       266      6.1
---------------------------------------------------------------------
Net income from continuing
 operations                             92     2.2       174      4.0
---------------------------------------------------------------------
Net income                              92     2.2        73      1.7
---------------------------------------------------------------------
Operating cash flow (total
 operations)                            27                54
---------------------------------------------------------------------

---------------------------------------------------------------------
Discontinued operations:
---------------------------------------------------------------------
Sales                                    0                81
---------------------------------------------------------------------
Net loss from discontinued
 operations                              0              -101
---------------------------------------------------------------------

---------------------------------------------------------------------
Other key figures:               30.6.2008        31.12.2007
---------------------------------------------------------------------
Net debt                             1 476             1 361
---------------------------------------------------------------------
Equity (including minorities)        2 289             2 372
---------------------------------------------------------------------
Gearing                                64%               57%
---------------------------------------------------------------------
Number of employees                 20 177            20 931
---------------------------------------------------------------------

                                              Second Quarter
------------------------------------------------------------
Continuing operations:                     2008         2007
------------------------------------------------------------
                                          % of         % of
                                 CHF mn   sales CHF mn sales
------------------------------------------------------------
Sales                             2 121     100  2 180   100
------------------------------------------------------------

------------------------------------------------------------
Local currency growth (LC):          5%
------------------------------------------------------------
   Organic growth(1)                 5%
------------------------------------------------------------
   Acquisitions/Divestitures         0%
------------------------------------------------------------
   Currencies                       -8%
------------------------------------------------------------

------------------------------------------------------------
Gross profit                        614    28.9    626  28.7
------------------------------------------------------------
EBITDA before exceptionals          207     9.8    211   9.7
------------------------------------------------------------
EBITDA                              184     8.7    196   9.0
------------------------------------------------------------
Operating income before
 exceptionals                       143     6.7    142   6.5
------------------------------------------------------------
Operating income                    118     5.6    127   5.8
------------------------------------------------------------
Net income from continuing
 operations                          51     2.4     88   4.0
------------------------------------------------------------
Net income                           51     2.4    -11  -0.5
------------------------------------------------------------
Operating cash flow (total
 operations)                         33             17
------------------------------------------------------------

------------------------------------------------------------
Discontinued operations:
------------------------------------------------------------
Sales                                 0             35
------------------------------------------------------------
Net loss from discontinued
 operations                           0            -99
------------------------------------------------------------

------------------------------------------------------------
Other key figures:
------------------------------------------------------------
Net debt
------------------------------------------------------------
Equity (including minorities)
------------------------------------------------------------
Gearing
------------------------------------------------------------
Number of employees
------------------------------------------------------------
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(1) Throughout this statement the term 'organic growth' is being used. It means
volume and price effects excluding the impacts of changes in FX rates and
acquisitions/divestitures.

Clariant - Exactly your chemistry.

Clariant is a global leader in the field of specialty chemicals. Strong business
relationships, commitment to outstanding service and wide-ranging application
know-how make Clariant a preferred partner for its customers.

Clariant, which is represented on five continents with over 100 group companies,
employs around 20,000 people. Headquartered in Muttenz near Basel, Switzerland,
it generated sales of CHF 8.5 billion in 2007. Clariant's businesses are
organized in four divisions: Textile, Leather & Paper Chemicals, Pigments &
Additives, Masterbatches and Functional Chemicals.

Clariant is committed to sustainable growth springing from its own innovative
strength. Clariant's innovative products play a key role in its customers'
manufacturing and treatment processes or else add value to their end products.
The company's success is based on the know-how of its people and their ability
to identify new customer needs at an early stage and to work together with
customers to develop innovative, efficient solutions.

www.clariant.com

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*T
Media Relations
Arnd Wagner, [phone]
or
Investor Relations
Ulrich Steiner, [phone]
*T