Clariant Posts Positive Results for First Nine Months

-- Sales up 1% in both Swiss franc and local currency terms

-- Net income rises 37% to CHF 222 million, from CHF 162 million

-- Price increases continuing across nearly all businesses

-- Transformation Program delivering strong cost reductions

-- Operating cash flow up strongly in Third Quarter, to CHF 195 million

Key Financial Group Figures (in CHF millions)
Nine Months 2005 % of 2004 2004(2) % of % Change
in CHF (like- vs. like-
millions sales for- sales for-like
(reported) like) CHF LC
-------------- ---------- ------ ----------- ------- ------- ---- ----
Sales 6,094 100.0% 6,550 6,039 100.0% 1% 1%
Gross profit 1,831 30.0% 2,106 1,959 32.4% -7% -7%
EBITDA 558 9.2% 746 692 11.5% -19% -19%
EBITDA before
exceptional
items 638 10.5% 760 701 11.6% -9% -9%
Operating
income before
exceptional
items and
amortization
of goodwill 427 7.0% 517 494 8.2% -14% -13%
Operating
income 332 5.4% 469 445 7.4% -25% -25%
Net income/
loss
(including
minorities) 222 3.6% 176 162 2.7%
Operating cash
flow(1) 195 535

30.9.2005 31.12.2004 30.9.2004
-------------- ---------- ------ ----------- ---------------
Net debt(1) 1,432 1,331 1,577
Equity
(including
minorities)
(1) 2,570 2,279 2,322
Gearing 56% 58% 68%
Number of
employees 23,592 24,769 25,082
Third Quarter 2005 % of 2004 2004(2) % of % Change
in CHF millions (like- vs. like-
sales for- Sales for-like
(reported) Like) CHF LC
-------------------- ------ ------ ---------- ------- ------ ---- ----
Sales 2,007 100.0% 2,131 1,950 100.0% 3% 0%
Gross profit 579 28.8% 647 617 31.6% -6% -9%
EBITDA 181 9.0% 245 233 11.9% -22% -24%
EBITDA before
exceptional items 215 10.7% 215 198 10.2% 9% 6%
Operating income
before exceptional
items and
amortization of
goodwill 145 7.2% 130 136 7.0% 7% 4%
Operating income 109 5.4% 152 153 7.8% -29% -31%
Net income/ loss
(including
minorities) 76 3.8% 45 50 2.6%
Operating cash
flow(1) 223 248

(1) 30.09.2004 restated: Net debt includes ABS adjustment, Equity
restated to include minority interests, Cash Flow restated.

(2) The numbers for 2004 are like-for-like to account for the
disposals of business activities in 2004 and 2005. Disposals in
2004: Electronic Materials and Lancaster Synthesis Ltd, UK and USA
(both of the Life Science Chemicals Division), and Clariant
Polymers, Japan, (of the Textile, Leather & Paper Chemicals
Division). All activities were sold effective as per the end of
2004. Disposal in 2005: Clariant Acetyl Building Blocks, Germany,
(of the Life Science Chemicals Division) was sold effective per
end of July 2005.

Clariant posted positive results for the first nine months of theyear, including a modest rise in sales, higher net income and asubstantial increase in operating cash flow in the Third Quarter.

Gross profit, meanwhile, declined to CHF 1.831 billion, from CHF1.959 billion during the same period in 2004, on a like-for-likebasis, leading to a decline in operating income before exceptionalitems and amortization of goodwill to CHF 427 million, compared withCHF 494 million.

"We are pleased with the good results achieved in the areas ofcash flow, net income and the improvement in margins in the ThirdQuarter," said Chief Executive Roland Loesser. "Nevertheless marketconditions were difficult over the last three months of the period,with negative effects felt from the continued high levels of rawmaterial prices. In addition, the impact of hurricane damage in theU.S. created a sluggish business climate overall."

Sales on a like-for-like basis were CHF 6.094 billion during theperiod, up 1% in both Swiss franc and local currency terms. Net incomerose 37% to CHF 222 million, from CHF 162 million. Operating cash flowincreased to CHF 195 million, compared with a negative CHF 43 millionafter the first six months of the year.

Prices were on average 1% to 2% higher during the period comparedto a year earlier. "We are confident that customers understand thatour increased costs mean prices need to be raised further and weexpect that further increases will be put through over the comingmonths," Mr. Loesser said.

Significant Costs Savings From Performance Improvements

The Clariant Transformation Program progressed well during theperiod. The program, launched two years ago, includes a wide-rangingseries of performance improvements as well as a strategic shift towardbusinesses where Clariant has a competitive advantage in service andinnovation. Approximately CHF 100 million in cost savings weredelivered during the Third Quarter as underlined by the improvement inthe operating margin before exceptional items and the amortization ofgoodwill, which rose to 7.2% from 7.0% a year earlier. These savingswere achieved despite significantly higher costs in raw materials,energy and transportation.

Clariant Announces Key Leadership Appointments

As announced last week, the Board of Directors made three keyleadership appointments, including designating Mr. Loesser as newchairman and Jan Secher as new chief executive. Mr. Loesser willassume his new role following the Annual General Meeting (AGM) onApril 7, 2006, taking over from the current chairman, Robert Raeber,who will reach the statutory retirement age at that time. Mr. Secherwill join Clariant's Management Board on January 1, 2006 and becomechief executive after the AGM.

Furthermore, Professor Dieter Seebach will retire as Member of theBoard of Directors. The Board will propose Dr. Peter Chen, chemistryprofessor at the Swiss Federal Institute of Technology (ETH) in Zurichto replace Professor Seebach.

Commenting on the appointment of the new CEO-designate, Mr.Loesser said: "I very much look forward to working with Jan Secher. Iam certain that he and the strong management team already in placewill successfully complete the Transformation Program and ensure thatwe achieve our goal of making Clariant a leading company in thespecialty chemicals sector."

Full-Year Outlook

The uncertain business climate - overshadowed by hurricane damagein the U.S. and sustained increases in the cost of raw materials,energy and transportation - is expected to continue affecting theshort-term outlook. Nevertheless, higher costs will compel Clariant toraise prices to its customers over the coming months. As a result,Clariant should post modest full-year growth in sales in localcurrency terms and stable operating margins before exceptional items,around last year's levels.

Clariant expects to reduce its cost base by some CHF 300 millionthis year compared to 2004. All factors considered, the companyanticipates higher net income in 2005.

"Despite a challenging climate, we will continue making excellentprogress in creating a significantly more efficient company." Mr.Loesser said.

Hint to editors:

The full Quarterly Report (media release, financial and businessreview, condensed financial statements) is available onwww.clariant.com.
Calendar of Corporate Events

February 28, 2006 Full Year 2005 Results; Annual Media Conference
April 7, 2006 Annual General Meeting
May 9, 2006 First Quarter 2006 Results
August 2, 2006 First Half 2006 Results
November 7, 2006 Nine Month 2006 Results
Contacts

Clariant - Exactly your chemistry.

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

Clariant, which is represented on five continents with over 100group companies, employs about 24,000 people. Headquartered in Muttenznear Basel, it generated sales of around CHF 8.5 billion in 2004.

Clariant's businesses are organized in five divisions: Textile,Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals,Life Science Chemicals and Masterbatches.

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

www.clariant.com