Rogers Corp. Files 8-K and Projects Record Second Quarter Sales and Record Full-Year Earnings

Due to recent market and customer developments, Rogers believesthat the future outlook of the Company's polyolefin foams andpolyester-based laminates operating units has changed from previousexpectations. As a result, it was determined that these events qualifyas indicators of impairment under generally accepted accountingprinciples (GAAP) and that the assets associated with these twooperating units may require a non-cash impairment charge, which couldaffect the Company's second quarter 2006 GAAP earnings. The vastmajority of the polyolefin foam unit's assets were impaired during2005 when the Company significantly restructured this business andscaled down the unit's market focus. However, due to unforeseen recentcompetitive developments, the profitability and viability of thebusiness appear more questionable in the long term than originallyforecast in 2005.

The polyester-based laminates unit includes shielding materialsused mostly in the cable industry. The cable market has been affectedby rising raw material prices, especially copper. In addition, it nowappears that certain new higher margin non-cable applications, whichwould further diversify the heavily concentrated commodity cableproduct business, will take longer to come to fruition than originallyplanned. Consequently, the Company expects these events to unfavorablyimpact future sales and profit forecasts.

The polyolefin foam and polyester-based laminates operating unitscurrently have long-lived assets and goodwill of approximately $16million, of which approximately $11 million represents residualgoodwill. The exact amount of any impairment charge will not be knownuntil a full assessment is completed by the Company with theassistance of an independent third-party valuation specialist. TheCompany will disclose such amount or range when it has beendetermined.

Second Quarter Guidance

The Company also announced that, excluding any aforementionednon-cash impairment charges, it now expects both sales and non-GAAPearnings to be above previous guidance ranges and at record levels forthe second quarter of 2006. Rogers now projects second quarter netsales to be $101 to $103 million compared to the April 20, 2006,guidance of $97 to $100 million. Non-GAAP earnings for the secondquarter, excluding any impairment charges, are projected to be $0.69to $0.72 per diluted share versus previous guidance of $0.63 to $0.67per diluted share.

The Company cannot at this time reconcile the non-GAAP financialmeasures to the most directly comparable GAAP financial measures, asthe potential impairment charges resulting in the non-GAAP financialmeasures are not known to the Company at this time.

Robert D. Wachob, President and CEO, commented, "Outside of anypotential GAAP impairment adjustments, we are extremely pleased withthe overall expected results for this quarter, which is usually slowerthan the third and fourth quarters of the year. Thehigher-than-expected second quarter operating results are due to salesleverage, continued market penetration, and improved execution in ourworldwide strategic operations. Any impairment adjustment related toour Other Polymer Products segment correlates with our continuedemphasis on structuring our businesses in line with our long-termstrategic interests. Additionally, even after the impairment charge,we expect record sales and GAAP earnings for 2006."

Rogers Corporation, headquartered in Rogers, CT, U.S.A., developsand manufactures high-performance specialty material based products,which serve a diverse range of markets including: portablecommunication devices, communication infrastructure, consumerproducts, computer and office equipment, ground transportation, andaerospace and defense. Rogers operates manufacturing facilities inConnecticut, Arizona, and Illinois in the U.S., in Gent, Belgium, inSuzhou, China, and in Hwasung City, Korea. Sales offices are locatedin Belgium, Japan, Taiwan, Korea, China, and Singapore.

Safe Harbor Statement

Statements in this news release that are not strictly historicalmay be deemed to be "forward-looking" statements within the meaning ofthe Private Securities Litigation Reform Act of 1995. Theseforward-looking statements are based on management's currentexpectations and are subject to the many uncertainties that exist inthe Company's operations and environment. These uncertainties, whichinclude economic conditions, market demand and pricing, competitiveand cost factors, rapid technological change, new productintroductions, legal proceedings, and the like, are incorporated byreference in the Rogers Corporation 2005 Form 10-K filed with theSecurities and Exchange Commission. Such factors could cause actualresults to differ materially from those in the forward-lookingstatements. All information in this press release is as of June 29,2006, and Rogers undertakes no duty to update this information unlessrequired by law.