Rockwood Reports Very Strong Second Quarter Results:

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Princeton, NJ, USA , July 27, 2011 – Rockwood Holdings, Inc. (NYSE: ROC), a global producer of specialty chemicals and advanced materials, today reported earnings per share from continuing operations of $1.11 for the second quarter of 2011 as compared to $0.59 for the same period in the prior year. Rockwood’s as adjusted earnings per share increased to $1.17 in the second quarter of 2011 from $0.50 for the same period in the prior year.

“Our businesses performed exceptionally well in the second quarter. Strong demand for our products, combined with improvement in pricing and productivity, enabled us to achieve an all-time high Adjusted EBITDA to sales margin of 23.4 percent. Adjusted EBITDA improved by 43.1 percent versus the second quarter of last year and EPS almost doubled. Rockwood continued to benefit from the fundamental strengths of its focused portfolio of world-class businesses. It is particularly encouraging that all of our business units improved performance as compared to a year ago,” Seifi Ghasemi, Chairman and Chief Executive Officer said.

The highlights from continuing operations for the second quarter and six months ended June 30, 2011 are as follows:

• Net sales were $1,000.0 million for the second quarter of 2011, up 22.9% compared to $813.7 million for the same period in the prior year. Net sales were $1,914.0 million for the six months ended June 30, 2011, up 20.2% compared to $1,592.1 million for the same period in the prior year.
• Adjusted EBITDA was $233.6 million for the second quarter of 2011, up 43.1% compared to $163.2 million for the same period in the prior year. Adjusted EBITDA was $440.2 million for the six months ended June 30, 2011, up 37.5% compared to $320.1 million for the same period in the prior year.
• On a constant-currency basis, net sales and Adjusted EBITDA were up 12.2% and 30.0%, respectively, for the second quarter of 2011 and were up 14.7% and 30.8%, respectively, for the six months ended June 30, 2011 compared to the same period in the prior year.
  

  
  Net income attributable to Rockwood Holdings, Inc. for the second quarter of 2011 was $88.9 million, including after-tax net special charges of $4.7 million. Net income attributable to Rockwood Holdings, Inc. for the second quarter of 2010 was $45.9 million, including income of $6.9 million related to after-tax net special items. Net income attributable to Rockwood Holdings, Inc. for the six months ended June 30, 2011 was $152.2 million, including after-tax net special charges of $11.6 million. Net income attributable to Rockwood Holdings, Inc. for the six months ended June 30, 2010 was $78.2 million, including income of $7.8 million related to after-tax net special items.
  

  
  
• Diluted earnings per share for the second quarter of 2011 were $1.11, including after-tax net special charges of $0.06. Excluding net special charges, diluted earnings per share were $1.17 in the second quarter of 2011. Diluted earnings per share for the second quarter of 2010 were $0.59, including income of $0.09 related to after-tax net special items. Excluding net special items, diluted earnings per share were $0.50 in the second quarter of 2010.
  

  
  Diluted earnings per share for the six months ended June 30, 2011 were $1.91, including after-tax net special charges of $0.14. Excluding net special charges, diluted earnings per share were $2.05 for the six months ended June 30, 2011. Diluted earnings per share for the six months ended June 30, 2010 were $1.01, including income of $0.10 related to after-tax net special items. Excluding net special items, diluted earnings per share were $0.91 for the six months ended June 30, 2010.
  

  
  
• See reconciliations of net income/EPS as reported to net income/EPS as adjusted at the end of this release for details of the special charges/items discussed above.

Commenting on the outlook, Mr. Ghasemi said, “We continue to be optimistic about the prospects for our businesses. Demand for our products continues to be strong. We expect to maintain our high margins and improve EPS. We intend to use our strong cash flow to invest in our businesses to promote organic growth and to reduce our leverage in line with our long-term objectives.”

Second quarter results, as compared with the same period a year ago, are summarized below:

Specialty Chemicals

Net sales and Adjusted EBITDA increased 24.9% and 25.9%, respectively.

• In our Fine Chemicals business, higher volumes of lithium products, as well as increased selling prices, were partially offset by higher raw material costs primarily in our Metal Sulfides business.
• In our Surface Treatment business, higher volumes in all markets, particularly in automotive and general industrial, as well as increased selling prices, were partially offset by higher raw material costs.

Performance Additives

Net sales and Adjusted EBITDA increased 10.9% and 24.3%, respectively.

• Net sales and Adjusted EBITDA were up from increased selling prices, as well as higher volumes of oilfield applications in our Clay-based Additives business.
• Adjusted EBITDA was negatively impacted by lower volumes in our Color Pigments and Services business and higher raw material costs.

Titanium Dioxide Pigments

Net sales and Adjusted EBITDA increased 34.6% and 114.5%, respectively.

• Net sales and Adjusted EBITDA were up primarily from higher selling prices and, to a lesser extent, a favorable product mix. Adjusted EBITDA was negatively impacted by higher production, raw material and energy costs and lower volumes.

Advanced Ceramics

Net sales and Adjusted EBITDA increased 19.6% and 24.6%, respectively.

• Net sales and Adjusted EBITDA were up from higher volumes in most product applications, including medical applications.

Corporate and Other

Corporate costs increased in the second quarter of 2011 due to higher miscellaneous central costs.

Other Items

• Interest expense,net decreased $11.6 million in the second quarter of 2011 compared to the same period in the prior year. The second quarter of 2011 included non-cash losses of $1.4 million and the second quarter of 2010 included non-cash gains of $5.6 million, representing the movement in the mark-to-market valuation of our interest rate swaps. Excluding the impact of these losses and gains, interest expense, net decreased $18.6 million primarily due to debt repayments and lower interest rates related to the refinancing of our senior secured terms loans in February 2011.

• Income taxes. The effective income tax rate for the second quarter of 2011 was 27.5% and was favorably impacted by certain domestic income that was not tax effected and a beneficial foreign earnings mix.

• Free cash flowwas an inflow of $61.4 million for the second quarter of 2011 and consisted of net cash provided by operating activities of continuing operations of $117.2 million plus special items and other, net of $2.6 million, less capital expenditures, net of $58.4 million.

• Net debt, which is total debt less cash and cash equivalents, was $1,555.3 million as of June 30, 2011 compared to $1,836.9 million as of December 31, 2010. The decrease in net debt was primarily due to proceeds from the sale of our AlphaGary plastic compounding business in January 2011, partially offset by the impact of currency changes.

Conference Call and Webcast

We will host a conference call and webcast to discuss the results of operations for the second quarter ended June 30, 2011 on Wednesday, July 27th, 2011 at 11:00 am Eastern Time. The dial-in number to access the conference call in the U.S. is (800) 230-1074 and the international dial-in number is (612) 234-9959. No access code is needed for either call. A replay of the conference call will be available through August 10th, 2011 at (800) 475-6701 in the U.S., access code: 208353, and internationally at (320) 365-3844, access code: 208353.

A listen only, live webcast of the conference call will be available at www.rocksp.com

.  Materials for the call, including a PowerPoint file detailing the results, will be available for download on the site on the morning of the call.  The webcast and PowerPoint file will be archived on Rockwood’s website.

Non-GAAP Financial Measures

This press release includes “non-GAAP financial measures,” such as, a discussion of Adjusted EBITDA, free cash flow and net income/diluted earnings per share from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items. Adjusted EBITDA is not intended to be an alternative to net income attributable to Rockwood Holdings, Inc. as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. All presentations of consolidated Adjusted EBITDA are calculated using the definition set forth in the Company’s senior secured credit agreement as a basis and reflects management’s interpretations thereof. Adjusted EBITDA, which is referred to under the senior secured credit agreement as “Consolidated EBITDA,” is defined in the senior secured credit agreement as consolidated earnings (which, as defined in the senior secured credit agreement, equals income (loss) before the deduction of income taxes of Rockwood Specialties Group, Inc. and the Restricted Subsidiaries (as such term is defined in the senior secured credit agreement), excluding extraordinary items) plus certain items including interest expense, depreciation expense, amortization expense, extraordinary losses and non-recurring charges, losses on asset sales, less certain items including extraordinary gains and non-recurring gains, non-cash gains and gains on asset sales. We use Adjusted EBITDA on a consolidated basis to assess our operating performance, to calculate performance-based cash bonuses and determine whether certain performance-based options and restricted stock units vest (as such bonuses, options and restricted stock units are tied to Adjusted EBITDA), and as a liquidity measure. In addition, we use Adjusted EBITDA to determine compliance with our debt covenants. We also use Adjusted EBITDA on a segment basis as the primary measure used by our chief operating decision maker to evaluate the ongoing performance of our business segments and reporting units. A reconciliation of net income attributable to Rockwood Holdings, Inc. to Adjusted EBITDA is contained in this press release. We strongly urge you to review the reconciliation. In addition, we discuss sales growth in terms of nominal (actual) and net change (nominal less constant currency impacts). Free cash flow is not intended to be an alternative to cash flows from operating activities as a measure of liquidity. Our presentation of free cash flow is defined as net cash from operating activities of continuing operations plus special items and other, net less capital expenditures, net (includes proceeds on the sale of property, plant and equipment and proceeds from government grants received; excludes sales of property, plant and equipment related to sales of businesses). Management believes that free cash flow is meaningful to investors because it provides an additional measure of liquidity. Neither net income from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items nor diluted earnings per share from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items is intended to be an alternative for net income or diluted earnings per share. Management believes that net income and diluted earnings per share from continuing operations attributable to Rockwood Holdings, Inc. excluding certain items is meaningful to investors because it provides a view of the Company with respect to ongoing operating results. Reconciliations of these non-GAAP financial measures are included herein. These non-GAAP measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies.

Rockwood Holdings, Inc. is a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 9,700 people and annual net sales of approximately $3.2 billion. Rockwood focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets. For more information on Rockwood, please visitwww.rocksp.com.

The information set forth in this press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries and affiliates ("Rockwood"). Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "predicts" and variations of such words or expressions are intended to identify forward-looking statements. Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including any statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood's forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood's 2010 Form 10-K on file with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

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