Press Release

Calgon Carbon Announces Third Quarter Results

PITTSBURGH, PA  –  11/01/2010

Calgon Carbon Corporation (NYSE: CCC) announced results for the third quarter ended September 30, 2010.

For the third quarter of 2010, the company reported income from operations of $14.6 million, as compared to $14.1 million for the third quarter of 2009.

Net income for the third quarter of 2010 was $10.0 million versus $13.9 million for the comparable period of 2009. On a fully diluted basis, net income per common share for the third quarter of 2010 was $0.18 as compared to $0.25 for the comparable quarter of 2009. Results for the third quarter of 2010 include $0.8 million of income, primarily from the release of a valuation allowance on foreign tax credits, as a result of the amendment and filing of prior year tax returns. Results for the third quarter of 2009 included release of a $5.0 million valuation allowance on foreign tax credits.

Net sales for the third quarter of 2010 were $124.4 million versus third quarter 2009 sales of $107.5 million, an increase of 15.7%. For the third quarter of 2010, the net effect on sales from acquisitions completed in 2010 was $16.2 million. Currency translation had a $2.1 million negative impact on sales for the third quarter of 2010 due to the stronger U.S. dollar.

For the third quarter of 2010, sales of Activated Carbon and Service increased by 16.7%, which includes 15.4% related to the above mentioned acquisitions, versus the third quarter of 2009. Also contributing to the increase was higher demand for activated carbon products in the environmental air treatment market and increased demand for activated carbon products and services in the industrial process and food markets. These increases were partially offset by lower demand for activated carbon products in the potable water market. Sales to the potable water market in the third quarter of 2009 included supply of a large quantity of activated carbon for a new potable water treatment facility in Asia.

Equipment sales increased 14.7% versus the third quarter of 2009, principally due to higher revenue from traditional carbon adsorption equipment. A 16.4% decline in Consumer sales for the third quarter of 2010 was due to lower demand for PreZerve® products and carbon cloth.

Net sales less the cost of products sold as a percentage of net sales was 33.7% for the third quarter of 2010 versus 33.9% for the third quarter of 2009.

Selling, administrative and research expenses for the third quarter of 2010 were $21.8 million as compared to $17.6 million for the third quarter of 2009. The increase of $4.2 million included $3.1 million of on-going expenses related to acquisitions completed in the first quarter, higher employee related costs, and increased research and development activities.

Calgon Carbon’s board of directors did not declare a quarterly dividend.

Net sales for the nine months ended September 30, 2010 were $350.9 million, a $49.7 million, or 16.5%, increase over the comparable period of 2009. The $3.1 million gain on acquisitions for the nine months ended September 30, 2010 relates to acquisitions that occurred during the first quarter. Net income for the nine months ended September 30, 2010 was $22.8 million versus $25.9 million for the comparable period of 2009. The 2010 results included an $11.5 million charge resulting from a verdict against the company in a breach of contract lawsuit. The 2009 results included the above mentioned $5.0 million foreign tax credit valuation allowance release. Fully diluted net income per common share for the nine months ended September 30, 2010 was $0.40. Fully diluted net income per common share for the nine months ended September 30, 2009 was $0.46.

Commenting on the results, John Stanik, Calgon Carbon’s chairman, president and chief executive officer, said, «We are encouraged by the third quarter results, as they represent progress in achieving our long-term growth objectives. We will continue to follow our growth plan, although from time-to-time this may have an adverse impact on short-term results, but should have a more significant positive impact in the long term. For example, the increase in research and development expenses in the third quarter of 2010 should result in differentiated products that will strengthen our competitive position in that market.»

«All three acquisitions made earlier this year contributed to the quarter-over-quarter sales growth. And during the third quarter, Hyde Marine was awarded a $19.8 million contract for ballast water treatment systems that should begin to have a positive impact on revenue and income next year.»

«The integration costs for Calgon Carbon Japan and its lower product margins should continue to have a negative effect on the company’s margins for several quarters until the strategic value of the acquisition is realized. However, the strength of our traditional businesses should mitigate the negative impact, which was the case for the third quarter of 2010. Although results for the third quarter of 2010 included Calgon Carbon Japan’s product sales, gross margin rates for the third quarters of 2010 and 2009 were virtually the same.»

«I am confident that Calgon Carbon is moving in the right direction to take full advantage of its many growth opportunities which should result in significant improvement in the company’s financial performance.»

For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit calgoncarbon.dev.

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.

This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as «expect,» «believe,» «estimate,» «anticipate,» or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the company’s most recent Annual Report pursuant to the «safe harbor» provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the company’s actual results in future periods to be materially different from any future performance suggested herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the company’s control. Some of the factors that could affect future performance of the company are higher energy and raw material costs, costs of imports and related tariffs, labor relations, availability of capital and environmental requirements as they relate both to our operations and to our customers, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the company’s most recent Annual Report.

*Before depreciation and amortization. The Activated Carbon and Service segment includes a charge of $11.5 million related to a litigation contingency for the year-to-date period 2010.