Arch Chemicals Expanding Global Biocides Manufacturing Capacity

Arch Chemicals, Inc. (NYSE:ARJ), the world’s most comprehensive biocides supplier, is extending manufacturing capabilities for key biocide products and intermediate ingredients in China, the U.S. and Ireland to serve growing demand worldwide in the Preservation & Protection and Health & Hygiene markets. "With global demand at near-record levels for Arch biocides used in a variety of health & hygiene and industrial applications, we are expanding biocides capacities on three continents,” said Louis S. Massimo, Arch Chemicals’ Executive Vice President and Chief Operating Officer. "We believe it is essential to have manufacturing and customer-support facilities in place wherever our major customers do business.” To satisfy rapidly growing demand in China for Arch’s antidandruff agent, Arch is building a new, state of the art, manufacturing facility in Suzhou, China, with start-up expected in late 2008. The Company’s zinc Omadine® is the world’s most popular antidandruff agent, which reflects its combination of high antimicrobial efficacy and safety. New laboratory and technical customer-support facilities to support this new manufacturing facility and regional customer needs are expected to be completed in 2008. In early 2008, Arch also successfully started up a new copper and zinc Omadine® powder drying and milling facility at the Suzhou complex to support growth in the marine paint sector. Arch’s biocides manufacturing facilities in Rochester, New York and Swords, Ireland are also expanding capacities to insure adequate worldwide supply of the key intermediate 2-Chloropyridine (2-PCl) and Omadine® finished products for regional consumption. Arch is currently doubling 2-PCl manufacturing capacity at its Rochester, New York location, already the world’s largest 2-PCl production facility. 2-PCl is the key intermediate used to produce the Company’s zinc, copper and sodium Omadine® biocides. These biocides are tailored for use in antidandruff shampoos, marine antifouling hull paints, metalworking fluids, and building products such as wallboard, ceiling tiles and paints and coatings, where they deter the growth of mold and mildew. Headquartered in Norwalk, Connecticut (USA), Arch Chemicals, Inc. is a global Biocides company with annual sales of approximately $1.5 billion. Arch and its subsidiaries provide innovative, chemistry-based solutions to control the growth of harmful microbes. The Company’s concentration is in water, hair and skin care, treated wood, paints and coatings, building products and health and hygiene applications. Arch Chemicals operates in two segments: Treatment Products and Performance Products. Together with its subsidiaries, Arch has approximately 3,000 employees and manufacturing and customer-support facilities in North and South America, Europe, Asia, Australia and Africa. For more information, visit the Company’s Web site at http://www.archchemicals.com. Except for historical information contained herein, the information set forth contains forward-looking statements that are based on management's beliefs, certain assumptions made by management and management's current expectations, outlook, estimates and projections about the markets and economy in which the Company and its various businesses operate. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends,” "opines," "plans," "predicts," "projects," "should," "targets" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors"), which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Future Factors which could cause actual results to differ materially from those discussed include but are not limited to: general economic and business and market conditions; lack of growth in U.S. and European economies; increases in interest rates; economic conditions in Asia; changes in foreign currencies against the U.S. dollar; customer acceptance of new products; efficacy of new technology; changes in U.S. or foreign laws and regulations; increased competitive and/or customer pressure; the Company's ability to maintain chemical price increases; higher-than-expected raw material costs and availability for certain chemical product lines; a change in the anti-dumping duties on certain products; price increases due to changes in Chinese taxes related to exports from China; increased foreign competition in the calcium hypochlorite markets; unfavorable court decisions, including unfavorable decisions in appeals of antidumping rulings, arbitration or jury decisions or tax matters; the supply/demand balance for the Company's products, including the impact of excess industry capacity; failure to achieve targeted cost-reduction programs; capital expenditures in excess of those scheduled, such as the China plant; environmental costs in excess of those projected; the occurrence of unexpected manufacturing interruptions/outages at customer or Company plants; a decision by the Company not to start up the hydrates manufacturing facility; unfavorable weather conditions for swimming pool use; inability to expand sales in the professional pool dealer market; the impact of global weather changes; changes in the Company’s stock price; and gains or losses on derivative instruments.