Clariant Posts Positive Results for First Nine Months.

MUTTENZ, Switzerland -- Clariant:

--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 the year, including a modest rise in sales, higher net income and a substantial increase in operating cash flow in the Third Quarter.

Gross profit, meanwhile, declined to CHF 1.831 billion, from CHF 1.959 billion during the same period in 2004, on a like-for-like basis, leading to a decline in operating income before exceptional items and amortization of goodwill to CHF 427 million, compared with CHF 494 million.

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

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

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

Significant Costs Savings From Performance Improvements

The Clariant Transformation Program progressed well during the period. The program, launched two years ago, includes a wide-ranging series of performance improvements as well as a strategic shift toward businesses where Clariant has a competitive advantage in service and innovation. Approximately CHF 100 million in cost savings were delivered during the Third Quarter as underlined by the improvement in the operating margin before exceptional items and the amortization of goodwill, which rose to 7.2% from 7.0% a year earlier. These savings were 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 key leadership appointments, including designating Mr. Loesser as new chairman and Jan Secher as new chief executive. Mr. Loesser will assume his new role following the Annual General Meeting (AGM) on April 7, 2006, taking over from the current chairman, Robert Raeber, who will reach the statutory retirement age at that time. Mr. Secher will join Clariant's Management Board on January 1, 2006 and become chief executive after the AGM.

Furthermore, Professor Dieter Seebach will retire as Member of the Board of Directors. The Board will propose Dr. Peter Chen, chemistry professor at the Swiss Federal Institute of Technology (ETH) in Zurich to 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. I am certain that he and the strong management team already in place will successfully complete the Transformation Program and ensure that we achieve our goal of making Clariant a leading company in the specialty chemicals sector."

Full-Year Outlook

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

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

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

Hint to editors:

The full Quarterly Report (media release, financial and business review, condensed financial statements) is available on www.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 and wide-ranging application know-how make Clariant a preferred partner for its customers.

Clariant, which is represented on five continents with over 100 group companies, employs about 24,000 people. Headquartered in Muttenz near 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 own innovative strength. Clariant's innovative products play a key role in its customers' manufacturing and treatment processes or else add value to their end products. The company's success is based on the know-how of its people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative, efficient solutions.

www.clariant.com