Continental Carbon Company Media Backgrounder/Update Ponca City Production and Maintenance Labor Negotiations.

HOUSTON -- The following is a statement from Continental Carbon Company:

PACE has engaged in a global corporate campaign against Continental Carbon Company during the past three years in response to a lockout at the Company's Ponca City, Okla., carbon black manufacturing plant.

Continental Carbon Company has five union represented employee groups within its organization. During the past three years, Continental Carbon has successfully negotiated collective bargaining agreements with all union represented employee groups, except the sole holdout -- the Ponca City Production and Maintenance group. Unlike the other four union-represented employee groups, three of which also are represented by PACE, this Ponca City local seems to have its own private agenda.

Throughout the collective bargaining process, Continental Carbon Company has adhered to its legal obligation to bargain in good faith with PACE. In fact, the National Labor Relations Board, the government agency responsible for overseeing labor law compliance, has consistently determined that Continental Carbon acted appropriately with regard to the negotiation process and the lockout at Ponca City.

PACE, on the other hand, has chosen to wage a carefully orchestrated negative campaign aimed at defaming Continental Carbon Company and its shareholders, creating tension between Continental Carbon and the communities in which it operates, as well as attempting to strain the excellent relationships between the Company and its customers and suppliers. PACE has engaged in a variety of irresponsible activities, including filing of frivolous environmental lawsuits and obtaining more than 29,000 pages of proprietary Continental Carbon documents through admitted "unorthodox" methods. The fact that PACE seeks to concentrate its efforts on such reprehensible activities rather than negotiate at the bargaining table is a clear indication that PACE is not engaged in good faith collective bargaining. Notwithstanding PACE's bad faith conduct, Continental Carbon will continue its effort to reach an agreement and restore labor peace to the Ponca City plant.

PACE's recent decision to send several individuals to Taiwan to disrupt shareholders meetings and conduct a hunger strike is another chapter in the union's book of corporate campaign activities. Clearly, PACE does not want to address the real issue, which is resolving a more than three-year old labor disagreement in a mutually acceptable manner.

Continental Carbon is a small company that simply desires to remain competitive in an ever-changing and increasingly difficult economic market. The Company remains committed to holding talks that will lead to a mutually acceptable solution and urges PACE and its 320,000 members to refocus on reaching a settlement with Continental Carbon Company.