Corbo Presents New Growth Strategy At Annual Meeting of Hercules Shareholders.

Business Editors

WILMINGTON, Del.--(BUSINESS WIRE)--April 27, 2000

Hercules Incorporated (NYSE:HPC) Chairman, President and Chief Executive Officer Vincent J. Corbo presented the company's new growth strategy to shareholders today during the annual meeting.

Shareholders also re-elected Richard M. Fairbanks, III, Alan R. Hirsig, Edith E. Holiday and H. Eugene McBrayer to three-year terms and ratified PricewaterhouseCoopers LLP as Independent Accountants for 2000.

"Our new strategy builds upon the strong Hercules foundation and drives the company in New Directions, bringing solutions to its customers, new opportunities to the company and value to its shareholders," Corbo said.

The new, three-part strategy includes delivering cash, reducing debt and growing the core businesses - Pulp and Paper, BetzDearborn and Aqualon. The growth of these three businesses is being supported by shared technologies and the common goal of working with customers to meet their needs. Together, the three core businesses accounted for 71 percent of Hercules' 1999 sales and 75 percent of 1999 earnings.

"A unique competitive strength in these three businesses is the field force of more than 3,000 chemical engineers and technically trained representatives," Corbo said. "Their 'Solutions and Services' alliance with their customers has built strong relationships and made them invaluable resources."

Corbo, bringing shareholders up to date on why the company has taken the actions it has during the past year, talked about a tough marketplace with price pressures and increasing competition due to a wave of consolidations in the industry. This has had special impact on the Process Chemicals segment, which includes the recently acquired BetzDearborn Division.

"In 1999, the first full year following the acquisition," Corbo said, "our integration teams achieved more than $75 million in synergies. The current estimate is for $165 million, much more than we had originally projected when the BetzDearborn purchase was announced."

The strengths of Hercules, Corbo pointed out, include: cash operating margins in 1999 that stood at 24 percent, well above the industry average of 18 percent; and a strong corporate technology base that in 1999 alone accomplished nearly 400 new patents and launched 270 new products.

As part of the new strategy, Hercules already has taken steps toward generating cash to reduce debt. These steps include selling its Resins Division, its FiberVisions unit and spinning off the Food Gums Division into a joint venture to be owned 72 percent by Lehman Brothers and 28 percent by Hercules. Also, moves are being taken to cut working capital, reduce the company's debt-to-capital ratio, and reduce annual interest costs.

The re-elected board directors are: Fairbanks, president and chief executive officer of the Center for Strategic and International Studies in Washington D.C.; Hirsig, retired president and CEO of Arco Chemical Co.; Holiday, an attorney who formerly served as assistant to the President of the United States; and McBrayer, retired president of Exxon Chemical Co.

"I am convinced that once we have accomplished the challenging tasks we have set for ourselves, it will be recognized that Hercules is back.stronger than ever," Corbo said.

Hercules manufactures chemical specialties used in making a variety of products for home, office and industrial markets. For more information, visit the Hercules website at www.herc.com.

This news release includes forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, reflecting management's current analysis and expectations, based on reasonable assumptions.

Results could differ materially depending on such factors as business climate, economic and competitive uncertainties, higher manufacturing costs, reduced level of customer orders, changes in strategies, risks in developing new products and technologies, environmental and safety regulations and clean-up costs, foreign exchange rates, adverse legal and regulatory developments, and adverse changes in economic and political climates around the world.

Accordingly, there can be no assurance that the company will meet analysts' earnings estimates. As appropriate, additional factors are contained in reports filed with the Securities and Exchange Commission. This paragraph is included to provide safe harbor for forward-looking statements, which are not required to be publicly revised as circumstances change.