Engelhard increases capacity for activated bleaching earths; Raises Prices Nominally To Support Investments.

ISELIN, N.J.--(BUSINESS WIRE)--November 11, 1996--Engelhard Corporation today announced it has brought greater capacity on line to manufacture its activated bleaching earths for the fats and oils industry.

Engelhard said the additional capacity will enable the company to meet increasing customer demand for its activated bleaching earths. Engelhard made the plant investments at its Jackson, MS site to maintain product quality and consistency, and to sustain the flexibility to manufacture customized products for core customers.

"We've been approaching our plant's capacity for some time," said Michael Lang, Marketing Manager, Oleochemical Catalysts and Adsorbents in the Company's Chemical Catalysts Group. "This expansion will enable us to meet not only our customers' current needs, but their future requirements as well."

Nominal Price Increase To Support Investment

Engelhard will absorb most of the cost associated with the expansion, but will pass on to customers a nominal three to five percent price increase across its bleaching earth product line, effective January 1, 1997. "This incremental change in price reflects both the ongoing capital investment in our facility, as well as the steep rise in our costs to address increasingly stringent environmental requirements," said Lang. Some of the plant's improvements were highlighted in a technical presentation at the 1996 American Oil Chemists Society (AOCS) Conference held in Indianapolis. "Engelhard is committed to the fats and oils industry, and we believe the market will respond positively to this pricing change," said Lang. "Historically, we have done -- and continue to do -- an excellent job controlling costs. In fact, we've been able to keep our bleaching clay costs stable for the past 10 years. But we can't keep costs flat indefinitely." He points out the price change amounts to a rise of less than 1/2 percent per year over the 10-year period. "That's not much to pay for consistently superior products, workmanship and responsiveness," Lang said. We believe our customers will understand and support our efforts."

Engelhard Corporation is a world-leading provider of environmental technologies, specialty chemical products, engineered materials and related services. Its Chemical Catalyst Group produces catalysts, sorbents and separation products for the manufacture of plastics, fibers, paints and coatings, pharmaceuticals, edible oils, soaps, margarine, jet fuel and lube oils, among others.

CONTACT: Martha Eckert

908-205-6618