1st Quarter Results

Clariant
                  

Clariant Reports Improved Operating Margin in the First Quarter 2008

    --  Sales up 3% in local currency and down 2% in CHF due to currency effects

    --  Price increases of 4% fully compensate for a 9% increase in raw material
        costs

    --  Operating margin before exceptionals rises to 7.9% from 7.1% in Q1/2007

    --  Cash Flow from operations of CHF -6 million due to seasonal effects

    --  Full Year outlook unchanged

CEO Jan Secher commented: 'The measures we have initiated to improve operational
performance have started to show a positive impact. In particular our focus on
increased pricing and strict cost control has contributed to the improved
operating margin. While our top line growth in local currency has been
satisfying in the first quarter, we closely follow the economy and are prepared
to take further actions if changes should occur. Against this backdrop we stay
committed to an improved operating margin and a continued strong cash flow from
operations by the end of the year.'

Clariant, a world leader in specialty chemicals, posted a 3% sales growth in
local currency for the first quarter 2008. Adverse currency effects resulted in
a negative sales growth of 2% in CHF. Total sales amounted to CHF 2.112 billion.

Clariant increased prices by 4% and was able to fully offset a 9% increase in
raw material costs. The gross margin declined slightly to 30.5% from 31.1% in
the strong first quarter of 2007. Compared to the full year 2007 the gross
margin improved 1.3 percentage points. The gross margin year-on-year has
improved for three quarters in a row despite a steep increase of raw material
costs in the same period.

Clariant reduced the number of job positions by 400 in the first quarter as part
of the ongoing restructuring measures. Sales, General and Administration (SG&A)
costs declined to 20.7% down from 21.8% in the first quarter of 2007.

The operating margin before exceptionals improved to 7.9% from last year's 7.1%.
This translates into an increased operating income before exceptionals of CHF
167 million compared to CHF 152 million in the first quarter of 2007. The net
income from continuing operations declined to CHF 41 million from CHF 86 million
as a result of higher restructuring costs and unfavorable currency effects. In
the first quarter, foreign exchange effects had a negative impact on the
operating income of CHF 36 million and another CHF 44 million on the net result.

Cash flow from operations declined to CHF -6 million from CHF 37 million in the
previous year as inventories have been built up before the Easter holidays and
trade payables have been reduced.

Improved pricing across the divisions

All four divisions achieved higher prices in the first quarter as a result of
the company's focus on price increases and the corresponding measures that have
been initiated in the previous year. Following Clariant's price over volume
approach, the divisions have tackled customers with unsatisfying profitability
by price increases, utilization of alternative low cost distribution channels or
giving up on unprofitable business. These measures had a slightly negative
effect on volumes without having materially impacted capacity utilization.

Pigments & Additives division with strong sales and margin growth

The Pigment & Additives division grew 6% in local currency (1% in CHF) compared
to previous year. This favorable development was mainly influenced by good
demand but also partially the result of some inventory build-up by customers.
The main growth driver was the Coatings business that has benefited from robust
demand in particular from the automotive industry in Europe and strong growth in
Asia. The Specialties, Publication Inks and Plastics businesses also saw good
growth in terms of price and volume whereas at different levels.

Geographically, demand in Asia and Latin America gained momentum, whilst sales
in Europe were slightly lower. The weakness of the US market had only limited
impact on the division's top line due to the relatively small exposure of
Pigments & Additives to the US market.

The division significantly improved profitability due to price increases and
effective cost management, although the gross margin declined slightly on a
year-on-year basis.

The division has extended its joint venture with its Chinese partner Zhejiang
Baihe in Hang Zhou city, province of Zhejiang. The joint venture will build a
new plant for the production of Quinacridone high performance organic pigments.
The investment demonstrates Clariant's strong focus on the emerging markets in
Asia and in particular on mainland China, where the company already operates
nine facilities.

Textile, Leather & Paper Chemicals challenged by unfavorable market conditions

The performance of the Textile, Leather & Paper Chemicals division was impacted
by difficult, however different, market environments for all three businesses.
Sales in local currency declined 6% (11% in CHF). The gross margin declined
compared to the first quarter of 2007.

The Textile business was affected by a weak demand in the US and Europe - in
particular in key markets like Italy, Spain and Turkey. Customers in India and
Turkey suffered from strong currencies that negatively impacted their exports.
The business managed an unprecedented price increase despite the challenging
market situation. As a result, the gross margin could be increased compared to
the last quarter of the previous year although it was lower than in the first
quarter of 2007.

The leather market was basically stable. The leather finishing market
experienced good growth partly due to the solid development of the automotive
industry in Europe, while the wet end chemicals market was weak. In this
environment, Clariant's Leather business has progressed well in addressing
overcapacities and executing the previously announced restructuring measures.
The closure of the Selby production plant in the UK is proceeding according to
plan, and will be completed by the end of 2008. This step reduces the company's
exposure to the weak, lower margin wet end chemicals market. The gross margin of
the leather business remained stable.

The pulp and paper market has gone through a difficult period marked by
weakening demands. Clariant's Paper business was strongly influenced by a
developing shortage of supply of chemical feedstock for optical brighteners as
well as by extreme price increases. As a result, Paper was unable to compensate
for the rise in raw material costs through price increases. Despite these
circumstances, the profitability of the business still remained at a
satisfactory level.

Differentiated price increases of the Functional Chemicals division has
triggered profitable growth

The Functional Chemicals division saw a 9% growth in local currency (5% in CHF).
A favorable demand situation in Europe, the division's biggest market, as well
as market share gains in the US have contributed to this positive development.
The gross margin remained stable compared to the first quarter of 2007, which
represents a significant improvement compared to the second half of 2007.

A strong focus on price increases has turned the negative trend of the recent
quarters for the Detergents and Specialty Intermediates business in terms of
both volume and profitability. The Oil Services as well as the Mining business
continued to grow dynamically as market conditions remained favorable.

A main reason for the positive development of the division's profitability was a
differentiated approach on price increases that has been enabled by the new
structure of the Functional Chemicals division. The new structure enables the
division to clearly separate product-driven from service-driven businesses and
to manage them according to their respective needs.

Solid business development of the Masterbatches division

The Masterbatches division experienced a restrained demand in the first quarter.
Sales in local currencies remained flat and declined by 5% in CHF due to adverse
currency exchange effects. The division saw good growth in Latin America and
Asia whereas the United States has been impacted by a difficult economic climate
in the first quarter. Consequently, due to the proximity of the division to the
end user markets, sales in the US declined particularly in the housing and
automotive industries. Europe showed a differentiated sales pattern with the
main countries partially offsetting a weaker demand in smaller countries.

The division was able to offset the rise in raw material costs with selective
price increases. The raw material costs increased again but at a lower pace than
in the first quarter of 2007. The gross margin of the division remained at the
level of the previous year.

Outlook for 2008 unchanged

Against a backdrop of an increasingly uncertain global macro-economic outlook,
Clariant's focus during the remainder of the year will be on the continuing
implementation of price increases and cost leadership, which will help offset
expected further increases in raw material and energy costs.

With the benefits of the operational performance improvements already underway,
Clariant expects an improved operating margin before exceptional items and
continuing strong cash flow from operations in 2008.

Going forward, the company will focus on businesses where it will be able to
leverage strong market positions in attractive markets, and thus proactively
manage its portfolio.

Contacts:

Media Relations

Arnd Wagner, Phone: [phone]

or

Investor Relations

Ulrich Steiner, Phone: [phone]

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Key Financial Group Figures
----------------------------------------------------------------------
First Quarter
----------------------------------------------------------------------
Continuing operations:              2008             2007
----------------------------------- --------- ------ ---------- ------
                                              % of              % of
                                    CHF mn     sales CHF mn      sales
----------------------------------- --------- ------ ---------- ------
Sales                               2112      100.0  2156       100.0
----------------------------------- --------- ------ ---------- ------

----------------------------------- --------- ------ ---------- ------
Local currency growth (LC):         3%
----------------------------------- --------- ------ ---------- ------
Organic growth                      3%
----------------------------------- --------- ------ ---------- ------
Acquisitions/Divestitures           0%
----------------------------------- --------- ------ ---------- ------
Currencies                          -5%
----------------------------------- --------- ------ ---------- ------

----------------------------------- --------- ------ ---------- ------
Gross profit                        645       30.5   671        31.1
----------------------------------- --------- ------ ---------- ------
EBITDA before exceptionals          230       10.9   219        10.2
----------------------------------- --------- ------ ---------- ------
EBITDA                              207       9.8    210        9.7
----------------------------------- --------- ------ ---------- ------
Operating income before
 exceptionals                       167       7.9    152        7.1
----------------------------------- --------- ------ ---------- ------
Operating income                    140       6.6    139        6.4
----------------------------------- --------- ------ ---------- ------
Net income from continuing
 operations                         41        1.9    86         4.0
----------------------------------- --------- ------ ---------- ------
Operating cash flow (total
 operations)                        -6               37
----------------------------------- --------- ------ ---------- ------

----------------------------------- --------- ------ ---------- ------
Discontinued operations:
----------------------------------- --------- ------ ---------- ------
Sales                               0                46
----------------------------------- --------- ------ ---------- ------
Net loss from discontinued
 operations                         0                -2
----------------------------------- --------- ------ ---------- ------

----------------------------------- --------- ------ ---------- ------
Other key figures:                  31.3.2008        31.12.2007
----------------------------------- --------- ------ ---------- ------
Net debt                            1357             1361
----------------------------------- --------- ------ ---------- ------
Equity (including minorities)       2249             2372
----------------------------------- --------- ------ ---------- ------
Gearing                             60%              57%
----------------------------------- --------- ------ ---------- ------
Number of employees                 20530            20931
----------------------------------- --------- ------ ---------- ------
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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 around 21,000 people. Headquartered in Muttenz near Basel, Switzerland,
it generated sales of CHF 8.5 billion in 2007. Clariant's businesses are
organized in four divisions: Textile, Leather & Paper Chemicals, Pigments &
Additives, Masterbatches and Functional Chemicals.

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 knowhow 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