Arch Chemicals Announces Final Antidumping Duty Rate

NORWALK, Conn.--(BUSINESS WIRE)--Arch Chemicals, Inc.(NYSE: ARJ) announced that the U.S. Department of Commerce (DOC) has made its final determination for the second administrative review period that reduces the antidumping duty rate from 76 percent to less than 1 percent, subject to a review for clerical errors. This ruling relates to chlorinated isocyanurates (isos) that the Company imported from its major Chinese supplier for the period from June 1, 2006 through May 31, 2007. This final determination supersedes the DOC’s preliminary ruling published in April of this year, which estimated the final rate to be 23 percent for the period under review.

Arch estimates that the impact of the duty rate being reduced from 76 percent to less than 1 percent is an $11 million pre-tax benefit. Previously when the preliminary ruling of 23 percent was published, the Company had estimated a benefit of $8 million. The added $3 million benefit will offset lower volumes the HTH Water Products business experienced in August. The Company expects to recognize the $11 million benefit in the third quarter of 2008, compared to its previous guidance which assumed the benefit would be recognized in the fourth quarter of 2008.

In addition, the Company will begin paying cash deposits for future imports of isos at this reduced rate of approximately 1 percent. The Company expects this reduced rate to mitigate the anticipated higher costs for the purchase of isos that it will incur in the upcoming pool season.

“We are extremely pleased with the DOC’s ruling, which significantly reduced the antidumping duty rate on our imported isos,” said Arch Chemicals’ Executive Vice President and COO Louis S. Massimo. “Our HTH Water Products business remains on track to deliver improved operating income in 2008 and is well positioned to achieve our longer-term target of 15 to 17 percent return on sales.”

About Arch

Headquartered in Norwalk, Connecticut (USA), Arch Chemicals, Inc. is a global Biocides company with annual sales of approximately $1.5 billion. Arch and its subsidiaries provide innovative, chemistry-based solutions to control the growth of harmful microbes. The Company’s concentration is in water, hair and skin care products, treated wood, paints and coatings, building products and health and hygiene applications. Arch Chemicals operates in two segments: Treatment Products and Performance Products. Together with its subsidiaries, Arch has approximately 3,000 employees and manufacturing and customer-support facilities in North and South America, Europe, Asia, Australia and Africa. For more information, visit the Company’s Web site at http://www.archchemicals.com.

Except for historical information contained herein, the information set forth in this communication contains forward-looking statements that are based on management's beliefs, certain assumptions made by management and management's current expectations, outlook, estimates and projections about the markets and economy in which the Company and its various businesses operate. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," “intends,” "opines," "plans," "predicts," "projects," "should," "targets" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors"), which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Future Factors which could cause actual results to differ materially from those discussed include but are not limited to: general economic and business and market conditions; lack of growth in U.S. and European economies; increases in interest rates; economic conditions in Asia; changes in foreign currencies against the U.S. dollar; customer acceptance of new products; efficacy of new technology; changes in U.S. or foreign laws and regulations; increased competitive and/or customer pressure; the Company's ability to maintain chemical price increases; higher-than-expected raw material and energy costs and availability for certain chemical product lines; a change in the antidumping duties on certain products; price increases due to changes in Chinese taxes related to exports from China; increased foreign competition in the calcium hypochlorite markets; inability to obtain transportation for our chemicals; unfavorable court decisions, including unfavorable decisions in appeals of antidumping rulings, arbitration or jury decisions or tax matters; the supply/demand balance for the Company's products, including the impact of excess industry capacity; failure to achieve targeted cost-reduction programs; capital expenditures in excess of those scheduled, such as the China plant; environmental costs in excess of those projected; the occurrence of unexpected manufacturing interruptions/outages at customer or Company plants; a decision by the Company not to start up the hydrates manufacturing facility; unfavorable weather conditions for swimming pool use; inability to expand sales in the professional pool dealer market; the impact of global weather changes; changes in the Company’s stock price; and gains or losses on derivative instruments.