Press Release

Calgon Carbon Announces Third Quarter Results

PITTSBURGH, PA  –  10/22/2003

Calgon Carbon Corporation (NYSE: CCC) announced results for the third quarter ended September 30, 2003. Sales for the third quarter were $66.6 million versus third quarter 2002 sales of $64.8 million, an increase of 2.7%. The company reported net income of $1.2 million as compared to net income of $0.6 million for the third quarter of 2002, a 119.4% increase. Earnings per share on a diluted basis for the third quarter of 2003 were $0.03 as compared to $0.01 for the third quarter of 2002. Foreign currency translation had a $2.4 million positive effect on sales for the quarter due to the stronger Euro. The change to the equity method of accounting for Calgon Mitsubishi Chemical Corporation, as a result of the joint venture formed by Calgon Carbon and Mitsubishi Chemical in 2002, had a negative impact on the quarter-to-quarter sales comparison of $1.6 million. For the third quarter of 2003 versus the comparable period in 2002, sales of activated carbon were up 9.1%, due primarily to increased demand for specialty carbons. Service sales of $24.7 million increased 1.7% as compared to the third quarter of 2002. Excluding the positive impact of foreign currency translation, Service sales declined slightly quarter-to-quarter, reflecting weaker demand for potable water service in the U.S. Engineered Systems sales declined 22.2% due to low order activity in the first half of 2003. A 28.0% increase in consumer sales was attributable to increased demand for activated carbon cloth and charcoal. Consolidated gross profit before depreciation and amortization as a percentage of net sales was 30.0%, the same as the third quarter of 2002. Carbon and Service margins were adversely affected by product mix and increases in employee benefit costs, while sales in Europe of U.S.-sourced, lower-cost carbon, due to the stronger Euro, had a positive effect. Engineered Systems margins improved versus the third quarter of 2002 when the company incurred higher costs than expected on a major project. Consumer margins also improved versus the comparable period of 2002 due to higher demand for activated carbon cloth. Operating expense for the third quarter of 2003 was on par with the comparable quarter of 2002 and showed a slight decline as a percentage of sales. Sales for the nine months ended September 30, 2003, were $208.7 million versus $195.5 million for the nine months ended September 30, 2002, an increase of 6.8%. Year to date, foreign currency translation had a positive impact of $10.9 million on sales. The change to the equity method of accounting, due to the formation of the joint venture, had a negative impact of $4.4 million on the year-over-year sales comparison.

For the nine months ended September 30, 2003, the company reported income before cumulative effect of accounting change of $2.5 million, versus $3.9 million for the comparable period of 2002, a decrease of 36.9%. Net income for the first nine months of 2003 was $2.5 million versus a net loss of $27.0 million for the comparable period in 2002. For the first nine months of 2003, earnings per share before the cumulative effect of accounting change on a diluted basis were $0.06 versus $0.10 for the first nine months ended 2002.

Calgon Carbon’s board of directors declared a dividend of $0.03 per share. Dividends will be payable to shareholders of record as of November 10, 2003, and will be payable on December 2, 2003.

Commenting on the quarter, John Stanik, president and chief executive officer of Calgon Carbon, said, “Results for the quarter were as we expected. Carbon showed growth, but our Service business continued to be adversely affected by lower demand from municipalities. Weak demand for equipment in the first six months of the year had a negative impact on sales revenue in the third quarter. Demand for both carbon cloth and charcoal contributed to a solid performance from our consumer group.”

Looking ahead, Mr. Stanik continued, “The pace of the economic recovery in North America and Europe will continue to drive the demand for carbon, service, and equipment in the short term. New orders secured in the third quarter for perchlorate removal and disinfection of drinking water should have a positive impact on sales in our Engineered Systems segment. Consumer sales will depend on continued demand for activated carbon cloth and a seasonal increase in demand for our PreZerve™ tarnish prevention products.”

“In the longer-term, our success will be driven by strengthening our core businesses, applying our technical knowledge to solve new purification problems, and expanding our geographical presence. We have developed initiatives to implement this strategy, and within the next few weeks, we will provide details on how we expect them to have a positive impact on results.”

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making air and water cleaner and safer. The company employs approximately 1,000 people at 14 operating facilities and 11 sales and service centers worldwide.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This document contains certain statements that are forward-looking relative to the company’s future strategy and performance. They involve known and unknown risks and uncertainties that may cause the company’s actual results in future periods to be materially different from any future performance.