Press Release

Calgon Carbon Announces Second Quarter Results

PITTSBURGH, PA  –  07/26/2004

Calgon Carbon Corporation (NYSE:CCC) announced results for the second quarter ended June 30, 2004.

Sales for the second quarter were $97.1 million versus second quarter 2003 sales of $78.1 million, an increase of 24.4%. The company reported net income of $4.2 million as compared to net income of $3.0 million for the second quarter of 2003, a 42.0% increase. Earnings per share on a diluted basis for the second quarter of 2004 were $0.11 versus $0.08 for the second quarter of 2003. Sales of the former Specialty Products Division of Waterlink, Inc. (Waterlink), which Calgon Carbon acquired in February 2004, were $15.1 million for the second quarter of 2004. Foreign currency translation had a $2.6 million positive effect on sales for the quarter due to the stronger Euro.

For the second quarter of 2004, sales of the Activated Carbon and Service segment increased 19.0% versus the comparable period in 2003. Excluding the contribution from Waterlink, sales in this segment declined 4.0%. The quarter-over-quarter comparison was adversely affected by a one-time sale of activated carbon in 2003 for a new drinking water treatment facility in Asia for which there was no replacement in 2004. Lower demand for service in Europe and the U.S. also contributed to the decline.

Equipment sales increased 83.3% in the second quarter of 2004, as compared to the second quarter of 2003. Excluding Waterlink sales, this segment was up 60.8%, due to higher sales of solvent recovery, ion exchange, and ultraviolet light systems.

A 5.7% increase in consumer sales for the quarter was attributable to higher charcoal and liquid sales in Europe.

Consolidated gross profit before depreciation and amortization as a percentage of sales for the second quarter of 2004 was 28.6%, versus 31.2% for the second quarter of 2003. The decline was primarily attributable to product mix, competitive pricing, and higher raw material costs in the Carbon and Service Segment. Equipment margins also declined due to competitive bidding. However, margins on ultra violet light systems sold in North America and on ISEP® equipment for the Asian market showed significant improvement versus the second quarter of 2003. Product mix in Europe and reduced sales of PreZerve® products in the U.S. had an adverse impact on Consumer margins for the quarter.

Operating expense for the second quarter of 2004 was $1.0 million higher than for the comparable period of 2003, including $2.3 million associated with Waterlink. A $0.5 million decrease in employee-related costs and a $0.5 million favorable judgment in a patent litigation suit concerning the company’s proprietary ISEP® system partially offset the Waterlink expenses.

Sales for the six months ended June 30, 2004 were $168.4 million, versus $142.1 million for the six months ended June 30, 2003, an increase of 18.5%. For the six months ended June 30, 2004, the company reported net income of $3.7 million, versus $1.2 million for the comparable period in 2003, an increase of 200.0%. For the first half of 2004, earnings per share on a diluted basis were $0.09 as compared to $0.03 for the first half of 2003. Waterlink’s sales contribution for the six months ended June 30, 2004 was $22.2 million. Year to date, foreign currency translation had a positive impact of $5.7 million on sales.

Calgon Carbon’s board of directors declared a dividend of $0.03 per share. Dividends will be payable to shareholders of record as of August 13, 2004, and will be payable on September 1, 2004.

Commenting on the quarter, John Stanik, president and chief executive officer of Calgon Carbon, said, “I am pleased with the results as an indicator of the progress we are making in implementing our strategic initiatives. During the remainder of this transition year, we will continue to make the investments and the changes necessary to accelerate improvement in performance over the remaining two years of our strategic plan.”

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner. The company employs approximately 1,200 people at 18 operating facilities and 22 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.

Contact: Gail Gerono, vice president, investor relations, 412 787-6795.

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* Before depreciation and amortization