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Holland Colours NV

Earnings Release Aug 6, 2010

3850_iss_2010-08-05_1be53d7c-f6d1-4a01-8e6b-253de23ee1c8.pdf

Earnings Release

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PRESS RELEASE HOLLAND COLOURS

Holland Colours realizes considerably higher turnover in first quarter 2010/2011

Key developments:

  • 32% higher turnover
  • Very strong improvement of operating and net result
  • New financing agreement
  • Turnover expectation for first half year raised

In the first quarter of the fiscal year 2010/2011 Holland Colours realized a 32% higher turnover than during the same period last year. It should be noted however that the basis for comparison was more favorable this quarter. Turnover in the first quarter of the previous fiscal year was 26% lower than the year before. Turnover in the first quarter of 2010/2011 is at about the level of before the economic crisis. Currency effects, especially as a result of a higher exchange rate of the US dollar, did have a positive effect on the turnover this quarter

Due to the higher turnover, improvement of the gross margin and despite a limited increase of operating costs the first quarter could be closed with a much stronger operating and net result compared to the same period last year.

In the first quarter the turnover in the focus market Building & Construction showed a considerable increase compared to the first quarter last year. This increase is for the greater part for the account of the Division Americas but also Europe showed a strong improvement compared to the same period last year. Replenishment of inventory in the pipeline had a positive influence on the turnover.

The focus market Packaging realized a strong increase in turnover compared to the first quarter last year. All divisions contributed to this growth but each to a different extent. Especially Americas and Asia did better than last year. With a modest growth Europe stayed somewhat behind.

The focus market Silicones & Elastomers also showed a strong increase in turnover compared to the same period last year. All divisions realized a higher turnover in this focus market.

The higher activity level has led to a strong increase of working capital. The availability of raw materials, amongst others due to a decrease of inventory at suppliers, has come under pressure in the first quarter. To keep fulfilling customer demand the inventory of critical raw materials has been temporarily increased. Despite the increased working capital the Total Debt / EBITDA ratio stayed well within the ratio's agreed with the bank.

Recently Holland Colours has reached a new financing agreement. With this agreement a decrease of interest rates has been realized. The bank covenants and securities given are nearly unchanged compared to the end of March 2010.

The results for the first half of fiscal year 2009/2010 will be published Thursday November 4, 2010. Barring unforeseen circumstances, a strong increase in turnover and a more than proportional increase of the net result is foreseen for the first half-year 2010/2011. Due to the uncertain economic developments, however, Holland Colours does not make any statements for the financial year 2010/2011 as a whole.

Apeldoorn, August 5, 2010

HOLLAND COLOURS

Corporate profile

  • Approximately 380 employees
  • 2,000 customers in 80 countries
  • 10 (production) sites
  • Worldwide network of agents
  • Each employee is stockholder

Holland Colours was founded in 1979 and has been listed on the NYSE Euronext Amsterdam Stock Exchange since 1989. It is an independent Dutch corporation with offices in North America and Mexico, Europe and Asia. Holland Colours makes products for coloring synthetic materials, the main products being Holcobatch and Holcoprill. Both these products have the advantage of being free flowing, dust-free, and very easy to dose. Furthermore, Holland Colours makes pastes for coloring silicones, elastomers, PET packaging and other applications.

Holland Colours concentrates worldwide on three focus markets:

  • Building & Construction (especially PVC applications)
  • Packaging (especially PET applications)
  • Silicones & Elastomers

Around 85% of turnover is realized in these three markets.

Virtually the entire production is generated by our four principal plants in the Netherlands, Hungary, the United States and Indonesia.

Holland Colours is organized in three regional divisions that operate as profit centers in each specific region: Europe (including the Middle East and Africa), Americas and Asia. The global turnover distribution is Europe 60%, Americas 30% and Asia 10%.

Important dates:

November 4, 2010 Publication of the 2010/2011 half-yearly figures (after stock-exchange close)

HOLLAND COLOURS NV

PO Box 720 | 7300 AS Apeldoorn | The Netherlands T +31 (0)55 368 0700 | F +31 (0)55 366 29 81 [email protected] www.hollandcolours.com

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