Paris, July 30, 2010

Imerys Announces strong 1st Half 2010 Results

Organic* growth in sales, up + 16.0%: upturn in volumes, faster inventory rebuilding in second quarter
Operating margin: 12.8%
Sharp growth in net current income to 122 M€ (+ 161%)
Acquisition of Pará Pigmentos S.A. (PPSA): Brazilian mining and industrial assets bolstered in kaolin for paper and packaging

On Thursday, July 29, 2010, Imerys' Board of Directors, meeting under the chairmanship of Aimery Langlois-Meurinne, examined the Group's financial statements for the 1st half of 2010, as presented by Chief Executive Officer Gérard Buffière.

CONSOLIDATED RESULTS (€ millions)	1st half 2010	1st half 2009	% current change
Sales	1,623.0	1,374.0	+ 18.1%
Current operating income(1)	207.3	110.0	+ 88.4%
Operating margin	12.8%	8.0%
Net income from current operations, Group's share(2)	122.0	46.7	+ 161.3%
Net income, Group's share	119.1	11.7	n.s.
FINANCING
Current operating cash flow(3)	259.0	172.6	+ 50.1%
Current free operating cash flow(4)	127.6	187.7	- 32.0%
Booked capital expenditure	50.7	56.9	- 10.9%
Net financial debt	990.1	1,148.2	- 13.8%
DATA PER SHARE
Net income from current operations, Group's share (2)(5)	€1.62	€0.68	+ 137.8%

(1) Operating income before other operating revenue and expenses, including share of joint operations.

(2) Group's share of net income, before other operating revenue and expenses, net.

(3) EBITDA minus notional tax on current operating income.

(4) Current operating cash flow minus change in operating working capital and paid capital expenditure.

(5) The weighted average number of outstanding shares (adjusted following the rights issue of June 2, 2009)

rose to 75,449,904 in the 1st half of 2010 compared with 68,688,790 in the 1st half of 2009.

Gérard Buffière stated, "Our sales volumes grew in the first half, especially the second quarter, leading to a substantial improvement in operating performance. Inventory rebuilding in the value chain, made a significant contribution to that upturn. We do not feel that this trend can be extrapolated to the coming quarters as the global macro-economic environment remains uncertain. We continue to develop and to optimize our businesses, as reflected in our investment in a new carbonate for paper and packaging plant in China and a kaolin activity in Brazil. In this context, unless the economic environment deteriorates heavily, the Group should achieve an operating margin of more than 12% for fiscal year 2010."

(*) At comparable Group structure and exchange rates.

ECONOMIC ENVIRONMENT

The 1st half of 2010 was marked by further growth in emerging countries – which now represent 26% of the Group's sales. Global economic activity improved, driven by significant inventory rebuilding, which picked up speed in the 2nd quarter, particularly in industrial related sectors.

Business was firm in these markets. The automotive, major industrial equipment and infrastructure sectors benefited from dynamic activity in emerging countries and stimulus measures in some developed countries. In the 1st half of 2010, global steel production was very slightly higher than the pre-crisis levels recorded in the 1st half of 2008, driven by China. In North America, Europe and Japan, however, it remained approximately - 18% below 2008 levels.

Global printing and writing paper production rose + 7% compared with the 1st half of 2009, with an upturn in mature countries and healthy emerging markets. Currency trends contributed to higher performance by European papermakers, whose export sales increased. American producers benefited from positive trends on their local market.

Construction markets, affected by adverse weather conditions in January and February, were slack in Europe and North America, where housing starts remain very low. In France, a moderate upturn was recorded towards the end of the period, reflecting the first effects of the recovery of single-family housing sales observed since mid-2009. The renovation segment held out well overall, especially in Germany and France.

Trends on mass consumption-related markets, such as filtration, remained healthy.

FURTHER IMPROVEMENT IN OPERATING PERFORMANCE

The flexibility of its industrial assets enabled Imerys to draw full benefit from the upswing in sales volumes, which rose 14.1% in the first half. Thanks to the control of overheads and fixed production costs, every business group regained an operating margin of more than 10%.

GOVERNANCE

On June 9, it was announced that Gilles Michel would join Imerys in the fall of 2010. After approval of the project by the Company's relevant corporate bodies, his nomination as Chairman & CEO of Imerys will be proposed at the Shareholders' General Meeting that rules on the 2010 financial statements.

POST CLOSING EVENTS SINCE JUNE 30, 2010

Kaolin for paper and packaging assets acquired in Brazil

Imerys announces the signing of an agreement with the Brazilian group Vale to acquire its 86.2% stake in the Brazilian company Pará Pigmentos S.A. (PPSA), as well as mining rights in Pará State for a total price of approximately USD 70 million.

Through this operation, Imerys is enhancing its Brazilian resources with a kaolin for paper deposit, a processing plant and logistic capacities – a pipeline and harbor terminal – located near its Rio Capim Caulim Pigments for Paper industrial activities. This operation will enable the business group to secure its supply of white pigment for global paper and packaging markets and to control its long-term mining costs more effectively.

The acquisition, financed by available resources, was settled on July 26, 2010. It will be consolidated in the Group's accounts as from August 1, 2010.

OUTLOOK

Economic stimulus plans and the inventory rebuilding movement contributed to the improvement observed in the 1st half. The incentive measures and demand stimulus plans (automotive, construction, infrastructure, etc.) set up in some countries are drawing to an end and visibility remains low for the next quarters, with a macro-economic outlook that varies from one market to another.

In that context, given the actions implemented over the past 18 months, the Group estimates that its operating margin should be greater than 12% in 2010. The priority remains the continuation of internal and external growth, together with very tight management.

DETAILED COMMENTARY ON THE GROUP'S RESULTS

SALES

	Sales H1 2010 (€ millions)	Sales H1 2009 (€ millions)	Change in sales (% previous year)	Change on comparable basis(1) (% previous year)	of which Volume effect	of which Price/Mix effect
1st quarter (2)	751.6	694.3	+ 8.2%	+ 9.5%	+ 7.6%	+ 1.9%
2nd quarter (2)	871.4	679.7	+ 28.2%	+ 22.7%	+ 20.8%	+ 1.9%
1st half	1,623.0	1,374.0	+ 18.1%	+ 16.0%	+14.1%	+1.9%

• Faster growth in sales volumes

High impact of inventory rebuilding, particularly in industrial equipment-related activities
Favorable trend in product price and mix

First half 2010 sales totaled €1,623.0 million (+ 18.1% from 1st half 2009). This rise takes into account:

A limited change in Group structure(3) of €6.0 million;
An exchange rate effect of + €34.9 million, particularly reflecting the euro's depreciation against other currencies, except the US dollar.

At comparable Group structure and exchange rates, the rise in turnover (+ 16.0% vs. 1st half 2009) marks the overall recovery of sales volumes (+ 14.1%). Trends, however, were more contrasted between business groups. The price/mix component improved + 1.9%.

It should be remembered that activity in the 1st half of 2009, which was particularly affected by the economic crisis combined with the inventory reduction movement, forms a favorable basis of comparison for the 1st half of the current year.

(€ millions)	H1 2010 sales	% change H1 2010 vs. H1 2009	% of consolidated H1 2010 sales	% of consolidated H1 2009 sales
Western Europe	782.7	+ 7.8%	48%	53%
United States / Canada	340.0	+ 25.9%	21%	19%
Japan / Australia	78.0	+ 18.3%	5%	5%
Emerging countries	422.3	+ 35.3%	26%	23%
Total	1,623.0	+ 18.1%	100%	100%

Sales by geographic zone

In the 1st half of 2010, the Group's sales in emerging countries grew + 35% compared with the 1st half of 2009 thanks to sound development in China, Eastern Europe, Brazil and India. In North America, where the recovery was significant, sales benefited from the US dollar's further appreciation against the euro.

_______________________________________ (1) At comparable Group structure and exchange rates.

⁽²⁾ Quarterly figures non-audited.

⁽³⁾ Chiefly, divestment of Planchers Fabre (May 2009).

CURRENT OPERATING INCOME(4)(5)

(€ millions)	H1 2010	H1 2009	% Change	% Comparable change(6)
1st quarter	84.1	44.4	+ 89.4%	+ 101.4%
Operating margin	11.2%	6.4%
2nd quarter	123.2	65.6	+ 87.8%	+ 90.0%
Operating margin	14.1%	9.6%
1st half	207.3	110.0	+ 88.4%	+ 94.6%
Operating margin	12.8%	8.0%

• High contribution of volumes

• Fixed costs and overheads kept under control

Current operating income totaled €207.3 million in the 1st half of 2010 (+ 88.4%). This growth takes into account an exchange rate impact of - €6.8 million (due in particular to the Brazilian real's appreciation against the euro and the US dollar). The net effect of changes in Group structure is not significant.

At comparable Group structure and exchange rates, current operating income increased by €104.1 million compared with the 1st half of 2009, thanks to the high contribution of sales volumes (+ €81.6 million). The product price and mix component was favorable (+ €14.7 million) and the Group recorded an overall decrease in variable costs (- €18.1 million) with lower energy bills in all four business groups. Overheads and fixed production costs remained under control, with the + €40.4 million increase from the 1st half of 2009 strictly due to the rise in production volumes and the related costs (personnel, maintenance).

At 12.8%, the Group's operating margin gained 4.8 points compared with the 1st half of 2009.

NET INCOME FROM CURRENT OPERATIONS(7)

The + 161.3% increase in net income from current operations, to €122.0 million, resulted from the following factors:

The sharp rise in current operating income;
Financial expense of €32.2 million (vs. €44.9 million in the 1st half of 2009), including an exchange rate impact of + €2.1 million;
A tax charge of €50.8 million (- €18.7 million in the 1st half of 2009), reflecting an effective taxation rate of 29.0% (28.7% in the 1st half of 2009).

NET INCOME

The €107.4 million growth in the Group's share of net income to €119.1 million takes into account other income and expense, net of tax (- €2.9 million). The gross amount of other income and expense (- €2.5 million) particularly takes into account:

Non-current financial income from the recording of a non-recurring foreign exchange gain of + €10.2 million, following the restructuring of the Group's American subsidiaries' financing;
Depreciation expense for sites restoration: the review of environmental situations of Group industrial sites led to an additional long-term provision being booked for - €7.4 million.

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⁽⁴⁾ Operating income before other operating revenue and expenses.

⁽⁵⁾ Quarterly figures: non audited.

⁽⁶⁾ At comparable Group structure and exchange rates.

⁽⁷⁾ Group's share of net income, before operating revenue and expenses.

CASH FLOW

€ millions	H1 2010	H1 2009
EBITDA	319.2	204.1
Current operating cash flow	259.0	172.6
Change in working capital	(77.1)	93.4
Paid capital expenditure	(56.5)	(79.0)
Current free operating cash flow*	127.6	187.7
Financial expense (net of tax)	(18.8)	(27.3)
Other working capital items	(1.8)	22.3
Current free cash flow	107.0	182.7
* including subsidies, value of divested assets and misc.	2.2	0.7

• Tight management of working capital

• Substantial current free operating cash flow

Taking into account the + 18.1% rise in turnover compared with the same period in 2009, operating working capital increased by €77.1 million. Thanks to continued discipline in operating management, inventory only rose + 6%. Working capital represents 21.4% of annualized sales of the previous quarter. Excluding €76 million of factoring in trade receivables as on June 30, 2010, this ratio amounts to 23.6% (vs. 27.9% as on June 30, 2009).

Booked capital expenditure totaled €50.7 million in the 1st half of 2010. It represents 47% of depreciation expense(8) ( vs. 63% in 1st half 2009) and mainly concerned maintenance of industrial assets.

€ millions	June 30, 2010	December 31, 2009	June 30, 2009
Paid dividends	(76.0)	(63.6)	-
Net debt	990.1	964.3	1,148.2
Shareholders' equity	2,140.5	1,855.8	1,808.1
EBITDA	319.2	416.6	204.1
Net debt/ shareholders' equity	46.2%	52.0%	63.5%
Net debt / EBITDA	1.9x	2.3x	2.5x

STRONG FINANCIAL STRUCTURE

Consolidated financial net debt remains below €1 billion as on June 30, 2010, thanks to the cash flows generated by the Group and despite the impact of the US dollar's appreciation on debt towards the end of the 1st half (currency translation effect on net financial debt). At €990.1 million, financial debt takes into account the €75.5 million in dividends paid out on May 11, plus €0.5 million in dividends paid to minority shareholders in subsidiaries. It is worth noting that in 2009 the dividend was paid out on July 7.

As on June 30, 2010, Imerys' financial resources totaled almost €2.3 billion with no significant repayment due before the end of 2012.

_________________________________________________ (8) Booked capital expenditure divided by fixed asset depreciation expense.

COMMENTARY BY BUSINESS GROUP

Minerals for Ceramics, Refractories, Abrasives & Foundry (32% of consolidated sales)

(€ millions)	1st half 2010	1st half 2009	Current change	Comparable change (9)
Sales	536.6	383.2	+ 40.1%	+ 38.4%
Current operating income (10)	66.9	13.8	+ 385.9%	+ 402.1%
Operating margin	12.5%	3.6%
Booked capital expenditure	20.4	25.1	- 18.7%
As % of depreciation expense	63%	94%

• Faster sales growth in 2nd quarter, partly driven by inventory rebuilding

• Good control of fixed production costs and overheads

Minerals for Refractories, Fused Minerals (particularly Abrasives) and Graphite markets, which had been worst hit by the 2009 global economic crisis, benefited from the upturn in end demand in the steel, industrial equipment and automotive sectors and from gradual inventory rebuilding that picked up speed in the second quarter.

Minerals for Ceramics markets only grew slightly, with no significant improvement seen in the construction sector in developed countries. Business is growing in emerging zones (North Africa, Middle East, Asia) where Imerys won new customers.

Several production lines that had been idled in 2008 and 2009 came back on stream during the first half. Manufacturing efficiency enabled all the business group's activities to serve demand growth effectively while maintaining good productivity. Over the first half, capital expenditure remained low.

Sales, at €536.6 million for the 1st half of 2010, rose + 40.1% compared with the 1st half of 2009 (which was - 35.7% down on 1st half 2008). Analysis of the change shows:

A change in Group structure of €0.6 million,
An exchange rate effect of + €7.1 million.

The sharp upturn in demand in the Fused Minerals, Minerals for Refractories, Graphite and Carbon businesses and, to a lesser extent, in Minerals for Ceramics, explains the recovery in turnover, which is also driven by sales of higher valueadded products.

Multiplied by 4 compared with the 1st half of 2009, current operating income, at €66.9 million, factors in a change in Group structure of + €0.6 million and an exchange rate effect of - €2.8 million.

At comparable Group structure and exchange rates, the very significant increase in sales volumes more than covers the limited rise in production costs (selective recruitment, use of agency workers). The product/mix component is favorable and variable costs are essentially in line with the previous year.

_________________________________________

⁽⁹⁾ At comparable Group structure and exchange rates.

⁽¹⁰⁾ Operating income before operating revenue and expenses.

Performance & Filtration Minerals (18% of consolidated sales)

(€ millions)	1st half 2010	1st half 2009	Current change	Comparable change(11)
Sales	300.4	246.3	+ 22.0%	+ 18.5%
Current operating income(12)	34.8	9.1	+ 280.9%	+ 250.2%
Operating margin	11.6%	3.7%
Booked capital expenditure	7.2	4.7	+ 53.2%
As % of depreciation expense	34%	25%

• Stable markets overall with a significant inventory rebuilding effect

• Improved productivity in the United States

During the 1st half of 2010, the markets served by Performance and Filtration Minerals benefited from the significant effect of inventory rebuilding by customers and distributors.

Although the renovation sector held out well, the construction market remained slack in North America and Europe. Consumer goods markets (beverages, personal care products, etc.) grew slightly.

The industrial optimization plan for Filtration Minerals in the United States enabled the activity to meet demand efficiently in the 1st half of 2010. Capital expenditure for the period mainly concerns maintenance operations.

Sales amounted to €300.4 million in the 1st half of 2010 (+ 22.0%). This increase factors in an exchange rate impact of + €8.7 million. At comparable Group structure and exchange rates, sales growth reflects the significant upturn in volumes, partly related to inventory rebuilding.

Current operating income totaled €34.8 million, up + €25.7 million. It takes into account a favorable currency translation effect of + €2.9 million. At comparable Group structure and exchange rates, the increase works out at + €22.8 million. The sharp rise in volumes came with an increase in fixed production costs and overheads.

Pigments for Paper (22% of consolidated sales)

(€ millions)	1st half 2010	1st half 2009	Current change	Comparable change (11)
Sales	356.3	309.5	+ 15.1%	+ 12.0%
Current operating income(12)	37.1	15.0	+ 146.7%	+ 195.6%
Operating margin	10.4%	4.9%
Booked capital expenditure	18.9	11.6	+ 62.9%
As % of depreciation expense	55%	45%

• Upturn in paper production in developed countries

• Start-up of a new plant in China

Global production of printing and writing paper, which recovered from late 2009, showed + 7% growth compared with the 1st half of 2009, which marked a low point. While business remains dynamic in emerging countries (+ 5%), the upturn is significant in mature countries (+ 8%), with distributors and printers rebuilding their paper inventory.

_________________________________________________________________

⁽¹¹⁾ At comparable Group structure and exchange rates.

⁽¹²⁾ Operating income before other operating revenue and expenses.

The business group's strategic development continues in Asia, particularly in carbonates with the commissioning in the second quarter of a new plant in China (Yueyang, Hunan province), under a joint venture with the Tiger Forest & Paper group. This new precipitated calcium carbonate (PCC) production unit is next to the new Yueyang Paper mill and has 90 KT annual capacity.

Sales, at €356.3 million in the 1st half of 2010, were up + 15.1% with a + €9.6 million foreign exchange effect. At comparable Group structure and exchange rates, growth mainly reflects the sharp rise in sales volumes relating to:

The business group's extensive presence in Europe and North America, where inventory rebuilding was more significant,
Favorable currency trends (US dollar's appreciation vs. the euro), benefiting European papermakers,
The success of new products launched since 2009 (particularly the new "Barrisurf" and "e-Type" American kaolin ranges),
New capacities opened in India and China.

Current operating income totaled €37.1 million in the 1st half of 2010 (+ €22.1 million), taking into account a foreign exchange effect of - €7.4 million. At comparable Group structure and exchange rates, the business group's operating performance benefits from the increase in sales volumes, which came with good control of fixed costs and overheads.

Materials and Monolithics

(28% of consolidated sales)

(€ millions)	1st half 2010	1st half 2009	Current change	Comparable change(13)
Sales	451.4	443.4	+ 1.8%	+ 0.6%
Current operating income(14)	92.4	84.3	+ 9.6%	+ 9.6%
Operating margin	20.5%	19.0%
Booked capital expenditure	3.3	14.6	- 77.4%
As % of depreciation expense	18%	81%

• Positive signs in new housing in France

• Recovery in Monolithic Refractories

In France, advanced indicators for the construction sector (new housing sales, building permits) show more positive trends and now reflect a turnaround in new individual housing starts: down approximately - 15%(15) over 12 rolling months, they gained + 6% in the 2nd quarter compared with the same period the previous year.

After being particularly affected by adverse weather conditions in January and February, renovation picked up in the 2nd quarter but remained slightly down over the 1st half.

In that context, the clay products market, for the 1st half compared with the same period last year, posted a - 8%(16) decrease in volumes for roofing items but a + 9 %(16) increase for bricks, thanks to the gradual replacement of concrete.

Monolithic Refractories markets benefited from the strong upturn in steelmaking. Other consumption segments (cement, incineration, petrochemicals, etc.), which were less affected by the economic crisis, improved slightly. They benefited from the resumption of maintenance operations, with the number of orders related to new furnace construction projects remaining limited.

_____________________________________________________________

⁽¹³⁾ At comparable Group structure and exchange rates.

⁽¹⁴⁾ Operating income before other operating revenue and expenses.

⁽¹⁵⁾ Source: new individual housing starts – French Ministry of Ecology, Energy, Sustainable Development and Sea.

⁽¹⁶⁾ FFTB, French Federation of roof tiles and bricks – temporary data.

In Building Materials, productivity capital projects resumed with the modernization of two brick manufacturing lines in Colomiers (Haute-Garonne, France) and La Boissière du Doré (Loire-Atlantique, France). Moreover, the Cuntis, Spain, Kiln Furniture plant closed and its production was transferred to the Hungarian site.

The business group's sales increased + 1.8% compared with the 1st half of 2009, at €451.4 million. This includes:

A change in Group structure (17) of €5.4 million,
An exchange rate impact of + €10.7 million.

At comparable Group structure and exchange rates, the upturn observed in Monolithic Refractories offset lower sales volumes in Building Materials.

Current operating income was €92.4 million, (+ €8.1 million vs. 1st half 2009). The change in Group structure (- €0.5 million) balanced out exchange rate impact (+ €0.5 million). At comparable Group structure and exchange rates, strict cost management offset the lower contribution of Building Materials.

Availability of information

The present press release is available on the Group's website www.imerys.com, and can be consulted from the home page in the "Press Releases" section.

Today at 2 pm (CET), Imerys is holding a teleconference at which the results for the 1st half of 2010 will be commented on. This conference will be webcast live on the Group's internet site, www.imerys.com.

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Financial communication diary

• 3rd quarter results 2010: November 3.

This date is given for guidance only and may be updated on the Group's website at the address www.imerys.com, in the Investors & Analysts / Financial Agenda section.

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The world leader in adding value to minerals, Imerys is active in 47 countries through more than 240 industrial and commercial sites. The Group achieved €2.8 billion in sales in 2009. Imerys mines and processes minerals from reserves with rare qualities in order to develop solutions that improve its customers' product performance and manufacturing efficiency. The Group's products have a great many applications in everyday life, including construction, personal care, paper, paint, plastic, ceramics, telecommunications and beverage filtration.

More comprehensive information about Imerys may be obtained from its Internet website (www.imerys.com) under Regulated Information, particularly in its Document de Reference filed with Autorité des marchés financiers on April 1, 2010 under number D.10-0205 (also available from the Autorité des marchés financiers website, www.amf-france.org). Imerys draws the attention of investors to chapter 4, "Risk Factors", of its Document de Référence.

Warning on projections and forward-looking statements: This document contains projections and other forward-looking statements. Investors are cautioned that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.

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