Mersen — Earnings Release 2008

Jan 27, 2009

During the fourth quarter of 2008, Carbone Lorraine posted consolidated sales of €190 million, up 6% on a like-for-like basis and up 10% on a reported basis. As forecast, the quarter's sales were boosted by substantial deliveries of anticorrosion equipment.

Over the year as a whole, sales came to €731 million, up 8% on a like-for-like basis and up 5% on a reported basis owing to negative currency effects (-4%). Taking acquisitions into account, sales advanced by 9%.

Sales	Q4 2008 (€ m)	% change* Q4 2008/ Q4 2007	12m 2008 (€ m)	% change* 12m 2008/ 12m 2007
Advanced Materials and Technologies	80	26%	278	12%
Electrical Applications	42	-14%	198	1%
Electrical Protection	68	3%	255	10%
Group total	190	6%	731	8%

*on a like-for-like basis, i.e. at comparable scope and constant exchange rates – Unaudited data

Advanced Materials and Technologies

The sales recorded by the Advanced Materials and Technologies division came to €80 million during the fourth quarter, up 26% on a like-for-like basis.

This strong growth was attributable to the substantial deliveries of anticorrosion equipment across all the Group's geographical regions and principally in the acetic acid market. New orders continued to come in at a brisk pace during the quarter, particularly in the solar segment.

PRESS RELEASE

Paris, January 27, 2009

In spite of a tangible slowdown in conventional industrial applications, sales of graphite equipment for high-temperature applications continued to make headway on the back of strong demand from the solar industry.

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Sales came to €278 million over the full year. They rose by 12% on a like-for-like basis.

Electrical Applications

Fourth-quarter sales came to €42 million. They dropped by 14% on a like-for-like basis.

This decline was attributable solely to sales to the automobile industry, which contracted very sharply in the final months of the year across all the Group's geographical regions.

A slowdown was also seen in Europe and North America in certain process industries (steel-making, cement), but was offset by the momentum of the wind energy market.

Over the year as a whole, the Electrical Applications division recorded sales of €198 million, up 1% on a like-for-like basis.

Electrical Protection

The sales generated by the Electrical Protection division came to €68 million during the fourth quarter, up 3% on a like-for-like basis. The weaker pace of growth compared with previous quarters was notably attributable to the high comparative figures for deliveries in the fourth quarter of 2007 in the Asian rail and electrochemicals markets.

In North America, the pace of sales growth slowed down, but remained positive during the fourth quarter. In Europe, sales of general-purpose fuses contracted, but this decline was more than offset by higher sales of ultra-rapid fuses, power-isolating switches and coolers.

Over the year as a whole, the Electrical Protection division's sales advanced by 10% on a like-forlike basis to reach €255 million.

Outlook

The weakening in the global economy has started to affect our businesses in their traditional industrial markets.

Even so, the Group's positioning in renewable energies, energy efficiency and Asia enabled it to deliver strong growth during 2008, including in the fourth quarter, in line with the targets stated for the year.

This positioning, as well as recent acquisitions, will provide an invaluable source of resilience during 2009 given the highly uncertain economic environment.

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About Carbone Lorraine

World leader of graphite solutions and electrical components, Carbone Lorraine specializes in the implementing of high technology materials in demanding industrial environments and in the development of systems, which are fundamental to the smooth operation of the motor and the protection of electrical equipment. With over 85% of its sales carried out internationally, the Group holds leadership positions in all of its occupations.

Advanced Materials and Technologies:		N°1 worldwide in anti-corrosion equipment in graphite
	-	N°2 worldwide in high temperature applications of isostatic graphite
Electrical Applications:	-	N°1 worldwide in brushes for electrical motors
Electrical Protection:	-	N°1 worldwide in fuses for powerful semi-conductors
	-	N°2 worldwide in industrial fuses

The Group is listed at Premier Marché de la Bourse de Paris and is a part of the following indices CAC Mid100, SBF120 et Next 150. Find Carbone Lorraine on Bloomberg: CRL FP and on Reuters: CBLP.PA

Visit our Internet website www.carbonelorraine.com

Analyst and Investor Contact

Sébastien Desarbres VP Investor Relations Carbone Lorraine

Tel.: +33 (0)1 46 91 54 49 dri@carbonelorraine.com

Press Contact

Publicis Consultants Vilizara Lazarova

Tel.: +33 (0)1 44 43 74 81 vilizara.lazarova@consultants.publicis.fr

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