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Innophos Holdings, Inc. Reports Second Quarter 2009 Results
Date:8/3/2009

s is up to $7.5 million. Innophos' subsidiary will defend against the counterclaims vigorously and assert multiple defenses that management believes will dispose of the claims in Innophos' favor. Although management has determined that contingent liabilities related to the counterclaims require no amounts to be accrued at this time, if the claims were determined adversely to its subsidiary, it is possible they could have a material adverse effect on Innophos' results of operations or financial condition.

Randy Gress continued, "We have taken a number of actions to deal with a very challenging environment. We have reduced employee costs through headcount reductions and reduced operations. We are reducing the amount of high cost rock we are purchasing by bringing in MGA to convert to purified phosphoric acid. Finally, we are investing in the future to improve the flexibility of the Mexican manufacturing network to increase the capability and capacity for food grade products."

The Company is investing to grow its food, beverage and pharmaceutical phosphate business, especially geographically, and also to diversify its raw material supply long term. Projects are underway in the U.S. to debottleneck and increase production capabilities of various specialty salts. Additionally, in conjunction with the investment in the Coatzacoalcos facility to more than double its existing food grade purified phosphoric acid capacity by the first quarter 2010, the site personnel have conducted successful production tests of several additional food grade salts to enable a shift in focus from detergency to the multiple food market segments served by salts and acid. In addition, evaluation efforts are continuing according to plan on the Baja California Sur, Mexico phosphate mineral rights concessions.

In order to maintain its position as the most reliable specialty phosphates supplier to its customers, the Company has also
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SOURCE Innophos Holdings, Inc.
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