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

recently launched an enterprise resource planning ("ERP") system and business process redesign project to upgrade its technology. Future expenditures on the ERP project are expected to total approximately $18 to $21 million by the end of 2010, with approximately two-thirds of the amount as capital expenditures and one-third as operating expense.

Management continues to project total 2009 capital expenditures to approximate $30 million.

Legal Update

As previously reported, Innophos' Mexican subsidiary has been contesting fresh water tax assessments for 1998 to 2002 of approximately $25 million (plus interest) sought to be collected by the Mexican National Waters Commission, or CNA. The case was up on a second appeal by the agency from the Mexican tax court that had previously ruled in Innophos' favor. On July 31, 2009, Mexican counsel advised that the case was being remanded again by the intermediate appellate court to the tax court, either to address CNA's arguments or for further proceedings on numerous remaining defenses asserted by our subsidiary. Due to the summer court holiday in Mexico, the full appellate decision is not expected to be available for a number of weeks. Nevertheless, in the event of a liability for the assessment in question, Innophos has obtained a final judgment in the New York State courts that it is entitled to full indemnity from Rhodia, S.A. from whom Innophos acquired the Mexican subsidiary in 2004. Management has not changed its view that an accrual is not required.

About Innophos Holdings, Inc.

Innophos Holdings, Inc. (www.innophos.com), the holding company for a leading North American manufacturer of specialty phosphates, serves a diverse range of customers across multiple applications, geographies and channels. Innophos offers a broad suite of products used in a wide variety of food and beverage, consumer products, p
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SOURCE Innophos Holdings, Inc.
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