These unaudited results 
allowed Clariant to further strengthen their balance sheet and reduce net debt by the end of 2008.

 Clariant went through two distinct phases during fiscal year 2008. In 
the first nine months, the company continued to benefit from the 
then stable economic environment. The focus on improving operational 
performance and restructuring paid off.

In the fourth quarter, 
Clariant were significantly impacted by an unprecedented decline in
 global economic activity. The demand in some of Clariant’s customer 
industries such as textile, leather, automotive and construction, decreased dramatically in line with the overall development of the 
world economy. Other markets such as agrochemicals, oil services etc showed resilience against the downturn.

As a result of the deterioration of the leather and textile markets
 and their uncertain evolution in 2009, Clariant revised the plans for 
these two businesses, which led to an impairment of approximately CHF
180 million to be booked in Q4, 2008.

 Clariant have reacted immediately to the unfavorable demand
 development by slowing or shutting down production in the businesses
 that have been impacted, using instruments such as releasing 
temporary workforce, reducing overtime, compulsory holiday periods 
and short time work.

Going forward, Clariant will adapt their structures to the economic
 situation and by the same token address the performance gap towards
 their peers by decisively downsizing the company and reducing 
expenditure – in particular SG&A costs. Clariant plan to
 substantially decrease personnel costs and as a first step reduce an 
additional thousand job positions mainly in the SG&A area. This is in
 addition to the approximately 2,200 headcount reduction announced in 
2006 and almost completed by the end of 2008.

The clear focus in 2009
 will be on cash generation.

 In line with this focus on cash generation, the board of directors
 will recommend to Clariant’s 14th General Assembly on April 2 not to 
pay dividends, grants and other shareholder payouts for 2008.

Details on Clariant’s audited full year 2008 results and 
restructuring measures will be released on February 17.