Arch Chemicals Reports Second Quarter 2006 Earnings in Line with Guidance; Reaffirms Full Year Earnings Outlook

Highlights:

-- Second quarter earnings from continuing operations were $1.22 per share, up 18 percent, compared to $1.03 for the previous period; sales increased eight percent compared to the prior year period.

-- HTH water products operating income increased 74 percent over the prior year quarter.

-- Third quarter earnings per share from continuing operations are expected to be in the $0.20 to $0.30 range, compared to $0.28 for the prior year quarter.

-- The Company reaffirms full year earnings guidance to be in the $1.60 to $1.70 range.

ARCH CHEMICALS, INC. (NYSE: ARJ) announced for the second quarter2006, sales were $446.1 million compared to $411.3 million in thecorresponding period in 2005. Segment operating income for the secondquarter was $49.7 million in 2006 compared to $40.0 million in 2005.Earnings from continuing operations were $1.22 per share for thesecond quarter 2006 on $29.6 million of income, compared to $1.03 pershare on income of $24.5 million a year ago.

"The significant, year-over-year improvement in our second quartersales and earnings results was driven by the continued success of ourambitious Water Products' margin-improvement initiatives and anotherstrong quarter from Performance Urethanes," said Chairman, Presidentand CEO Michael E. Campbell. "These strong performances, combined withrecord sales of biocides used in antidandruff shampoos and marinepaints, more than offset the impact of persistently high raw materialcosts which adversely affected several of our businesses,particularly, Wood Protection. To mitigate these high costs, wecontinue to tightly control spending and raise prices whenever andwherever possible."

The following compares segment sales and operating income(including equity in earnings of affiliated companies) for the secondquarters of 2006 and 2005. The Company has revised the 2005 segmentoperating income; see Appendix for further information.

Treatment Products

Treatment Products reported sales of $375.9 million and operatingincome of $54.0 million compared with sales of $355.1 million andoperating income of $41.8 million in 2005.

HTH Water Products

HTH water products reported sales of $197.8 million and operatingincome of $41.4 million in 2006 compared to sales and operating incomeof $183.2 million and $23.8 million respectively, in 2005.

Sales increased $14.6 million, or approximately eight percent,principally due to favorable pricing for both branded and non-brandedpool treatment products in the North American market. The increase involumes from the acquisition of the remaining 50 percent of theCompany's water products joint venture, Nordesclor ($6.1 million orthree percent), was more than offset by lower volumes principally dueto the shedding of unprofitable business in North America.

Operating income increased $17.6 million primarily as a result ofthe improved pricing for the North American product lines. Inaddition, operating results benefited from favorable product mix, costreduction initiatives and the positive contribution of the acquiredbusiness. HTH water products also achieved lower freight anddistribution expenses in 2006 as a result of actions taken thataddressed the inefficiencies in the distribution channels, whichnegatively impacted 2005.

Personal Care and Industrial Biocides

Personal care and industrial biocides reported sales of $75.5million and operating income of $11.6 million compared to sales andoperating income of $70.6 million and $11.1 million, respectively, in2005.

Sales increased $4.9 million, or approximately seven percent, dueto higher volumes that are attributable to record demand for biocidesused in antidandruff products and in marine antifouling paints. Higherpricing in the building products and metalworking fluids markets tomitigate increased raw material costs were mostly offset bycompetitive pressures in the emulsions and in-can preservationmarkets.

Operating income increased $0.5 million, primarily due to improvedmargins from the higher sales volumes, partially offset by higher rawmaterial costs.

Wood Protection and Industrial Coatings

Wood protection and industrial coatings reported sales of $102.6million and operating income of $1.0 million compared to sales andoperating income of $101.3 million and $6.9 million, respectively, in2005.

Sales increased $1.3 million, or approximately one percent, due toimproved pricing partially offset by the unfavorable effect of foreignexchange. The improved pricing is the result of price increases tomitigate higher raw material costs for Wolman(R) E products used inresidential applications in the wood protection business, as well ashigher raw material costs principally for polyurethane and othersolvent-based products in the industrial coatings business. Anincrease in wood protection's volumes of Tanalith(R) E products usedin residential applications in Europe was offset by a decrease involumes in the Italian domestic market in the industrial coatingsbusiness.

Operating income decreased $5.9 million over the prior yearprimarily due to lower margins for the wood protection business and,to a lesser extent, the industrial coatings business as a result ofthe higher raw material costs which negatively impacted thebusinesses. These results were partially offset by improved equity inearnings of the Koppers joint venture that were negatively impacted in2005 by legal expenses associated with an investigation by the NewZealand Commerce Commission ($1.5 million).

Performance Products

Performance Products reported sales of $70.2 million and operatingincome of $5.5 million compared with sales and operating income of$56.2 million and $3.8 million, respectively, in 2005.

Performance urethanes sales increased approximately 28 percentover the prior year due to higher volumes and improved pricing. Theincrease in volumes was due to stronger demand across most productlines, particularly specialty polyols, due to new business. Theimproved pricing was principally due to successful price increases tomitigate higher raw material costs. Operating income improved $2.0million as a result of higher sales volumes and improved margins fromhigher pricing.

Hydrazine sales were comparable to the prior year period as lowervolumes of Ultra Pure(TM) Hydrazine were offset by facility fees fromthe new U.S. Government contract. Operating income decreased as aresult of unfavorable product mix.

General Corporate Expenses

General corporate unallocated expenses increased by $4.2 millionprincipally due to higher compensation related costs from the increasein stock price for the Company's stock-based long-term incentiveawards and stock-based deferred compensation accounts. In addition,the Company incurred increased costs associated with its U.K. pensionplans and the accounts receivable securitization program.

2006 Outlook

The Company anticipates earnings from continuing operations in thethird quarter 2006 to be in the $0.20 to $0.30 per share range,compared to $0.28 for the prior-year quarter.

For full year 2006, sales are now expected to increaseapproximately seven to nine percent over 2005 and earnings per sharefrom continuing operations are expected to range from $1.60 to $1.70.The Company now forecasts HTH water products total year sales ofapproximately $475 million, compared to its previous guidance ofapproximately $460 million, and operating margins are expected to bein the 7.5 to 8.5 percent range, up from its earlier guidance in theseven to eight percent range. This improvement is expected to offsetthe adverse impact in the wood protection business from persistentlyhigh copper raw material costs. Depreciation and amortization isestimated to be approximately $45 million. Capital spending isanticipated to be in the $30 to $35 million range. Pension expense isexpected to increase by approximately $7 million over prior year andthe effective tax rate is assumed to be 33 percent.

Note: All references to earnings per share above reflect dilutedearnings per share.

About Arch

Headquartered in Norwalk, Connecticut (USA), Arch Chemicals, Inc.is a global Biocides company with annual sales of approximately $1.3billion. Arch and its subsidiaries provide innovative, chemistry-basedsolutions to control the growth of harmful microbes. The Company'sconcentration is in water, hair and skin care products,pressure-treated wood, paints and coatings, building products andhealth and hygiene applications. Arch Chemicals operates in twosegments: Treatment Products and Performance Products. Together withits subsidiaries, Arch has approximately 3,000 employees andmanufacturing and customer-support facilities in North and SouthAmerica, Europe, Asia and Africa. For more information, visit theCompany's Web site at http://www.archchemicals.com.

-- Listen in live to Arch Chemicals' second quarter 2006 earnings conference call on Tuesday August 1, 2006 at 11:00 a.m. (ET) at http://www.archchemicals.com.

-- If members of the public wish to access Arch's live earnings call in a listen-only mode, dial: (800) 289-0493, passcode 6745570, in the United States or (913) 981-5510, passcode 6745570, outside the United States.

-- A telephone replay will be available from 3:00 p.m. on Tuesday, August 1, 2006 until 6:00 p.m. (ET) on Tuesday August 8, 2006. The replay number is (888) 203-1112, passcode 6745570; from outside the United States, please call (719) 457-0820, passcode 6745570.

Except for historical information contained herein, theinformation set forth in this communication contains forward-lookingstatements that are based on management's beliefs, certain assumptionsmade by management and management's current expectations, outlook,estimates and projections about the markets and economy in which theCompany and its various businesses operate. Words such as"anticipates," "believes," "estimates," "expects," "forecasts,""opines," "plans," "predicts," "projects," "should," "targets" andvariations of such words and similar expressions are intended toidentify such forward-looking statements. These statements are notguarantees of future performance and involve certain risks,uncertainties and assumptions ("Future Factors"), which are difficultto predict. Therefore, actual outcomes and results may differmaterially from what is expected or forecasted in such forward-lookingstatements. The Company undertakes no obligation to update publiclyany forward-looking statements, whether as a result of future events,new information or otherwise. Future Factors which could cause actualresults to differ materially from those discussed include but are notlimited to: general economic and business and market conditions;recession or lack of moderate growth in U.S. and European economies;increases in interest rates; economic conditions in Asia; worseningeconomic and political conditions in Venezuela; changes in foreigncurrencies against the U.S. dollar; customer acceptance of newproducts; efficacy of new technology; changes in U.S. laws andregulations; increased competitive and/or customer pressure; theCompany's ability to maintain chemical price increases;higher-than-expected raw material costs and availability for certainchemical product lines; an increase in anti-dumping duties on certainproducts; increased foreign competition in the calcium hypochloritemarkets; unfavorable court, arbitration or jury decisions orunfavorable tax matters; the supply/demand balance for the Company'sproducts, including the impact of excess industry capacity; failure toachieve targeted cost-reduction programs; capital expenditures inexcess of those scheduled; environmental costs in excess of thoseprojected; the occurrence of unexpected manufacturinginterruptions/outages at customer or company plants; reduction inexpected government contract orders; a decision by the Company not tostart up the hydrates manufacturing facility; unfavorable weatherconditions for swimming pool use; inability to expand sales in theprofessional pool dealer market; and gains or losses on derivativeinstruments.

Arch Chemicals, Inc.
Condensed Consolidated Statements of Income (a)
(In millions, except per share amounts)

----------------------------------------------------------------------
Three Months Six Months
Ended June 30, Ended June 30,
2006 2005 2006 2005
----------------------------------------------------------------------

Sales $446.1 $411.3 $763.9 $712.6
Cost of Goods Sold 317.4 294.6 547.3 512.2
Selling and Administration 74.0 71.1 143.1 140.8
Research and Development 5.3 5.3 9.9 10.3
Interest Expense, Net 5.5 5.8 10.8 10.2
----------------------------------------------------------------------
Income from Continuing
Operations Before Equity
in Earnings of Affiliated
Companies and Taxes 43.9 34.5 52.8 39.1
Equity in Earnings
(Losses) of Affiliated
Companies 0.3 (0.3) 0.5 0.6
Income Tax Provision 14.6 9.7 17.6 11.6
----------------------------------------------------------------------
Income from Continuing
Operations 29.6 24.5 35.7 28.1
Loss from Discontinued
Operations, Net of Tax (b) (0.1) - (0.5) -
Gain on Sale of Discontinued
Operations, Net of Tax (c) - 2.9 - 2.9
----------------------------------------------------------------------
Net Income $29.5 $27.4 $35.2 $31.0
======================================================================

Basic Income Per
Share:
Continuing Operations $1.23 $1.04 $1.49 $1.19
Loss from Discontinued
Operations, Net of Tax (b) - - (0.02) -
Gain on Sale of Discontinued
Operations, Net of Tax (c) - 0.12 - 0.12
----------------------------------------------------------------------
Basic Income Per Share $1.23 $1.16 $1.47 $1.31
======================================================================

Diluted Income Per
Share:
Continuing Operations $1.22 $1.03 $1.47 $1.18
Loss from Discontinued
Operations, Net of Tax (b) - - (0.02) -
Gain on Sale of
Discontinued Operations,
Net of Tax (c) - 0.12 - 0.12
----------------------------------------------------------------------
Diluted Income Per Share $1.22 $1.15 $1.45 $1.30
======================================================================

Weighted Average
Common Stock Outstanding -
Basic 24.0 23.6 24.0 23.6
Weighted Average
Common Stock Outstanding -
Diluted 24.3 23.8 24.2 23.8
----------------------------------------------------------------------

(a) Unaudited.

(b) Represents the results of operations of the CMS business which is
accounted for as an Asset Held For Sale.

(c) Represents the recovery of GBP 1.7 million (approximately $2.9
million) related to two outstanding notes from the sale of the
Hickson organics Castleford operations that were previously
reserved as of December 31, 2004 due to the significant
uncertainty concerning the viability of the purchaser. The Company
received the cash payment on July 19, 2005 for the principal and
interest on these outstanding notes.

Arch Chemicals, Inc.
Condensed Consolidated Balance Sheets
(In millions, except per share amounts)

----------------------------------------------------------------------
June 30, December 31,
2006 (a) 2005
----------------------------------------------------------------------

Assets:
Cash & Cash Equivalents $49.0 $43.1
Accounts Receivable, Net (b) 160.3 133.1
Short-Term Investment (b) 84.0 68.4
Inventories, Net 207.0 172.0
Other Current Assets 37.9 39.8
Assets Held For Sale 2.8 8.3
------------------------------------------------------------------
Total Current Assets 541.0 464.7
Investments and Advances - Affiliated
Companies at Equity 6.1 5.7
Property, Plant and Equipment, Net 185.9 191.4
Goodwill 216.5 211.5
Other Intangibles 142.3 140.7
Other Assets 51.5 47.9
------------------------------------------------------------------
Total Assets $1,143.3 $1,061.9
------------------------------------------------------------------

Liabilities and Shareholders' Equity:

Short-Term Borrowings $7.8 $8.5
Current Portion of Long-Term Debt (c) 148.7 3.5
Accounts Payable 197.2 174.6
Accrued Liabilities 88.5 88.9
Liabilities Associated with Assets Held
For Sale 2.6 9.1
------------------------------------------------------------------
Total Current Liabilities 444.8 284.6
Long-Term Debt 65.4 217.8
Other Liabilities 216.2 194.5
------------------------------------------------------------------
Total Liabilities 726.4 696.9
Commitments and Contingencies
Shareholders' Equity:
Common Stock, Par Value $1 Per Share,
Authorized 100.0 Shares:
24.0 Shares Issued and Outstanding
(23.6 in 2005) 24.0 23.6
Additional Paid-in Capital 433.4 422.2
Retained Earnings 62.0 36.4
Accumulated Other Comprehensive Loss (102.5) (117.2)
------------------------------------------------------------------
Total Shareholders' Equity 416.9 365.0
------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $1,143.3 $1,061.9
------------------------------------------------------------------

(a) Unaudited.

(b) The Company sold certain accounts receivable through an accounts
receivable securitization program (see Form 10-K for additional
information). As a result, accounts receivable have been reduced,
and the Company's retained interest in such receivables have been
reflected as a short-term investment. As of June 30, 2006, the
Company had sold $60.0 million of participation interests in
$144.0 million of accounts receivable and, as of December 31,
2005, the Company had not sold any participation interests in such
accounts receivable.

(c) At March 31, 2006, the Company reclassed $149.0 million of its
senior notes to current as they come due in March 2007.



Arch Chemicals, Inc.
Condensed Consolidated Statements of Cash Flows (a)
(In millions)

----------------------------------------------------------------------
Six Months Ended June 30, 2006 2005
----------------------------------------------------------------------

Operating Activities:
Net Income $35.2 $31.0
Adjustments to Reconcile Net Income to Net Cash
and Cash Equivalents (Used in) Provided by
Operating Activities:
Loss (Income) from Discontinued Operations 0.5 (2.9)
Equity in Earnings of Affiliates (0.5) (0.6)
Depreciation and Amortization 22.4 23.6
Deferred Taxes 12.2 6.7
Restructuring Payments (0.2) (1.1)
Changes in Assets and Liabilities, Net of Purchase
and Sale of Businesses:
Accounts Receivable Securitization Program 60.0 73.4
Receivables (97.1) (118.2)
Inventories (32.9) (34.5)
Other Current Assets 1.1 -
Accounts Payable and Accrued Liabilities 13.8 31.7
Noncurrent Liabilities 9.5 (28.9)
Other Operating Activities (0.4) 1.6
----------------------------------------------------------------------
Net Operating Activities from Continuing Operations 23.6 (18.2)
Cash Flows of Discontinued Operations (1.1) 4.1
----------------------------------------------------------------------
Net Operating Activities 22.5 (14.1)
----------------------------------------------------------------------
Investing Activities:
Capital Expenditures (9.3) (6.4)
Business Acquired in Purchase Transaction, Net of Cash
Acquired (2.8) (3.1)
Cash Payments from the Sale of a Business (0.5) (3.9)
Cash Flows of Discontinued Operations - -
Other Investing Activities (1.5) (0.8)
----------------------------------------------------------------------
Net Investing Activities (14.1) (14.2)
----------------------------------------------------------------------
Financing Activities:
Long-Term Debt Borrowings 40.0 111.0
Long-Term Debt Repayments (46.5) (111.1)
Short-Term Borrowings (Repayments), Net (0.9) 1.2
Dividends Paid (9.6) (9.4)
Cash Flows of Discontinued Operations - -
Proceeds from Stock Options Exercised and Other
Financing Activities 11.6 1.0
----------------------------------------------------------------------
Net Financing Activities (5.4) (7.3)
----------------------------------------------------------------------
Effect of Exchange Rate Changes on Cash and Cash
Equivalents 2.9 (2.6)
----------------------------------------------------------------------
Net Increase (Decrease) in Cash and Cash Equivalents 5.9 (38.2)
Cash and Cash Equivalents, Beginning of Year 43.1 74.6
----------------------------------------------------------------------
Cash and Cash Equivalents, End of Period $49.0 $36.4
----------------------------------------------------------------------

(a) Unaudited.


Arch Chemicals, Inc.
Segment Information (a, d)
(In millions)
----------------------------------------------------------------------
Three Months Six Months
Ended June 30, Ended June 30,
2006 2005 2006 2005
----------------------------------------------------------------------

Sales:
Treatment Products:
- HTH Water Products $197.8 $183.2 $297.2 $274.0
- Personal Care and
Industrial Biocides 75.5 70.6 141.9 140.4
- Wood Protection and
Industrial Coatings 102.6 101.3 189.8 188.4
----------------------------------------------------------------------
Total Treatment Products 375.9 355.1 628.9 602.8
Performance Products:
- Performance Urethanes 64.9 50.9 125.3 99.8
- Hydrazine 5.3 5.3 9.7 10.0
----------------------------------------------------------------------
Total Performance Products 70.2 56.2 135.0 109.8
----------------------------------------------------------------------
Total Sales $446.1 $411.3 $763.9 $712.6
----------------------------------------------------------------------
Operating Income (Loss) (b):
Treatment Products:
- HTH Water Products $41.4 $23.8 $46.2 $24.2
- Personal Care and
Industrial Biocides 11.6 11.1 22.9 23.8
- Wood Protection and
Industrial Coatings 1.0 6.9 2.4 8.4
----------------------------------------------------------------------
Total Treatment Products 54.0 41.8 71.5 56.4
Performance Products:
- Performance Urethanes 5.4 3.4 9.4 4.5
- Hydrazine 0.1 0.4 (0.1) (0.3)
----------------------------------------------------------------------
Total Performance Products 5.5 3.8 9.3 4.2
----------------------------------------------------------------------
59.5 45.6 80.8 60.6
General Corporate
Expenses (c) (9.8) (5.6) (16.7) (10.7)
----------------------------------------------------------------------
Total Segment Operating Income
Including Equity in
Earnings of Affiliated
Companies 49.7 40.0 64.1 49.9
Equity in (Earnings)
Losses of Affiliated
Companies (0.3) 0.3 (0.5) (0.6)
----------------------------------------------------------------------
Total Operating Income 49.4 40.3 63.6 49.3
Interest Expense, Net (5.5) (5.8) (10.8) (10.2)
----------------------------------------------------------------------
Income from Continuing Operations
Before Taxes and Equity in
Earnings of Affiliated
Companies $43.9 $34.5 $52.8 $39.1
----------------------------------------------------------------------

(a) Unaudited.

(b) Includes equity in (earnings) losses of affiliated companies.

(c) Includes certain general expenses of the corporate headquarters
that are not allocated to the business segments, including costs
associated with the Company's accounts receivable securitization
program, certain pension expenses and the results of the Company's
Planar Solutions joint venture through the date of sale on
November 30th, 2005.

(d) In 2006, the Company has included pension expense associated with
pension obligations for retirees assumed with the Hickson
acquisition, as well as for employees subsequently transferred
with the related sold businesses in General corporate expenses
that had previously been allocated to the Company's operating
segments. The Company has reclassified prior period amounts to
conform to the current presentation. The amount previously
allocated that is now included in General corporate expenses for
the three months ended March 31, 2006 was $1.6 million. The amount
previously recorded for the three and six months ended June 30,
2005 was $1.0 million and $2.0 million, respectively. See Appendix
for revised segments for 2005 and the first quarter of 2006.


Arch Chemicals, Inc.
Appendix: Revised Segment Information (a, g)
(In millions)

----------------------------------------------------------------------

2006 2005
---------------------------- -----------------------------------------
First First Second Third Fourth Total
Quarter Quarter Quarter Quarter Quarter Year
---------------------------- -----------------------------------------
Sales:
Treatment
Products:
- HTH Water
Products $99.4 $90.8 $183.2 $95.8 $63.3 $433.1
- Personal Care
and Industrial
Biocides 66.4 69.8 70.6 66.9 65.4 272.7
- Wood Protection
and Industrial
Coatings 87.2 87.1 101.3 89.7 80.3 358.4
---------------------------- -----------------------------------------
Total Treatment
Products 253.0 247.7 355.1 252.4 209.0 1,064.2
Performance
Products:
- Performance
Urethanes 60.4 48.9 50.9 59.0 63.2 222.0
- Hydrazine 4.4 4.7 5.3 2.8 6.1 18.9
---------------------------- -----------------------------------------
Total Performance
Products 64.8 53.6 56.2 61.8 69.3 240.9
---------------------------- -----------------------------------------
Total Sales $317.8 $301.3 $411.3 $314.2 $278.3 $1,305.1
---------------------------- -----------------------------------------

Segment Operating
Income (Loss) (b):
Treatment Products:
- HTH Water
Products (c) $4.8 $0.4 $23.8 $(2.0) $(11.0) $11.2
- Personal Care
and Industrial
Biocides 11.3 12.7 11.1 11.7 10.1 45.6
- Wood Protection
and Industrial
Coatings 1.4 1.5 6.9 6.2 2.0 16.6
---------------------------- -----------------------------------------
Total Treatment
Products 17.5 14.6 41.8 15.9 1.1 73.4
Performance
Products:
- Performance
Urethanes (c, d) 4.0 1.1 3.4 5.4 9.9 19.8
- Hydrazine (c) (0.2) (0.7) 0.4 (1.5) 1.0 (0.8)
---------------------------- -----------------------------------------
Total Performance
Products 3.8 0.4 3.8 3.9 10.9 19.0
---------------------------- -----------------------------------------
21.3 15.0 45.6 19.8 12.0 92.4
General Corporate
Expenses (e, f) (6.9) (5.1) (5.6) (4.5) 3.0 (12.2)
---------------------------- -----------------------------------------
Total Segment Operating
Income including
Equity in Earnings
of Affiliated
Companies 14.4 9.9 40.0 15.3 15.0 80.2

Impairment - - - - (0.9) (0.9)
Equity In (Earnings)
Losses of Affiliated
Companies (0.2) (0.9) 0.3 (1.2) (1.1) (2.9)
---------------------------- -----------------------------------------
Total Operating
Income 14.2 9.0 40.3 14.1 13.0 76.4
Interest Expense,
net (5.3) (4.4) (5.8) (4.9) (4.6) (19.7)
---------------------------- -----------------------------------------
Income from Continuing
Operations before
Equity in Earnings of
Affiliated Companies,
Taxes and Cumulative
Effect of Accounting
Change $8.9 $4.6 $34.5 $9.2 $8.4 $56.7
---------------------------- -----------------------------------------

(a) Unaudited.

(b) Includes equity in (earnings) losses of affiliated companies.

(c) Third quarter 2005 includes an additional charge for a portion of
penalties and interest related to the Brazilian state import tax
claim of $0.2 million and $0.7 million for the water products and
performance urethanes businesses, respectively. Fourth quarter
2005 includes an additional charge for a portion of penalties and
interest related to the Brazilian state import claim of $0.2
million, $0.7 million and $0.1 million for the water products,
performance urethanes and hydrazine businesses, respectively.

(d) Fourth quarter and year-to-date 2005 includes a pre-tax gain on
excess land of $5.8 million located in Brandenburg, Kentucky.

(e) Fourth quarter and year-to-date 2005 includes a $10.2 million pre-
tax gain on the sale of the Planar Solutions joint venture.

(f) Includes certain general expenses of the corporate headquarters
that are not allocated to the business segments, including costs
associated with the Company's accounts receivable securitization
program, certain pension expenses and the results of the Company's
Planar Solutions joint venture through the date of sale on
November 30th, 2005.

(g) In 2006, the Company has included pension expense associated with
pension obligations for retirees assumed with the Hickson
acquisition, as well as for employees subsequently transferred
with the related sold businesses in General corporate expenses
that had previously been allocated to the Company's operating
segments. The Company has reclassified prior period amounts to
conform to the current presentation.