CP Kelco Announces Price Increases

Due to rising energy and processing materials costs, CP Kelco will implement a series of price increases effective December 15, 2004. Prices for currently contracted business will be adjusted as individual contracts come due.

The price increases are: 6% for pectin, 5% for xanthan and xanthan blends, and 5% for welan gum materials. In addition, price increases ranging from 6% to 10% will be implemented for selected carrageenan products.

"We are facing double digit increases in what we spend on energy and processing materials," says Bruce Dructor, CP Kelco's vice president, operations and business management. "However, CP Kelco's efforts to improve production efficiency and boost capacity have partially offset these additional costs and allowed us to keep the price increases to a minimum."

According to Dructor, CP Kelco's operations' investments have not only helped secure a competitive manufacturing position, they ultimately ensure continued delivery of innovative new product solutions and outstanding quality and service in all product lines. "As a leading producer of pectin, xanthan and carrageenan-and the only producer of welan gum-our goal is to deliver steady supply and consistent product performance for all CP Kelco customers around the world."

ABOUT CP KELCO:
Recently acquired by the J.M. Huber Corporation, CP Kelco is a leading global producer of specialty hydrocolloids with more than 2,000 customers in over 100 countries, and facilities in North America, Europe, Asia and Latin America. Hydrocolloids are thickeners, gelling agents and stabilizers that dissolve or swell in water to control textural properties and provide critical functionalities in a broad range of applications, including food, pharmaceutical, oral care, personal care, household and consumer, specialty industrial and oil field drilling. See www.cpkelco.com.

ABOUT J.M. HUBER CORPORATION
With reported sales exceeding $1 billion and operations in 18 countries, J.M. Huber Corporation is one of the largest family-owned companies in the U.S. It is a diversified multinational supplier of engineered materials, natural resources and technology-based services to markets ranging from paper and energy to plastics and construction. The company offers total solutions in inorganic chemistry, carboxy methyl cellulose (CMC), engineered wood composites and other specialties. See www.huber.com.

Contacts:
Martin Sapone
Business Unit Director - Food Gums
312 554 7800

Mike Size
Business Unit Director - Biogums
312 554-7800