Imerys Announces Sharp Increase in Consolidated Results for the First Nine Months of 2010

By Imerys, PRNE
Tuesday, November 2, 2010

PARIS, November 3, 2010 -

    - Gradual improvement in business, supported by substantial
      inventory rebuilding on several markets
    - Consolidated sales up + 21%, i.e. + 16% at comparable Group
      structure and exchange rates
    - Sharp rise in net income from current operations, supported by
      increase in operating margin to 12.8%
    - Upward revision of operating margin guidance: at least 12.5% for
      2010

On Wednesday, November 3, 2010, the Board of Directors of Imerys, meeting
under the chairmanship of Aimery Langlois-Meurinne, examined the non-audited
consolidated results to September 30, 2010, as presented by Chief Executive
Officer Gerard Buffiere.

    Consolidated results                 09/30/2010 09/30/2009   % current
    non-audited (EUR millions)                                      change
    Sales                                   2,515.2    2,077.7     + 21.1%
    Current operating income(1)               322.4      179.8     + 79.4%
                        Operating margin       12.8%       8.7% + 4.1 points
    Net income from current operations,
    Group's share(2)                          188.9       87.3    + 116.4%
    Net income, Group's share                 186.3       33.6        n.s.
    Net income from current operations,
    Group's share - per share (2)(3)        EUR2.50    EUR1.23    + 102.9%

(1) Operating income before other operating revenue and expenses,
but including the share in income of associates.

(2) Group's share of net income, before other operating revenue
and expenses, net.

(3) The weighted average number of outstanding shares (adjusted
following the rights issue of June 2, 2009) was 75,436,646 for the first 9
months of 2010, compared with 70,720,880 for the first 9 months of 2009.

Gerard Buffiere commented: "During the first nine months of
2010, Imerys' sales benefited from sharp growth in volumes and a positive
exchange rate effect. The gradual upturn in business on our different markets
was intensified by inventory rebuilding in the value chain in the second and
third quarters, particularly in industrial equipment-related sectors. In this
context, Imerys revises upwards its 2010 guidance with an operating margin of
at least 12.5%."

ECONOMIC ENVIRONMENT

Since the beginning of 2010, Imerys' macro-economic
environment has improved. The inventory rebuilding effect picked up in the
second quarter and continued into the summer. The growth in emerging
countries, where the Group's sales rose + 37%, contributes to performance.
Compared with the first nine months of 2009, the euro weakened against most
other Group's currencies.

After a good first half-year, business remained high in
industrial equipment-related sectors in the 3rd quarter. The resilience of
emerging economies drove growth in developed countries through exports, with
the additional help of temporary stimulus measures. Over the first 9 months
of 2010, global steel production returned to 2008 volumes; however,
production in North America and Europe is still approximately - 19% below
pre-crisis levels, whereas growth continued in China and India.

Over the first 9 months of 2010, global production of printing
and writing paper grew + 8% compared with the same period of the previous
year, with a strong upturn in Europe. The euro's depreciation allowed
European papermakers to become more competitive and develop their export
sales. American producers benefited from a buoyant local market. On emerging
markets, the trend remains positive.

In the sectors directly related to consumer goods (filtration,
personal care), business is stable.

Construction sector continued to recover slowly in Europe,
particularly in France where some advanced indicators (house sales, building
permits) have been rising for a few months. In North America, new housing
starts remain very low and visibility is not improving.

HIGH OPERATING PERFORMANCE IN THE 3RD QUARTER

In that more favorable macro-economic environment, 3rd quarter
sales were up + 26.8% with a very positive exchange rate effect (+ 8.2%).
Benefiting from the ongoing high contribution of sales volumes and good
industrial flexibility, the operating margin for the quarter was 12.9%.

MAJOR EVENTS: Acquisition of kaolin for paper & packaging assets
in Brazil

On July 26, 2010, Imerys acquired an 86.2% interest in the
Brazilian company Para Pigmentos S.A. (PPSA), as well as mining rights
located in Para State, for a total price of around US$ 70 million.

2010 OUTLOOK

Market signals are very contrasted:

    - End of inventory rebuilding in industrial value chains
      observed until the 3rd quarter;

    - Ongoing slow improvement of construction in France; gradual
      effect of increasing building permits on sales of building materials;

    - In the United States, very low level of activity in
      construction, given the various market indicators (inventories of new and
      old housing, foreclosures, price trends);

    - Stabilization of global paper production;

    - Growth in emerging countries.

In a more favorable context over the first nine months of the
year, the Group benefited from a substantial increase in business, mainly due
to inventory rebuilding and a more competitive euro. Consequently, Imerys has
revised its 2010 guidance upward with an operating margin of at least 12.5%
for the year.

GOVERNANCE

Gilles Michel was appointed as Director of the Company by the Board at
its meeting of November 3, 2010. He succeeds to Gilbert Milan who resigned
from his directorship for personal reasons. Mr. Milan was warmly thanked for
his active contribution to the work of the Board and its Strategic Committee.

Gilles Michel was also appointed Deputy CEO as from that date.
Gilles Michel's appointment as Chairman & CEO will be submitted to the
approval of the relevant corporate bodies of the Company following its 2011
Shareholders' General Meeting.

DETAILED COMMENTARY ON THE GROUP'S RESULTS

SALES

                   Sales 2010     Sales 2009   Change in sales
                                                 (% previous
                 (EUR millions) (EUR millions)      year)
    1st
    quarter([2])      751.6          694.3          + 8.2%
    2nd
    quarter(2)        871.4          679.7         + 28.2%
    3rd
    quarter(2)        892.2          703.7         + 26.8%
    9 months(2)     2,515.2        2,077.7         + 21.1%

                   Comparable     Of which   Of which
                   change([1])     Volume   Price/Mix
                   (% previous
                      year)
    1st
    quarter([2])      + 9.5%       + 7.6%     + 1.9%
    2nd
    quarter(2)       + 22.7%      + 20.8%     + 1.9%
    3rd
    quarter(2)       + 16.7%      + 14.5%     + 2.2%
    9 months(2)      + 16.3%      + 14.3%     + 2.0%

    - High sales volumes

    - Substantial inventory rebuilding in industrial equipment-related
      downstream chain

    - Continued favorable trend in product price and mix

    Sales to September 30, 2010 totaled EUR2,515.2 million (+ 21.1% vs. the
    first 9 months of 2009). This rise takes into account:

    - A Group structure effect([3]) of + EUR6.8 million;

    - Foreign exchange impact of + EUR92.9 million, which intensified over
      the 3rd quarter, reflecting the euro's depreciation against other
      currencies (in the first nine months of 2010 compared with the same
      period in the previous year).

At comparable Group structure and exchange rates, the increase in sales
(+ 16.3% vs. the first 9 months of 2009) reflects the overall upturn in
volumes (+ 14.3%) in the four business groups. Recovery was stronger in the
activities that were most affected by the crisis and inventory reduction in
2009. The price/mix component improved by + 2.0%.

Sequentially, and in absolute terms, 3rd quarter 2010 sales at comparable
Group structure and exchange rates were very slightly lower than in the 2nd
quarter of 2010, marking the end of inventory rebuilding. It should be
remembered that business in the first nine months of 2009 forms a favorable
basis of comparison for the first nine months of 2010.

Sales by geographic zone

    (EUR millions)         Sales     % change vs.         % of
                         09/30/10      09/30/09       consolidated
                                                    sales 09/30/10
       Western Europe     1 207.1         + 11.0%              48%
         of which France    426.0          - 1.2%              17%
    United States /
    Canada                  522.6         + 27.3%              21%
    Japan / Australia       124.9         + 28.4%               5%
    Emerging countries      660.6         + 36.8%              26%
    Total                 2,515.2         + 21.1%             100%

In addition to the euro's depreciation over the period, the
almost + 37% growth in sales in emerging countries, which represents more
than a quarter of the Group's turnover, reflects sharp growth in sales in
Brazil, China, Eastern Europe and India, as well as the developments and
acquisition completed in those countries. The significant upturn observed in
North America, Japan and Australia factors in the average appreciation of the
relevant currencies against the euro over the period.

Change in sales by business group

    (non-audited, EUR millions)  Q3 2010 Q3 2009    Current
                                                     change
                                                     %
    Sales, of which:               892.2   703.7    + 26.8%
    Minerals for Ceramics,
    Refractories, Abrasives &
    Foundry                        288.8   195.8    + 47.5%
    Performance & Filtration
    Minerals                       156.0   132.4    + 17.8%
    Pigments for Paper             209.4   162.3    + 29.1%
    Materials & Monolithics        250.0   220.8    + 13.2%
    Holding company &              .
    eliminations                   (12.0)   (7.6)       n.s

    (table continues)

    (non-audited, EUR millions)    Group    Foreign  Comparable
                                 structure  exchange change([4])
                                  effect %  effect %      %
    Sales, of which:                 + 1.8%   + 8.2%     + 16.7%
    Minerals for Ceramics,
    Refractories, Abrasives &
    Foundry                          - 0.1%   + 8.9%     + 38.7%
    Performance & Filtration
    Minerals                         - 0.1%  + 11.5%      + 6.4%
    Pigments for Paper               + 8.4%  + 10.9%      + 9.8%
    Materials & Monolithics          - 0.3%   + 3.8%      + 9.7%
    Holding company &
    eliminations                       n.s.     n.s.        n.s.

    (non-audited, EUR millions) 09/30/2010 09/30/2009  Current
                                                        change
                                                          %
    Sales, of which:               2,515.2    2,077.7    + 21.1%
    Minerals for Ceramics,
    Refractories, Abrasives &
    Foundry                          825.4      579.0    + 42.6%
    Performance & Filtration
    Minerals                         456.4      378.7    + 20.5%
    Pigments for Paper               565.6      471.8    + 19.9%
    Materials & Monolithics          701.4      664.2     + 5.6%
    Holding company &
    eliminations                     (33.6)     (15.9)      n.s.

    (table continues)

    (non-audited, EUR millions)   Group    Foreign  Comparable
                                structure  exchange change(4)
                                 effect %  effect %     %
    Sales, of which:                + 0.3%   + 4.5%    + 16.3%
    Minerals for Ceramics,
    Refractories, Abrasives &
    Foundry                         - 0.1%   + 4.2%    + 38.5%
    Performance & Filtration
    Minerals                            -    + 6.3%    + 14.2%
    Pigments for Paper              + 2.9%   + 5.8%    + 11.2%
    Materials & Monolithics         - 0.9%   + 2.9%     + 3.6%
    Holding company &
    eliminations                      n.s.     n.s.       n.s.

Minerals for Ceramics, Refractories, Abrasives & Foundry

(32% of consolidated sales)

Heavily affected by the global economic crisis since the end of 2008, the
Minerals for Refractories, Fused Minerals (particularly Abrasives) and
Graphite markets recorded a very sharp rebound from the beginning of 2010,
driven by the upturn in end demand in the steel, industrial equipment,
automotive and mobile energy sectors. Inventory rebuilding in the value
chain, which picked up speed in the second quarter, continued until the end
of the summer, when temporary steel production capacity closures occurred in
Europe.

The Minerals for Ceramics markets (for sanitaryware, floor tiles, etc.)
are improving slowly in Europe and benefiting from a strong increase in
production in emerging countries.

Analysis of the + 42.6% rise in sales to EUR825.4 million as on September
30, 2010
, shows:

A limited Group structure effect (- EUR0.8 million);

Positive foreign exchange impact of + EUR24.4 million.

Over the first nine months of 2010, the + 38.5% growth at comparable
structure and exchange rates is to be compared with the drop observed in 2009
(- 37% vs. the first nine months of 2008).

Demand was firm in Fused Minerals, Minerals for Refractories, Graphite &
Carbon, and increase was more moderated in Minerals for Ceramics. All
divisions benefit from their recent development in emerging countries (Middle
East
, South America, China, South-East Asia).

Performance & Filtration Minerals

(18% of consolidated sales)

Since the beginning of the year, business has improved on most
of the business group's end markets. Trends are positive in consumer goods
(beverages, edible oils, personal care, etc.) and specialty products for
industry (plastics, rubber, catalytic filtration, etc.), while construction
is improving slightly in Europe. In the United States, however, construction
business remained slack throughout the period, with a further softening in
the third quarter.

The + 20.5% rise in sales to EUR456.4 million for the first nine months
of 2010 factors in:

    - A limited Group structure effect (- EUR0.2 million);

    - A + EUR24.0 million foreign exchange impact.

After a decrease in 2009, sales growth at comparable Group
structure and exchange rates (+ 14.2%) reflects underlying-market trends as
well as the effect of inventory building by the business group's customers
and distributors. However, this effect was lower in the 3rd quarter.

Pigments for Paper

(22% of consolidated sales)

After the sharp downturn recorded in the first nine months of 2009,
global printing and writing production increased gradually from the beginning
of 2010, rising + 8%. Growth is strong in Europe and in North America. The
depreciation of the euro against the US dollar also helped European
manufacturers to be more competitive.

The almost + 20% growth in sales to EUR565.6 million as on September 30,
2010
, takes into account:

    - A Group structure effect([5]) of + EUR13.7 million due to the
      acquisition of PPSA (see below);

    - A positive foreign exchange impact of + EUR27.2 million.

At comparable Group structure and exchange rates, the increase in sales
(+ 11.2%) relates to the geographic mix of the Group, which is especially
active in zones where the upturn was more significant and to the development
of new specialties in the packaging paper sector.

The precipitated calcium carbonate (PCC) plant in Yueyang (Hunan
province, China), which came on stream in the second quarter through a joint
venture with the Tiger Forest & Paper group, is now fully operational.

Moreover, in the 3rd quarter, the business group acquired a
86.2% interest in the Brazilian company Para Pigmentos S.A. (PPSA). Thanks to
this operation, Imerys increases its kaolin reserves for paper and packaging
and enhances its industrial and logistical assets (pipeline and port
terminal).

Materials & Monolithics

(28% of consolidated sales)

In the new construction sector in France, the increase in
building permit issues seen for several quarters (+ 16.9% on a 12-month
rolling basis(6)) has not yet been passed through to single-family housing
starts (- 2.1% on a 12-month rolling basis([6])).

Affected by adverse weather conditions early in the year, renovation
remained slightly lower than the first nine months of 2009.

Monolithic Refractories markets benefited from the sharp upturn in
steelmaking, which however slowed down towards the end of the period in
Europe. The cement, incineration and petrochemicals segments, which held out
better in 2009, grew slightly. Orders stemming from new equipment projects
remain limited.

The business group's sales rose + 5.6% over the first nine months of 2010
compared with the same period in 2009 to total EUR701.4 million, taking into
account:

    - A Group structure impact(7) of - EUR6.0 million;

    - Positive exchange rate effect of + EUR19.0 million.

At comparable Group structure and exchange rates, sales grew + 3.6%. The
recovery continues in Monolithic Refractories and Building Materials are
gradually catching up the delay due to bad weather in the first two months of
the year.

CURRENT OPERATING INCOME(8)

    (EUR millions)     2010      2009    % Change   % Comparable
                                                      change(9)
    1st quarter        84.1      44.4     + 89.4%     + 101.4%
    Operating margin   11.2%      6.4%
    2nd quarter       123.2      65.6     + 87.8%      + 90.0%
    Operating margin   14.1%      9.6%
    1st half          207.3     110.0     + 88.4%      + 94.6%
    Operating margin   12.8%      8.0%
    3rd quarter       115.1      69.8     + 65.0%      + 63.7%
    Operating margin   12.9%      9.9%
    September 30      322.4     179.8     + 79.4%      + 82.6%
    Operating margin   12.8%      8.7%

    - Substantial contribution of volumes

    - Fixed costs and overheads kept under control

    The + 79.4% increase in current operating income to EUR322.4 million for
the first nine months of 2010 reflects:

    - A Group structure effect of - EUR1.8 million;

    - A foreign exchange impact of - EUR4.2 million (particularly related to
the appreciation of the Brazilian real against the euro and the US dollar).

At comparable Group structure and exchange rates, current operating
income rose + EUR148.6 million compared with the first nine months of 2009,
thanks to the substantial contribution of sales volumes (+ EUR134.9
millions
). The product price/mix component was favorable (+ EUR19.2 million)
and the Group recorded an overall decrease in variable costs (- EUR20.9
million
) with a lower energy bill. Fixed production costs and overheads
remain under control (+ EUR64.4 million) in correlation with the increase in
production volumes and related costs (personnel and maintenance).

At 12.8%, the Group's operating margin was 4.1 points higher than for the
first nine months of 2009.

NET INCOME FROM CURRENT OPERATIONS (10)

Up + 116.4% to EUR188.9 million, net income from current operations
reflects:

    - The sharp rise in current operating income;

    - The improvement in financial expense, relating to the decrease in
      average debt compared with the same period in 2009. Financial expense
      totaled - EUR51.9 million (vs. - EUR59.2 million as on September 30,
      2009);

    - A tax charge of - EUR77.9 million (- EUR33.8 million for the first 9
      months of 2009), which represents an effective tax rate of 28.8%.

NET INCOME

The + EUR152.7 million increase in the Group's share of net income to
EUR186.3 million takes into account other revenue and expenses, net of tax (-
EUR2.6 million) notably including:

Non-recurring financial income resulting from the recording in the 1st
half of 2010 of a non-recurring foreign exchange gain of EUR10.2 million,
following the financial restructuring of the Group's US subsidiaries;

Depreciation expense for sites restoration: the review of the
environmental situations of the Group' industrial sites led to an additional
long-term provision of - EUR9.3 million.

FINANCIAL SITUATION

The Group's financial situation remains sound as on September
30, 2010
, with no significant change in debt during the 3rd quarter, despite
the acquisition of PPSA in Brazil.

FINANCIAL COMMUNICATION DIARY

    Tuesday, February 15   Financial 2010 results

    Thursday, April 28     Shareholders' General Meeting - 1st quarter
                           2011 results

    Friday, July 29        1st half 2011 results

    Thursday, November 3   3rd quarter 2011 results

These dates are given for guidance only and may be updated on
the Group's website at the address www.imerys.com, in the Investors &
Analysts / Financial Agenda section.

AVAILABILITY OF INFORMATION

The present press release is available on the Group's website
www.imerys.com, and can be consulted from the home page in the "Press
Releases" section.

Today at 6:15 pm (CET), Imerys is holding a teleconference at
which the results for the first 9 months of 2010 will be commented on. This
conference will be webcast live (with English translation) on the Group's
website www.imerys.com.

The world leader in adding value to minerals, Imerys is active in 47
countries through more than 240 industrial and commercial sites. The Group
achieved EUR2.8 billion in sales in 2009. Imerys mines and processes minerals
from reserves with rare qualities in order to develop solutions that improve
its customers' product performance and manufacturing efficiency. The Group's
products have a great many applications in everyday life, including
construction, personal care, paper, paint, plastic, ceramics,
telecommunications and beverage filtration.

More comprehensive information about Imerys may be obtained from its
Internet website (www.imerys.com) under Regulated Information, particularly
in its Document de Reference filed with Autorite des marches financiers on
April 1, 2010 under number D.10-0205 (also available from the Autorite des
marches financiers website, www.amf-france.org). Imerys draws the attention
of investors to chapter 4, "Risk Factors", of its Document de Reference.

Warning on projections and forward-looking statements: This document
contains projections and other forward-looking statements. Investors are
cautioned that such projections and forward-looking statements are subject to
various risks and uncertainties (many of which are difficult to predict and
generally beyond the control of Imerys) that could cause actual results and
developments to differ materially from those expressed or implied.

([1]) At comparable Group structure and exchange rates.

([2]) Non-audited quarterly data.

([3]) Mainly acquisition of PPSA (Brazil, consolidated from August 1,
2010
) and divestment of Planchers Fabre (France, May 2009).

([4]) At comparable Group structure and exchange rates.

([5]) Acquisition of PPSA (Brazil, consolidated from August 1, 2010).

([6]) Source: New single-family housing starts - French Ministry of
Ecology, Energy, Sustainable Development and the Sea.

([7]) Divestment of Planchers Fabre (France, May 2009).

([8]) Operating income before other operating revenue and expenses.

([9]) At comparable Group structure and exchange rates

([10]) Net income, Group’s share, before other operating revenue and
expenses, net.

             Non-audited consolidated results to September 30, 2010

                                    Appendix

    1. Consolidated sales breakdown

    Quarterly change at comparable      Q1 10   Q2 10   Q3 10
    Group structure and exchange
    rates
    2010 vs. 2009                       + 9.5% + 22.7% + 16.7%

    Reminder 2009 vs. 2008              Q1 09   Q2 09   Q3 09  Q4 09
                                      - 23.8% - 26.0% - 20.9% - 7.6%

    Quarterly change                     Q1 10    Q2 10    Q3 10 09/30/10
    Imerys Group - Current change       + 8.2%  + 28.2%  + 26.8%  + 21.1%
    Imerys Group - Comparable change    + 9.5%  + 22.7%  + 16.7%  + 16.3%

    of which:
    Minerals for Ceramics,
    Refractories, Abrasives
    & Foundry                          + 28.6%  + 48.2%  + 38.7%  + 38.5%
    Performance & Filtration Minerals  + 19.8%  + 17.2%   + 6.4%  + 14.2%
    Pigments for Paper                  + 7.1%  + 17.2%   + 9.8%  + 11.2%
    Materials & Monolithics             - 8.4%  + 10.2%   + 9.7%   + 3.6%

    Sales by business group                       09/30/10 09/30/09
    Minerals for Ceramics, Refractories,
    Abrasives & Foundry                                32%      27%
    Performance & Filtration Minerals                  18%      18%
    Pigments for Paper                                 22%      23%
    Materials & Monolithics                            28%      32%
    Total                                             100%     100%

    Sales by geographic destination         % of          % of
                                        consolidated  consolidated
                                           sales         sales

                                          09/30/10      30/09/09
                     Western Europe            48%          52%
                    - of which France          17%          21%
    United States / Canada                     21%          20%
    Japan / Australia                           5%           5%
    Emerging countries                         26%          23%
    Total                                     100%         100%

    2. Key figures

    (EUR millions)           Q3 2010 Q3 2009 Change
    Sales                      892.2   703.7 + 26.8%
    Current operating
    income(1)                  115.1    69.8 + 65.0%
    Current financial
    income(2)                  (19.7)  (14.3)
    Current taxes              (27.1)  (15.1)
    Minority interests          (1.5)    0.2
    Net income from current
    operations(3)               66.8    40.5 + 65.2%
    Other operating revenue
    and expenses, net          + 0.3   (18.6)
    Net income(3)               67.1    21.9    n.s.
    Net income per share(3)  EUR0.89 EUR0.54 + 63.0%
    (in euros)

    (table continues)

    (EUR millions)           09/30/2010 09/30/2009  Change
    Sales                       2,515.2    2,077.7  + 21.1%
    Current operating
    income(1)                     322.4      179.8  + 79.4%
    Current financial
    income(2)                     (51.9)     (59.2)
    Current taxes                 (77.9)     (33.8)
    Minority interests             (3.7)       0.4
    Net income from current       188.9       87.3 + 116.4%
    operations(3)
    Other operating revenue        (2.6)     (53.7)
    and expenses, net
    Net income(3)                 186.3       33.6     n.s.
    Net income per share(3)     EUR2.50      e1.23 + 102.9%
    (in euros)

(1) Operating income before other operating revenue and
expenses.

(2) A foreign exchange gain of + EUR10.2 million realized in
the 1st half of 2010 as a consequence of a restructuring of financings of
businesses in US Dollar presents a non-recurring and significant character.
This foreign exchange gain is classified in "Other net operating revenue
and expenses, Group share" (that measures the recurring performance of the
Group) so as to stress its non-recurring and significant character. (See
First-Half Financial Report 2010, available on www.imerys.com - Note 12 -
Chapter 3 - Condensed Financial Statements ).

(3) Group's share.

    Analyst/Investor Relations:
    Pascale Arnaud - +33 (0)1 49 55 63 23
    shareholders@imerys.com

    Press contacts:
    Pascale Arnaud - +33 (0)1 49 55 63 91 /66 55
    Matthieu Roquet-Montegon - +33 (0)6 16 92 80 65

Analyst/Investor Relations: Pascale Arnaud - +33 (0)1 49 55 63 23, shareholders at imerys.com;
Press contacts: Pascale Arnaud - +33 (0)1 49 55 63 91 /66 55, Matthieu Roquet-Montegon - +33 (0)6 16 92 80 65

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