The company has reported fourth quarter 2008 sales of $2,030 million, a 13% decrease over the same period in 2007, driven by accelerating market declines that impacted all businesses and regions except Salt. The company reported fourth quarter 2008 earnings from continuing operations of $32 million, or $0.17 per share, compared to $180 million, or $0.91 per share, for the fourth quarter of 2007. The quarter’s results include special items totaling $0.52 per share: $0.08 per share in costs associated with the proposed merger with The Dow Chemical Company announced in July; $0.03 per share in costs resulting from the impact of hurricanes on the company’s operations in the quarter; and $0.41 per share in asset impairments and costs resulting from restructuring actions. Adjusted earnings per share, which excludes the special items noted above, were $0.69 compared to $0.90 in the prior-year period.

For full-year 2008, the company reported earnings from continuing operations of $480 million, or $2.44 per share. Adjusted earnings per share were $3.31 for full-year 2008, compared to $3.37 per share for full-year 2007.

“We took proactive steps throughout 2008 to remain competitive despite the challenges of a slowing economy, and our performance reflects these efforts,” said Raj L. Gupta, chairman and chief executive officer of Rohm and Haas Company. “As market conditions continue to weaken, we are implementing additional actions to navigate these difficult times, while remaining focused on positioning our businesses for success when markets recover.”

Gupta added, “Our strong and balanced business platform generated cash flow in excess of $1 billion in 2008, and our solid balance sheet continues to provide Rohm and Haas with strength and stability, even during these challenging times.”

Fourth Quarter 2008 Financial Summary:

Business and Regional Performance:

Electronic Materials Group:

The Electronic Materials Group comprises two reportable segments which provide materials for use in applications such as telecommunications, consumer electronics and household appliances. Sales for the Electronic Materials Group were $371 million in the fourth quarter of 2008, down 23% over the same period in 2007, primarily reflecting a marked deceleration in demand for semiconductor and electronic devices.

Adjusted pre-tax earnings for this Group were $28 million, down 72% from 2007, primarily reflecting a significant downturn in demand for semiconductors and electronic devices.

Electronic Technologies:

The Electronic Technologies segment is comprised of the company’s Semiconductor Technologies, Circuit Board Technologies and Packaging and Finishing Technologies business units. Sales for the segment of $319 million were down 30%, reflecting a pronounced decline in demand across all product lines and regions, driven by a decrease in production of semiconductors and electronic devices. Sales excluding precious metal pass-through were down 28%.

Semiconductor Technologies sales were down 30% versus the same period in 2007, reflecting a sharp decline in demand across all customer segments.

Circuit Board Technologies sales were down 21% as compared to the same period last year, reflecting substantially lower production levels among customers.

Packaging and Finishing Technologies sales decreased 38% versus last year, with weakening demand across all segments and lower precious metal pass-through sales. Excluding precious metal pass-through, sales were down 27%.

Adjusted pre-tax earnings for this segment of $35 million were down 68% from the fourth quarter of 2007, reflecting substantially lower demand.

Display Technologies:

In June 2007, the company acquired the assets of Eastman Kodak Company’s Light Management Films technology business, which produces advanced films that improve the brightness and efficiency of liquid crystal displays (LCD). On November 30, 2007, the company completed the formation of SKC Haas Display Films, a majority-owned joint venture with SKC, Inc., of South Korea for the development, manufacture and marketing of advanced optical and functional films used in the displays industry. On April 4, 2008, the company acquired Gracel Display, Inc., a leading developer and manufacturer of Organic Light Emitting Diode (OLED) materials. These businesses, along with process-related materials also used in the displays industry previously included as part of the Semiconductor Technologies unit, form the Display Technologies reportable segment.

Display Technologies sales were $52 million in the quarter, compared to $30 million in the prior-year period. Acquisitions more than offset sharply lower demand, which resulted from lower production by LCD panel customers. The segment reported an adjusted pre-tax loss of $7 million in the quarter, flat to the prior-year period, reflecting the impact of acquisitions offset by lower demand and pricing.

Specialty Materials Group:

The Specialty Materials Group comprises three business units and represents the majority of the company’s chemical business, serving a broad range of end-use markets. Net sales for this Group of $974 million were down 17% from the prior-year period, primarily due to decreased demand in all regions as well as unfavorable currencies, partially offset by prior pricing actions and the impact of acquisitions.

Adjusted pre-tax earnings for this Group were $31 million, down 68% from 2007. The impact of softer demand, higher raw material and energy costs, and the negative operating impact of volume shortfalls were partially offset by prior pricing actions.

The results for Specialty Materials are reported under the three separate reportable segments as follows:

Paint and Coatings Materials:

Sales for the Paint and Coatings Materials business were $413 million, a decrease of 12% over the same period in 2007, largely driven by a decrease in demand across all regions and unfavorable currencies, partially offset by prior pricing actions and the impact of an acquisition.

Adjusted pre-tax earnings of $19 million in the fourth quarter of 2008 were down 60% compared to the same period last year. The decrease in demand, higher raw material and energy costs and the unfavorable impact of currencies were partially offset by prior pricing actions.

Packaging and Building Materials:

Packaging and Building Materials sales were $344 million, down 24% over the same period in 2007, reflecting a decrease in demand in all regions and unfavorable currencies, partially offset by prior pricing actions.

The segment reported an adjusted pre-tax loss of $6 million in the quarter, compared to adjusted pre-tax earnings of $31 million in the prior-year period. The decrease in demand, the negative operating impact of volume shortfalls, unfavorable currencies and higher raw material costs were partially offset by prior pricing actions.

Primary Materials:

Primary Materials sales were $427 million, a decrease of 14% over the same period in 2007. Primary Materials results include sales to our internal downstream monomer-consuming businesses, along with sales to third-party customers of Monomers, Dispersants and Industrial and Household Polymers. Third-party sales were down 14% compared to the prior-year period, reflecting decreased demand and unfavorable currencies, partially offset by prior pricing actions. Captive volumes were down 21%.

Adjusted pre-tax earnings of $18 million in the fourth quarter of 2008 were down 5% compared to the fourth quarter of 2007. Lower demand was partially offset by the favorable selling price/raw material relationship.