OMG-acquisition

OM Group Completes Acquisition of Electronics Businesses From Rockwood Holdings

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CLEVELAND, Jan 02, 2008

OM Group, Inc. (NYSE: OMG) today announced that it has completed its previously announced acquisition of the electronics businesses from Rockwood Holdings, Inc. for approximately $315 million in cash, plus customary post closing adjustments. Included in the transaction is Rockwood's French electronic chemicals business which was originally subject to a put option that has since been exercised.

"This acquisition is another key step as we implement our long-range growth strategy," said Joseph M. Scaminace, chairman and chief executive officer. "The addition of Rockwood's electronics businesses expands our electronic chemicals growth platform and broadens our reach into high-growth markets around the world."

With 2006 revenues of approximately $187 million, Rockwood's electronics businesses supply customers with chemicals used in the manufacturing of semiconductors and printed circuit boards, as well as photo-imaging masks primarily for semiconductor and photovoltaic manufacturers.

OM Group's long-range growth strategy includes continued product innovation, as well as tactical and strategic acquisitions. The strategy is part of a transformational process designed to deliver sustainable and profitable volume growth, drive consistent financial performance and build long-term shareholder value.

ABOUT OM GROUP, INC.

OM Group, Inc. is a diversified global developer, producer and marketer of value-added specialty chemicals and advanced materials that are essential to complex chemical and industrial processes. Key technology-based end-use applications include affordable energy, portable power, clean air, clean water and proprietary products and services for the microelectronics industry. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. For more information, visit www.omgi.com.

For more information, contact: Greg Griffith vice president, strategic planning, development and investor relations, at +1-216-263-7455.

FORWARD-LOOKING STATEMENTS

The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: the direction and pace of our strategic transformation, including our use of proceeds from the sale of our Nickel business on March 1, 2007 and identification of potential acquisitions; the successful integration of certain Electronics businesses of Rockwood Holdings, Inc.; the operation of our critical business facilities without interruption; the speed and sustainability of price changes in cobalt; the potential for lower of cost or market write-downs of the carrying value of inventory necessitated by decreases in the market price of cobalt or the selling prices of the company's finished products; the availability of competitively priced supplies of raw materials, particularly cobalt; the risk that new or modified internal controls, implemented in response to the company's examination of its internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, are not effective and need to be improved; the demand for metal-based specialty chemicals and products in the company's markets; the impact of environmental regulations on our operating facilities and the impact of new or changes to current environmental, health and safety laws on our products and their use by our customers; the effect of fluctuations in currency exchange rates on the company's international operations; the effect of non-currency risks of investing and conducting operations in foreign countries, including political, social, economic and regulatory factors; the effect of changes in domestic or international tax laws; and the general level of global economic activity and demand for the company's products.
SOURCE: OM Group, Inc.