Michael F. Barry, Chief Executive Officer and President, commented, "Our first quarter results represent significant progress from the fourth quarter as we have seen continued improvement as the quarter progressed. Our improvement in results is being driven by aggressive cost-reduction efforts, margin improvement and moderate product volume increases. While we continue to expect 2009 volumes to be significantly below 2008, we anticipate first quarter 2009 volumes to be the low point of the year."

Mr. Barry continued, "We remain focused on managing our costs and working capital. We generated significant cash flow during the quarter, with our net debt at 2005 levels. As I have mentioned previously, while 2009 will be a challenging year for Quaker and our customers, we remain confident that our business model, strong associate base, key growth initiatives and solid balance sheet will get us through this difficult period in a profitable manner and position us well for the future."

First Quarter 2009 Summary

Net sales for the first quarter were $98.5 million, down 33% from $147.7 million for the first quarter of 2008. The decrease in net sales was primarily due to volume declines in all of the Company's regions and market segments, as the global economic downturn continues to impact the Company. Volumes were down approximately 32%, which were partially offset by a favorable 4% increase in selling price and mix. Foreign exchange rate translation also decreased revenues by approximately 5%.

Gross margins were down approximately $14.9 million, or 34%, compared to the first quarter of 2008, reflective of the above noted volume declines. The gross margin percentage of 29.1% was consistent with the first quarter of 2008, but represents a considerable improvement over the 24.2% reported for the fourth quarter of 2008. The margin percentage expansion from the fourth quarter was the result of the cost reduction actions the Company has taken and a more favorable raw material cost environment as well as product and regional sales mix.

Selling, general and administrative expenses ("SG&A") decreased $7.8 million, or 23%, compared to the first quarter of 2008. Savings from the fourth quarter 2008 and first quarter 2009 restructuring programs, reduced incentive compensation and other cost savings measures accounted for approximately 70% of the decline. Changes in foreign exchange rates accounted for the remainder of the decrease.

As previously announced, the Company implemented an additional restructuring program in the first quarter of 2009. The first quarter 2009 program included provisions for severance for 60 employees totaling $2.3 million. The fourth quarter 2008 program resulted in the elimination of more than 80 positions.

The increase in other income compared to the first quarter of 2008 reflects a $1.2 million gain related to the disposition of land in Europe. The tax benefit recorded for the first quarter of 2009 reflects no tax provided for the land sale gain, due to the utilization of net operating losses, which were previously not benefited.

The decrease in equity income reflects declining steel demand caused by declines in the auto industry that impacted the Company's Japanese affiliate.

Balance Sheet and Cash Flow Items

The Company's net debt-to-total-capital ratio remained strong at 31% as of March 31, 2009, compared to 32% as of December 31, 2008. In addition, cash flows from operations improved $14.4 million compared to the first quarter of 2008, largely the result of improved working capital levels.

The Company is closely monitoring the current circumstances surrounding Chrysler LLC and General Motors Corporation, two of the Company's largest customers, both of whom have pending requests for additional government funding. The Company's accounts receivable for General Motors Corporation and Chrysler LLC were approximately $6.7 million and $5.8 million, respectively, as of March 31, 2009. The Company has taken steps which it believes significantly reduces its exposure, and continues to pursue other measures to minimize this risk.

Quaker Chemical Corporation is a leading global provider of process chemicals, chemical specialties, services, and technical expertise to a wide range of industries - including steel, automotive, mining, aerospace, tube and pipe, coatings and construction materials. Our products, technical solutions, and chemical management services enhance our customers' processes, improve their quality, and lower their costs. Quaker's headquarters is located near Philadelphia in Conshohocken, Pennsylvania.

This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. A major risk is that the Company's demand is largely derived from the demand for its customers' products, which subjects the Company to downturns in a customer's business and unanticipated customer production shutdowns. Other major risks and uncertainties include, but are not limited to, significant increases in raw material costs, customer financial stability, worldwide economic and political conditions, foreign currency fluctuations, and future terrorist attacks such as those that occurred on September 11, 2001. Other factors could also adversely affect us. Therefore, we caution you not to place undue reliance on our forward-looking statements. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995.

As previously announced, Quaker Chemical's investor conference call to discuss first quarter results is scheduled for April 29, 2009 at 2:30 p.m. (ET). Access the conference by calling 877-269-7756 or visit Quaker's Web site at http://www.quakerchem.com/ for a live webcast.

                          Quaker Chemical Corporation                          ----------------------------                   Condensed Consolidated Statement of Income                   ------------------------------------------         (Dollars in thousands, except per share data and share amounts)         ---------------------------------------------------------------                                                               (Unaudited)                                                             ------------                                                              Three Months                                                           Ended March 31,                                                          -----------------                                                             2009      2008                                                             ----      ----    Net sales                                              $98,507  $147,718    Cost of goods sold                                      69,793   104,083                                                           ------   -------    Gross margin                                            28,714    43,635    %                                                        29.1%     29.5%    Selling, general and administrative expenses            26,697    34,504   Restructuring and related charges                        2,289         -                                                            -----       ---    Operating (loss) income                                   (272)    9,131    %                                                        -0.3%      6.2%    Other income, net                                        1,454       161   Interest expense, net                                   (1,089)   (1,182)                                                           ------    ------   Income before taxes                                         93     8,110    Taxes on income                                           (251)    2,765                                                             ----     -----                                                              344     5,345    Equity in net (loss) income of associated companies       (142)      112                                                             ----       ---    Net income                                                 202     5,457    Less: Net Income attributable to noncontrolling    interest                                                  200       364                                                              ---       ---    Net income attributable to Quaker Chemical Corporation      $2    $5,093                                                               ==    ======    %                                                         0.0%      3.4%    Per share data:   ---------------     Net income attributable to Quaker Chemical      Corporation - basic                                   $0.00     $0.50     Net income attributable to Quaker Chemical      Corporation - diluted                                 $0.00     $0.50                            Quaker Chemical Corporation                         ----------------------------                     Condensed Consolidated Balance Sheet                     -------------------------------------          (Dollars in thousands, except par value and share amounts)          ----------------------------------------------------------                                                          (Unaudited)                                                         -----------                                                    March 31,   December 31,                                                       2009           2008                                                       ----           ----   ASSETS    Current assets     Cash and cash equivalents                      $17,977        $20,892     Construction fund (restricted cash)              7,455          8,281     Accounts receivable, net                        89,575         98,702     Inventories, net                                46,285         57,419     Prepaid expenses and other current assets       14,987         15,532                                                     ------         ------       Total current assets                         176,279        200,826    Property, plant, and equipment, net               59,291         60,945   Goodwill                                          41,889         40,997   Other intangible assets, net                       6,123          6,417   Investments in associated companies                7,404          7,987   Deferred income taxes                             35,638         34,179   Other assets                                      40,451         34,088                                                     ------         ------       Total assets                                $367,075       $385,439                                                   ========       ========    LIABILITIES AND SHAREHOLDERS' EQUITY    Current liabilities     Short-term borrowings and current portion      of long-term debt                              $2,673         $4,631     Accounts and other payables                     41,933         51,341     Accrued restructuring and related activities     1,804          2,198     Accrued compensation                             6,652          7,741     Accrued pension and postretirement benefits      7,369          7,380     Other current liabilities                       12,006         10,573                                                     ------         ------       Total current liabilities                     72,437         83,864   Long-term debt                                    77,629         84,236   Deferred income taxes                              7,638          7,156   Accrued pension and postretirement benefits       36,852         37,638   Other non-current liabilities                     44,338         42,670                                                     ------         ------       Total liabilities                            238,894        255,564                                                    -------        -------    Quaker shareholders' equity     Common stock, $1 par value; authorized      30,000,000 shares; issued 10,997,036           10,997         10,833     Capital in excess of par value                  25,495         25,238     Retained earnings                              117,091        117,089     Accumulated other comprehensive loss           (29,490)       (27,237)                                                    -------        -------       Total Quaker shareholders' equity            124,093        125,923                                                    -------        -------       Noncontrolling interest                        4,088          3,952                                                      -----          -----       Total shareholders' equity                   128,181        129,875                                                    -------        -------         Total liabilities and shareholders'          equity                                   $367,075       $385,439                                                   ========       ========                             Quaker Chemical Corporation                          ----------------------------                Condensed Consolidated Statement of Cash Flows                -----------------------------------------------                      For the three months ended March 31,                      ------------------------------------                             (Dollars in thousands)                             ----------------------                                                                (Unaudited)                                                              -----------                                                              2009     2008                                                              ----     ----   Cash flows from operating activities     Net income                                               $202   $5,457     Adjustments to reconcile net income to net cash      provided by (used in) operating activities:       Depreciation                                          2,458    2,680       Amortization                                            257      300       Equity in net loss (income) of associated        companies, net of dividends                            142     (112)       Deferred compensation and other, net                 (2,852)   1,268       Stock-based compensation                                352      376       Restructuring and related charges                     2,289        -       Gain on disposal of property, plant and equipment    (1,193)     (35)       Insurance settlement realized                          (144)    (136)       Pension and other postretirement benefits            (1,907)  (2,458)     Increase (decrease) in cash from changes in current      assets and current liabilities, net of      acquisitions:       Accounts receivable                                   7,196    1,159       Inventories                                          10,060   (2,374)       Prepaid expenses and other current assets                34   (3,037)       Accounts payable and accrued liabilities             (6,045)  (9,280)       Change in restructuring liabilities                  (2,652)       -                                                            ------      ---         Net cash provided by (used in) operating          activities                                         8,197   (6,192)                                                             -----   ------    Cash flows from investing activities     Capital expenditures                                   (2,375)  (1,949)     Payments related to acquisitions                       (1,000)  (1,000)     Proceeds from disposition of assets                     1,605       65     Insurance settlement received and interest earned       5,056    5,112     Change in restricted cash, net                         (4,086)  (4,976)                                                            ------   ------         Net cash used in investing activities                (800)  (2,748)                                                              ----   ------    Cash flows from financing activities     Net decrease in short-term borrowings                  (1,619)    (378)     Proceeds from long-term debt                            1,584    9,844     Repayments of long-term debt                           (7,728)    (251)     Dividends paid                                         (2,492)  (2,181)     Stock options exercised, other                             69    1,486     Distributions to noncontrolling shareholders                -        -                                                               ---      ---         Net cash (used in) provided by financing          activities                                       (10,186)   8,520                                                           -------    -----      Effect of exchange rate changes on cash                  (126)     752       Net (decrease) increase in cash and cash        equivalents                                         (2,915)     332       Cash and cash equivalents at the beginning of the        period                                              20,892   20,195                                                            ------   ------       Cash and cash equivalents at the end of the period  $17,977  $20,527                                                           =======  =======  

Quaker Chemical Corporation

CONTACT: Mark A. Featherstone, Vice President and Chief FinancialOfficer, +1-610-832-4160

Web Site: http://www.quakerchem.com/

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