First Quarter Results

-- Net sales for the first quarter 2009 were $190.8 million, an increase of

$28.3 million, or 17.4%, as compared to $162.5 million for the same

period in 2008. Selling price increases had a positive effect on

revenue of $124.8 million or 77% that occurred primarily in Purified

Phosphoric Acid and Specialty Salts & Specialty Acids. STPP (sodium

tripolyphosphate) & Other Products, which showed a net selling price

increase, was negatively affected by declines in granular triple

super-phosphate (GTSP) fertilizer co-product prices. The effects of

volume and mix on revenue were $96.5 million, or negative 59%, and

occurred primarily in Purified Phosphoric Acid and Specialty Salts &

Specialty Acids. STPP & Other Products, which showed a net volume

and mix decline, was positively affected by increased GTSP sales volumes

which were slightly above an historical average quarter. Volume and mix

effects on revenue were consistent across all reporting segments.

-- Operating income for the first quarter 2009 was $55.3 million, an

increase of $31.9 million, or 136%, versus $23.4 million for the

comparable period in 2008. Included in the 2009 first quarter results

was a net inventory re-pricing benefit of $6.1 million, as volumes sold

at 2008 carrying costs were replaced by higher 2009 raw material costs.

-- Depreciation and amortization for the first quarter 2009, excluding

deferred financing amortization expense, was $11.6 million, a decrease

of $0.9 million compared to $12.5 million for the first quarter of 2008.

-- Net interest expense for the first quarter 2009, including deferred

financing amortization expense, was $7.7 million, a decrease of $0.9

million versus $8.6 million for the comparable period in 2008.

-- Tax expense for the first quarter 2009 was $17.1 million, an increase of

$11.8 million versus $5.3 million for the comparable period in 2008.

-- Net income for the first quarter 2009 was $30.2 million, an improvement

of $20.9 million compared to $9.3 million for the same period in 2008.

-- Diluted earnings per share for the first quarter 2009 were $1.39

compared to $0.43 for the first quarter of 2008.

-- As of March 31, 2009, Innophos had $136.9 million of cash and cash

equivalents. Net debt at the end of the first quarter 2009 was $191.6

million, a decrease of $65.6 million from $257.2 million at December 31,

2008. There were no borrowings under the Company's revolving

credit line at March 31, 2009. Capital expenditures for the first

quarter 2009 were $3.1 million compared to $4.1 million for the first

quarter 2008.

Randy Gress, CEO of Innophos, commented on the results, "With operating income at $55.3 million and net income at $30.2 million, first quarter 2009 results were strong, reflecting selling price increases put into place in 2008, although volume declines in the core business continue to indicate reduced demand caused by the economic crisis together with increased competitive pressure in all segments.

"Although at significantly reduced prices, the fertilizer market has begun to function, enabling us to clear excess GTSP co-product inventory sooner than forecasted, with a positive effect on cash flow during the first quarter. I am also pleased to note that strong cash generation across the business enabled us to decrease net debt to an all time low during the first quarter.

"We are currently experiencing pressure on selling prices as we drive to maintain our market share. Overall our focus continues to be on seeking greater operational and financial efficiencies with selective investment in order to maintain our strong leadership positions in our core business."

Segment Results 1Q 2009 Versus 1Q 2008

United States

-- Year on year quarterly net sales increased 31.6% due to higher prices

across all product lines, most notably in Specialty Salts &

Specialty Acids which exceeded lower volume and mix effects on revenue

across all product lines, again most notably in Specialty Salts &

Specialty Acids.

-- Operating income increased by $36.3 million from $4.6 million in the

first quarter of 2008 to $40.9 million in the first quarter of 2009.

This improvement was driven by higher selling prices and lower operating

expenses which exceeded the effects of higher raw material costs and

unfavorable sales volume and mix.

Mexico

-- Net sales decreased 5.6% versus the first quarter of 2008 due to lower

volume and mix effects on revenue in Purified Phosphoric Acid and

Specialty Salts & Specialty Acids which exceeded higher prices in

both segments. STPP & Other Products were relatively flat on

selling prices, volume and mix.

-- Operating income decreased by $10.0 million, from $17.5 million in the

first quarter of 2008 to $7.5 million in the first quarter of 2009,

driven by the effects of higher raw material costs and unfavorable sales

volume and mix partially offset by higher selling prices.

Canada

-- Net sales increased 30.8% versus the same quarter in 2008 due to higher

selling prices across all product lines which exceeded lower volume and

mix effects on revenue across all product lines.

-- Operating income increased by $5.5 million from $1.4 million in 2008 to

$6.9 million in 2009 due to higher selling prices which exceeded the

effects of higher raw material costs and unfavorable sales volume and

mix.

Business Outlook

Considering the uncertainty around Mexican phosphate rock cost and operating levels, softer overall demand, greater competition and concern about the overall economic climate, management believes that reliable, specific operating income guidance cannot be provided for the full year 2009. On a sequential basis, management currently expects second quarter 2009 volumes, excluding GTSP fertilizer sales, to increase approximately 5% from those experienced in the first quarter, with Mexico operating rates unchanged. The Company expects its second quarter 2009 raw material cost structure to be $15-18 million higher than the first quarter due to higher phosphate rock costs in Mexico, the first quarter inventory re-pricing benefit and the mix of phosphoric acid supply in the United States. This increased cost will be offset somewhat by improved fixed cost containment.