Carus Corporation is announcing price increases for all of our potassium permanganate and sodium permanganate product lines effective 01 October 2008 and 01 January 2009, or as agreements allow. The average increases on each date will be approximately 10% to 12% for potassium permanganate and approximately 7% to 8% for sodium permanganate. Increases may vary depending upon volume, contract length, market conditions, and/or region of the world.

The increases are necessary to cover the continuing and significant rise in the cost of manganese ore as reported earlier in 2008. The demand for manganese ore continues to exceed the supply, resulting in upward price pressure for this commodity. Carus has been able to secure ample supply of manganese ore, enabling us to meet the needs of our contracted customers.

We have also been watching the very tight supply situation for potassium hydroxide (KOH), which has been increasing in price due to the price increase of its precursor, potassium chloride (KCl). KCl is a commodity fertilizer which is in great demand and tight supply due to the demand from the global agriculture markets. Again, Carus has been able to secure ample supply of KOH to meet the needs of our contracted customers.

Carus Corporation has a high level of commitment to control product costs for our valued customers while maintaining the highest level of product quality, technical support, and security of delivery available. In light of these unprecedented raw material cost increases, our continuing goal is to invest in our permanganate business in order to support our customers’ needs for the future. We value your continuing business and support as we make every possible effort to control the spiraling costs and minimize the impact on you from the global commodity markets.