Ferro's Engineered Polymer Products Business Announces Price Increases for Filled and Reinforced Plastic Compounds

Business Wire,  May 7, 2008  

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CLEVELAND -- Ferro Corporation's (NYSE:FOE) Engineered Polymer Products business has announced it is increasing the price for all filled and reinforced plastic compounds produced at its facility in Evansville, IN. The increase of $0.06 per pound is effective with shipments made as of June 1, 2008, or as supply contracts allow.

James Kolenc, Business Director, Engineered Polymer Products, attributed the need for price increases to unprecedented escalation of costs for polypropylene, transportation and energy. "We have worked diligently to mitigate these cost increases and minimize the impact on our customers," said Kolenc. "Unfortunately, we are unable to absorb these increases any further. This pricing action supports our ability to continue to provide competitive, high-value products and services to our customers."

Engineered Polymer Products manufactures engineered plastics composites, plastic color concentrates and advanced polymer alloys, and offers manufacturing of custom alloys. Its products are available globally from manufacturing facilities in the U.S. and Europe.

About Ferro Corporation

Ferro Corporation is a leading global supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of industries, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products. Headquartered in Cleveland, Ohio, the Company has approximately 6,300 employees globally and reported sales of $2.2 billion in 2007. Additional information about the Company can be found at www.ferro.com.

Cautionary Note on Forward-Looking Statements

Certain statements in this Ferro press release may constitute "forward-looking statements" within the meaning of Federal securities laws. These statements are subject to a variety of uncertainties, unknown risks and other factors concerning the Company's operations and business environment, which are difficult to predict and often beyond the control of the Company. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include the following:

* We depend on reliable sources of raw materials and other supplies at a reasonable cost, but availability of such materials and supplies could be interrupted and/or the prices charged for them could escalate.

* The markets in which we participate are highly competitive and subject to intense price competition.

* We are striving to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques, but we may not be successful in achieving the desired improvements.

* We are engaged in restructuring programs to improve manufacturing efficiency and reduce costs. If we are not successful in the execution of our restructuring programs we will not realize the expected cost savings.

* Our products are sold into industries where demand is unpredictable, cyclical or heavily influenced by consumer spending.

* The global scope of our operations exposes us to risks related to currency conversion and changing economic, social and political conditions around the world.

* We have a growing presence in the Asia-Pacific region where it can be difficult for an American company to compete lawfully with local competitors.

* Regulatory authorities in the U.S., European Union and elsewhere are taking a much more aggressive approach to regulating hazardous materials and those regulations could affect our sales and operating profits.

* Our operations are subject to stringent environmental, health and safety regulations and compliance with those regulations could require us to make significant investments.

* We depend on external financial resources and any interruption in access to capital markets or borrowings could adversely affect our financial condition.

* Interest rates on some of our external borrowings are variable and our borrowing cost could be affected adversely by interest rate increases.

* Many of our assets are encumbered by liens that have been granted to lenders and those liens affect our flexibility in making timely dispositions of property and businesses.

* We are subject to a number of restrictive covenants in our credit facilities and those covenants could affect our flexibility in funding strategic initiatives.

* We have significant deferred tax assets and our ability to utilize these assets will depend on our future performance.

* We are a defendant in several lawsuits that could have an adverse effect on our financial condition and/or financial performance, unless they are successfully resolved.

* Our businesses depend of a continuous stream of new products and failure to introduce new products could affect our sales and profitability.