Innophos’ Established Competitive Strengths

Provide a Unique Business Advantage

®	Largest and broadest specialty phosphates producer in North America, with #1 or #2 position in all product lines.
®	Diversified end markets provide steady demand growth and industry dynamics support earnings growth.
®	Proprietary process technologies allow IPHS to tailor products to customer needs, providing a platform for growth.
®	Near term de-leveraging, cost structure improvement, productivity increases and excellent free cash flow support a strengthening financial position.

®	High industry capacity utilization creates favorable supply-demand balance; sustainable profit potential for Innophos.
®	High capital costs and logistics limit risks of imports/new capacity.
®	A stable customer base, relationships that span many decades.
®	Position in niche markets produces better margins and pricing power.
®	Broad demand for IPHS phosphates in a wide variety of end products.

®	Applications in a broad range of niche markets require specialized and proprietary process technology.
®	Specialization provides a platform for growth and profitability; targeting high growth niche areas and developing new applications for phosphate products.
®	Technical support: IPHS works with customers to develop solutions to meet very specific needs.

Innophos’ Immediate Sustainable Goal: De-Lever

®	Focus is on de-leveraging through simultaneous earnings growth and debt paydown.
®	The de-leveraging stage of an LBO drives increasing equity value as one de-risks the company.
®	$21 Million Debt payments in 2007…continued net debt reduction in 2008.

Market Outlook - 2008

®	High world demand for fertilizers is affecting Innophos’ key raw materials; costs are rapidly increasing.
®	Innophos buys its key raw materials under long term contracts with pricing formulas. These contracts help to buffer short term raw material cost changes.
®	Innophos is responding to higher raw material costs by raising prices to its customers.
®	Demand is strong, shortage of specialty phosphate supply, market is accepting price increases.
®	During 2008 Innophos therefore anticipates getting benefit of higher market selling prices, without feeling immediate full impact of market raw material cost increases.

In Summary…

®	Largest and broadest specialty phosphates producer in North America, with #1 or #2 position in all product lines.
®	Diversified end markets provide steady demand growth and industry dynamics support earnings growth.
®	Proprietary process technologies allow IPHS to tailor products to customer needs, providing a platform for growth.
®	Near term de-leveraging, cost structure improvement, productivity increases and excellent free cash flow support a strengthening financial position.