Exhibit 99.1

Caesarstone Reports Third Quarter 2012 Results

· Third Quarter Sales and Net Income Set Quarterly Record

· Revenues Increase to $77.6 million on Strong North America Performance

· Net Income Up 23% to $12.4 million, EPS of $0.36, Adjusted EPS of $0.39

· Company Announces Plans to Increase Capacity, both in its Bar-Lev Plant and in a  New Production Facility in the United States

MP MENASHE, Israel--(BUSINESS WIRE) -- Caesarstone Sdot-Yam Ltd. (CSTE), a manufacturer of high quality engineered quartz surfaces, today reported financial results for its third quarter ended September 30, 2012.

Revenues in the third quarter of 2012 increased by 4.6% to $77.6 million compared to $74.2 million in the same quarter in the prior year.  Growth in revenues was predominantly driven by continued increases in sales in the United States and Canada, up 17.7% and 29.1% respectively, compared to the same period in the prior year.  Revenue growth was partially offset by the impact of a stronger US Dollar and a challenging housing market in Australia.  On a constant currency basis, third quarter revenue growth was 8.5% compared to the same period last year.

Yosef Shiran, Chief Executive Officer, commented, “We are very pleased with our third quarter, which set a record for any quarter in our history for both sales and profitability.  We are positioned as the highest quality quartz brand and are successfully executing our global growth strategy.”

Gross margin in the third quarter increased to 45.0% compared to 42.4% in the same period in the prior year.  This improvement was driven primarily by economies of scale over fixed manufacturing expenses and favorable geographical revenue mix.  While changes in foreign exchange rates impacted revenue negatively, they also reduced cost of goods sold equally, eliminating the impact on gross profit and thereby increasing gross margins.

Operating expenses in the third quarter were $18.2 million, or 23.5% of revenues.  This compares to the prior year’s third quarter’s level of $17.8 million, or 24.1% of revenues.  The Company noted that the year-ago quarter contained a litigation credit of $1.8 million and adjusting for that, operating expenses were down approximately 7% compared to the prior year.  This reduction was driven mainly by the elimination of management fees, and favorable foreign exchange rates. While overall expenses declined, the Company noted that it had increased sales and marketing expenses by 11.6% compared to the same quarter in the prior year.

Operating income in the third quarter increased 22.8% to $16.7 million, or 21.5% of revenues, compared to $13.6 million, or 18.3% of revenues, in the same quarter in the prior year.

Adjusted EBITDA, which excludes share-based compensation, the excess cost of acquired inventory and other non-recurring costs, was $21.3 million in the third quarter, a margin of 27.5%. This compares to adjusted EBITDA of $18.0 million, a margin of 24.3% in the same quarter in the prior year.

Finance expenses in the third quarter were $2.0 million compared to $0.8 million during the same period in the prior year.  $1.7 million of these expenses relate to losses on foreign exchange hedges.

The Company’s reported GAAP net income attributable to controlling interest for the third quarter of  $12.4 million, an increase of 22.8% compared to $10.1 million in the same quarter in the prior year.  Earnings per share were $0.36 on 34.4 million shares on a fully diluted basis versus $0.37 per share on  a fully diluted basis of 19.6 million shares, which was prior to the Company’s initial public offering.

Adjusted net income attributable to controlling interest for the third quarter was $13.4 million, an increase of 28.0%, compared to $10.4 million in the same quarter in the prior year.  Adjusted earnings per share for both periods were $0.39.

The Company’s balance sheet as of September 30, 2012 was solid with a cash balance of $62.1 million, reflecting both strong cash generation in the quarter and the proceeds of the sale and lease-back of the Company’s Bar-Lev facility.

Capacity Expansion Plans

The Company also announced today that it planned to expand its existing production capabilities in Israel to incorporate additional manufacturing equipment that constitutes a major part of a fifth line and to build a new production facility in the United States.

Mr. Shiran commented, “We believe that expanding our manufacturing footprint into the United States will provide us with a number of competitive and strategic benefits that will serve our long-term growth plans, most significantly the related improvement in delivery times.  At the same time, our expansion in Israel will enable us to rapidly and efficiently expand our production capacity to meet the increasing demand for our products.  We are excited about both of these projects, which are further steps in realizing our growth strategy and are expected to create value for our shareholders.”

The expansion in Israel is expected to increase total capacity by approximately 15%.  This project is expected to have a capital cost of $13 million and to be completed by October of 2013.

The US facility is planned to support two production lines with the ability to expand current production by 50%.  The total capital cost of this facility is estimated to be $75 million, with roughly 60% necessary for the construction of the first line and infrastructure to be shared by both.  The first line is expected to be operational in late 2014.  The second line expansion will be implemented subject to actual growth.

Guidance

The Company noted today that for the full year 2012 it expects revenues at the lower end of its prior guidance of $292 million to $302 million.  The Company also maintains its adjusted EBITDA guidance of $67 million to $70 million.

Conference Call Details

Yosef Shiran, the Company’s Chief Executive Officer, and Yair Averbuch, the Company’s Chief Financial Officer, will host a conference call today, November 7th, 2012, at 8:30 a.m. EST to discuss the results of the third quarter ended September 30, 2012, followed by a question and answer session for the investment community.  A live webcast of the call can be accessed at ir.caesarstone.com or www.viavid.com in the events section.  To access the call, dial toll-free 1-888-471-3843 or +1-719-325-2329 (international).  Israeli participants can dial in at 1-80-924-5906.  The pass code is 6933247.

To listen to a telephonic replay of the conference call, dial toll-free 1-877-870-5176 or +1-858-384-5517 (international) and enter pass code 6933247.  The replay will be available beginning at 11:30 a.m. EST on November 7, 2012 and will last through 11:59 PM EST November 21, 2012.

About Caesarstone

Caesarstone manufactures high quality engineered quartz surfaces, which are used in both residential and commercial buildings as countertops, vanities, wall cladding, floors and other interior surfaces.  The wide variety of colors, styles, designs and textures of Caesarstone® products , along with Caesarstone's inherent characteristics such as hardness, non-porous, scratch and stain resistance and durability, provide consumers with excellent surfaces for their internal spaces which are highly competitive to granite, manufactured solid surfaces and laminate, as well as to other engineered quartz surfaces.  Caesarstone's four collections of products – Classico, Supremo, Motivo and Concetto – are available in over 40 countries around the world.  For more information about the Company, please visit our website www.caesarstone.com.

Non-GAAP Financial Measures

The non-GAAP measures presented by the Company should be considered in addition to, and not as a substitute for, comparable GAAP measures.  A reconciliation of GAAP net income to adjusted net income and adjusted EBITDA to net income is provided below.  The Company provides these non-GAAP financial measures because it believes that they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance.  Accordingly, the Company believes that they are useful to investors in enhancing an understanding of the Company’s operating performance.

Forward-Looking Statements

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company's plans, objectives and expectations for future operations, including its projected results of operations and the expected timing of expanding its production facilities.  These forward-looking statements are based upon management's current estimates and projections of future results or trends.  Actual results may differ materially from those projected as a result of certain risks and uncertainties.  These factors include, but are not limited to: the strength of the home renovation and construction sectors; economic conditions within any of our key existing markets; actions by our competitors; changes in raw material prices, particularly polymer resins and pigments; unpredictability of seasonal fluctuations in revenues; the outcome of silicosis claims and the claim by our former quartz processor; fluctuations in currency exchange rates; delays in manufacturing if our suppliers are unable to supply raw materials; and other factors discussed under the heading "Risk Factors" in the final prospectus for our initial public offering filed with the Securities and Exchange Commission.  These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact  James Palczynski  ICR, Inc. +1 (203) 682-8229 jp@icrinc.com Company Contact Yair Averbuch Chief Financial Officer +972 4 6109 217 yairav@caesarstone.com

Caesarstone Sdot-Yam Ltd. and its subsidiaries
Consolidated balance sheets
	As of
U.S. dollars in thousands	December 31, 2011		September 30, 2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	11,950	$	28,380
Short-term bank deposits		-		33,700
Trade receivables		36,798		46,467
Other accounts receivable and prepaid expenses		13,474		15,963
Inventories		48,085		50,606
Total current assets		110,307		175,116
LONG-TERM INVESTMENTS:
Severance pay fund		2,942		3,090
Long-term deposits		343		314
Total long-term investments		3,285		3,404
PROPERTY, PLANT AND EQUIPMENT, NET		69,657		71,068
OTHER ASSETS		20,626		17,905
GOODWILL		42,442		43,158
Total assets	$	246,317	$	310,651
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term bank credit	$	3,866	$	4,162
Current maturities of long-term loans		12,541		8,254
Trade payables		30,838		33,590
Account payables to related parties		5,437		2,642
Accrued expenses and other liabilities		29,033		18,244
Total current liabilities		81,715		66,892
LONG-TERM LIABILITIES:
Long-term loans		5,405		-
Long-term loan from related party		1,820		12,058
Capital leases		71		7
Accrued severance pay		3,584		3,747
Long-term warranty provision		1,439		1,453
Deferred tax liabilities, net		8,248		6,650
Share-based payment in subsidiary		1,379		-
Total long-term liabilities		21,946		23,915
REDEEMABLE NON-CONTROLLING INTEREST		6,205		7,006
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY:
Share capital -
Ordinary shares		192		360
Cumulative preferred shares		86		-
Additional paid-in capital		55,338		134,867
Accumulated other comprehensive income		13,682		8,765
Retained earnings		67,153		68,846
Total equity		136,451		212,838
Total liabilities and equity	$	246,317	$	310,651

Caesarstone Sdot-Yam Ltd. and its subsidiaries

Consolidated statements of income

	Three months ended September 30,						Nine months ended September 30,
U.S. dollars in thousands	2011			2012			2011			2012
Revenues	$	74,151		$	77,556		$	192,590		$	220,342
Cost of revenues		42,705			42,633			114,478			124,804
Gross profit		31,446			34,923			78,112			95,538
Operating expenses:
Research and development, net		616			388			1,706			1,697
Marketing and selling		9,678			10,797			23,640			34,379
General and administrative		7,551			7,034			21,182			21,691
Total operating expenses		17,845			18,219			46,528			57,767
Operating income		13,601			16,704			31,584			37,771
Finance expenses, net		834			1,986			1,756			2,998
Income before taxes on income		12,767			14,718			29,828			34,773
Taxes on income		2,616			2,045			4,106			5,377
Income after taxes on income		10,151			12,673			25,722			29,396
Equity in losses of affiliate, net		-			-			(67	)		-
Net income		10,151			12,673			25,655			29,396
Net income attributable to non-controlling interest		(84	)		(310	)		(308	)		(521	)
Net income attributable to controlling interest		10,067			12,363			25,347			28,875
Dividends attributable to preferred shareholders		2,909			-			7,329			-
Net income attributable to the Company's ordinary shareholders	$	7,158		$	12,363		$	18,018		$	28,875
Diluted net income per share of ordinary shares	$	0.37		$	0.36		$	0.92		$	0.90
Weighted average number of ordinary shares used in computing basic income per share		19,565,000			34,365,250			19,565,000			32,067,184
Weighted average number of ordinary shares used in computing diluted income per share		19,565,000			34,380,274			19,565,000			32,079,099

Caesarstone Sdot-Yam Ltd. and its subsidiaries

Consolidated statements of cash flows

	Nine months ended September 30,
U.S. dollars in thousands	2011			2012
Cash flows from operating activities:
Net income	$	25,655		$	29,396
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,567			10,815
Share-based compensation expense		-			3,045
Decrease in share-based payment		-			(1,383	)
Accrued severance pay, net		(116	)		33
Changes in deferred tax, net		(2,375	)		(1,482	)
Equity in loss of affiliate, net		67			-
Capital losses		(84	)		(79	)
Foreign exchange remeasurement gains		815			460
Increase in trade receivables including receivable from related party		(16,999	)		(10,962	)
Increase in other accounts receivable and prepaid expenses		(4,930	)		(3,186	)
Decrease (increase) in inventories		1,577			(3,872	)
Increase in trade payables		339			1,577
Incearse (decrease) in warranty provision		(59	)		95
Decrease in accrued expenses and other liabilities including related parties		(5,748	)		(7,806	)
Net cash provided by operating activities		8,709			16,651
Cash flows from investing activities:
Acquisition of U.S. Quartz Products, Inc.		(16,213	)		-
Acquisition of the business of White-Wood Distributors Ltd.		(1,771	)		-
Acquisition of the business of Prema Asia Marketing PTE Ltd.		-			(150	)
Purchase of property, plant and equipment		(5,276	)		(8,308	)
Investment in short-term deposits		-			(33,700	)
Decrease (increase) in long-term deposits		(43	)		35
Repayment of loan by related party and other		72			-
Net cash used in investing activities		(23,231	)		(42,123	)
Cash flows from financing activities:
Dividend paid		(4,261	)		(27,182	)
Receipt from issuance of ordinary shares, net		-			76,815
Repayment of long-term loans		(16,481	)		(9,954	)
Short-term bank credit and loans, net		(4,193	)		125
Repayment of contingent consideration related to U.S. Quartz Products, Inc acquisition.		-			(6,242	)
Contribution to equity by non-controlling interest		307			-
Receipt of finance loan related to Bar-Lev transaction		-			10,893
Receipt of long-term loan from related party		1,857			-
Repayment of finance loan related to Bar-Lev transaction		-			(88	)
Net cash (used in) provided by financing activities		(22,771	)		44,367
Effect of exchange rate differences on cash and cash equivalents		1,397			(2,465	)
Increase (decrease) in cash and cash equivalents		(35,896	)		16,430
Cash and cash equivalents at beginning of year		43,737			11,950
Cash and cash equivalents at end of year		7,841			28,380
non - cash investing and financing activities:
Purchase of fixed assets with credit from suppliers		787			2,650

Caesarstone Sdot-Yam Ltd. and its subsidiaries

	Three months ended September 30,					Nine months ended September 30,
U.S. dollars in thousands	2011			2012		2011			2012
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	10,151		$	12,673	$	25,655		$	29,396
Finance expenses, net		834			1,986		1,756			2,998
Taxes on income		2,616			2,045		4,106			5,377
Depreciation and amortization		4,008			3,488		10,567			10,815
Equity in losses of affiliate, net (a)		-			-		67			-
Excess cost of acquired inventory (b)		1,979			113		3,801			782
Share-based compensation expense (c)		220			1,005		1,159			2,392
IPO bonus (d)		-			-		-			1,970
USQ purchase price adjustment (e)		-			-		-			255
Litigation credit (f)		(1,783	)		-		(1,783	)		(1,001	)
Adjusted EBITDA	$	18,025		$	21,310	$	45,328		$	52,984

(a)	Consists of the Company's portion of the results of operations of Caesarstone USA prior to its acquisition by the Company in May 2011.
(b)	Consists of the difference between the standard cost of the Company's inventory and the higher carrying cost in two of the Company's subsidiaries: Caesarstone USA’s inventory at the time of its acquisition and Caesarstone Australia's ("CSA") inventory that was purchased from its distributer. These differences adversely impact our gross margins until such inventory is sold. The majority of the acquired inventory in  Caesarstone USA was sold in 2011, while the acquired inventory in Caesarstone Australia is expected to be sold by the end of 2012.
(c)	In 2011, share-based compensation consists of changes in the value of share-based rights granted in January 2009 to the Company's Chief Executive Officer.
	In 2012, share-based compensation consists primarily of expenses related to the stock options granted to employees of the Company, as well as changes in the value of share-based rights granted to the Company's Chief Executive Officer in January 2009.
(d)	Consists of the payment of $1.7 million to certain employees of the Company and $0.25 million to the Company's Chairman for their contribution to the completion of the Company's IPO.
(e)	In May 2011, the Company acquired the remaining 75% equity interest in its U.S distributer, Caesarstone USA, in which it acquired a 25% interest in January 2007. The acquisition price was $26.5 million and the majority of the amount was paid in 2011, while the balance of the purchase price was payable following the closing of the Company's IPO.
(f)	In 2011, litigation credit consists of a mediation award in our favor pursuant to two trademark infringement cases brought by Caesarstone Australia Pty Limited.In 2012, the litigation credit relates to the settlement agreement with the former CEO of CSA. The Company has been engaged in litigation with the formerCEO of CSA since mid-2010, which included, among other things, his claim seeking an order requiring the Company to purchase his shares in CSA inaccordance with his agreement with the Company and CSA or at a fair and reasonable price. In May 2012, the Company entered into a settlement agreementwith the former CEO of CSA pursuant to which he transferred the ownership in any shares in CSA he received in connection with his employment with CSA.The Company made no payment in consideration for such transferor any other payment in favor of the former CEO. As a result of this settlement, the Company has reversed the liability connected to this litigation and theadjustment is presented net of the related litigation expenses incurred for the settlement process.

Caesarstone Sdot-Yam Ltd. and its subsidiaries
	Three months ended September 30,					Nine months ended September 30,
U.S. dollars in thousands	2011			2012		2011			2012
Reconciliation of Net Income Attributable to Controlling Interest to Adjusted Net Income:
Net income attributable to controlling interest	$	10,067		$	12,363	$	25,347		$	28,875
Excess cost of acquired inventory (a)		1,979			113		3,801			782
Share-based compensation expense (b)		220			1,005		1,159			2,392
IPO bonus (c)		-			-		-			1,970
USQ Purchase Price adjustment (d)		-			-		-			255
Litigation credit (e)		(1,783	)		-		(1,783	)		(1,001	)
Total adjustments before tax		416			1,118		3,177			4,398
Less tax on above adjustments (f)		46			123		347			480
Total adjustments after tax		370			995		2,830			3,918
Adjusted net income attributable to controlling interest		10,437			13,358		28,177			32,793
Dividends attributable to preferred shareholders		2,882			-		8,129			-
Net income attributable to the Company's ordinary shareholders	$	7,555		$	13,358	$	20,048		$	32,793
Adjusted diluted EPS		0.39			0.39		1.02			1.02

(a)  Consists of the difference between the standard cost of the Company's inventory and the higher carrying cost in two of the Company's subsidiaries:Caesarstone USA’s inventory at the time of its acquisition and Caesarstone Australia's ("CSA") inventory that was purchased from its distributer. These differences adversely impact our gross margins until such inventory is sold. The majority of the acquired inventory in Caesarstone USA was sold in 2011, while the acquired inventory in Caesarstone Australia is expected to be sold by the end of 2012.

(b)  In 2011, share-based compensation consists of changes in the value of share-based rights granted in January 2009 to the Company's Chief Executive Officer. In 2012, share-based compensation consists primarily of expenses related to the stock options granted to employees of the Company, as well as changes in the value of share-based rights granted in January 2009 to the Company's Chief Executive Officer.

(c)  Consists of the payment of $1.7 million to certain employees of the Company and $0.25 million to the Company's Chairman for their contributionto the completion of the Company's IPO.

(d)  In May 2011, the Company acquired the remaining 75% equity interest in its U.S distributer, Caesarstone USA, in which it acquired a25% interest in January 2007. The acquisition price was $26.5 million and the majority of the amount was paid in 2011, while the balance of the purchase price was payable following the closing of the Company's IPO.

(e)  In 2011, litigation credit consists of a mediation award in our favor pursuant to two trademark infringement cases brought by Caesarstone Australia Pty Limited.In 2012, the litigation credit relates to the settlement agreement with the former CEO of CSA. The Company has been engaged in litigation with the former CEO of CSA since mid-2010, which included, among other things, his claim seeking an order requiring the Company to purchase his shares in CSA in accordance with his agreement with the Company and CSA or at a fair and reasonable price. In May 2012, the Company entered into a settlement agreement with the former CEO of CSA pursuant to which he transferred the ownership in any shares in CSA he received in connection with his employment with CSA. The Company made no payment in consideration for such transferor any other payment in favor of the former CEO. As a result of this settlement, the Company has reversed the liability connected to this litigation and theadjustment is presented net of the related litigation expenses incurred for the settlement process.

(f)  Tax adjustments reflect the increase in taxes on income that would have been reflected in our consolidated income statements forthe applicable period if the adjustments set forth in the table were not applied in computing net income. The tax effect is based on effective tax rate for 2011.

Caesarstone Sdot-Yam Ltd. and its subsidiaries
Geographic breakdown of revenues by region
	Three months ended September 30,				Nine months ended September 30,
U.S. dollars in thousands	2011		2012		2011		2012
Australia		24,858		22,919		66,520		63,620
USA		19,627		23,094		41,547		64,987
Israel		10,328		9,674		29,841		27,674
Canada		8,439		10,892		21,247		29,396
Europe		5,509		5,182		17,760		16,352
Rest of World		5,390		5,795		15,675		18,313
	$	74,151	$	77,556	$	192,590	$	220,342