Engelhard Applies Surcharge for Copper-Containing Catalysts

"The copper surcharges are necessary due to unusually strong worlddemand and higher costs for base metals," said Victor Sprenger,Engelhard's group vice president and general manager, processtechnologies. "These incremental revenues will offset copper priceincreases."

Engelhard Process Technologies enable customers to improve theproductivity of their processes. With a wide range of technologiesavailable, Engelhard serves a broad range of chemical market segments,including petrochemicals, oleochemicals and fine chemicals.

Engelhard Corporation is a surface and materials science companythat develops technologies to improve customers' products andprocesses. A Fortune 500 company, Engelhard is a world-leadingprovider of technologies for environmental, process, appearance andperformance applications.

Forward-Looking Statements. This announcement containsforward-looking statements. These statements relate to analyses andother information that are based on forecasts of future results andestimates of amounts not yet determinable. These statements alsorelate to future prospects, developments and business strategies.These forward-looking statements are identified by their use of termsand phrases such as "anticipate," "believe," "could," "estimate,""expect," "intend," "may," "plan," "predict," "project," "will" andsimilar terms and phrases, including references to assumptions. Theseforward-looking statements involve risks and uncertainties, internaland external, that may cause Engelhard's actual future activities andresults of operations to be materially different from those suggestedor described in this announcement. For a more thorough discussion ofthese factors, please refer to "Forward-Looking Statements" (excludingthe first sentence thereof), "Risk Factors" and "Key Assumptions" onpages 34, 35 and 38, respectively, of Engelhard's 2005 Annual Reporton Form 10-K, dated March 3, 2006. Please also refer to"Forward-Looking Statements" and "Key Assumptions" contained in theinvestor presentation captioned "Recapitalization Plan" filed as anexhibit on Form 8-K, dated April 26, 2006, and "Forward-LookingStatements" in the Offer to Purchase filed as an exhibit to ScheduleTO, dated May 5, 2006, for additional information regarding suchrisks, uncertainties and contingencies.

Investors are cautioned not to place undue reliance on anyforward-looking statement, which speaks only as of the date made, andto recognize that forward-looking statements are predictions of futureresults, which may not occur as anticipated. Actual results coulddiffer materially from those anticipated in the forward-lookingstatements and from historical results due to the risks anduncertainties described above, as well as others that Engelhard mayconsider immaterial or do not anticipate at this time. The foregoingrisks and uncertainties are not exclusive and further informationconcerning Engelhard and its businesses, including factors thatpotentially could materially affect its financial results orcondition, may emerge from time to time. Investors are advised toconsult any further disclosures Engelhard makes on related subjects inEngelhard's future periodic and current reports and other documentsthat Engelhard files with or furnishes to the Securities and ExchangeCommission ("SEC").

No Offer or Solicitation. This announcement does not constitute anoffer or invitation to purchase nor a solicitation of an offer to sellany securities of Engelhard. The self-tender offer by Engelhardpreviously announced on April 26, 2006 commenced on May 5, 2006. Anyoffers to purchase or solicitation of offers to sell will be made onlypursuant to a tender offer statement (including an offer to purchase,a letter of transmittal and other offer documents) filed by Engelhard("Engelhard's Tender Offer Statement") with the SEC on May 5, 2006.ENGELHARD'S SHAREHOLDERS ARE ADVISED TO READ ENGELHARD'S TENDER OFFERSTATEMENT AND ANY OTHER DOCUMENTS RELATING TO THE TENDER OFFER THATARE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEYWILL CONTAIN IMPORTANT INFORMATION.

Additional Information and Where to Find It. Engelhard also plansto file with the SEC and mail to its shareholders a definitive ProxyStatement on Form 14A relating to the 2006 annual meeting ofshareholders and the election of directors (the "2006 ProxyStatement") and other important information. Engelhard and itsdirectors and certain of its officers may be deemed, under SEC rules,to be participants in soliciting proxies from Engelhard'sshareholders. Information regarding the names of Engelhard's directorsand executive officers and their respective interests in Engelhard bysecurity holdings or otherwise is set forth in Engelhard's ProxyStatement relating to the 2005 annual meeting of shareholders (the"2005 Proxy Statement"). Additional information regarding theinterests of such and other potential participants will be included inthe definitive 2006 Proxy Statement and other relevant documents to befiled with the SEC in connection with Engelhard's 2006 annual meetingof shareholders that will be filed with the SEC. INVESTORS ANDSECURITY HOLDERS ARE ADVISED TO READ THE 2006 PROXY STATEMENT ANDOTHER MATERIALS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANTINFORMATION. On January 9, 2006, BASF filed a Tender Offer Statementon Schedule TO, which has been amended (the "BASF Tender OfferStatement"). In response to the BASF Tender Offer Statement, Engelhardhas filed certain materials with the SEC, including the Schedule 14D-9filed on February 2, 2006, and which has been amended (the "Schedule14D-9").

Investors and security holders may obtain a free copy ofEngelhard's Tender Offer Statement, Schedule 14D-9, 2005 ProxyStatement, definitive 2006 Proxy Statement (when it is filed andbecomes available), BASF's Tender Offer Statement and other documentsfiled by Engelhard or BASF with the SEC at the SEC's website athttp://www.sec.gov. In addition, investors and security holders mayobtain a free copy of each of the Schedule 14D-9, 2005 ProxyStatement, definitive 2006 Proxy Statement (when it is filed andbecomes available), Engelhard's Tender Offer Statement, as well asEngelhard's related filings with the SEC, from Engelhard by directinga request to Engelhard Corporation, 101 Wood Avenue, Iselin, NewJersey 08830, Attention: Investor Relations or at 732-205-5000, orfrom MacKenzie Partners, Inc. by calling 1-800-322-2885 toll free orat 1-212-929-5500 collect or by e-mail atEngelhard@mackenziepartners.com.