Orica Delivers Significant Earnings Growth

Orica today announced a Net Profit After Tax and Significant Items for the half year ended 31 March 2007 of $210 million, up 71% over the previous half year. Excluding individually Significant Items, Net Profit after Tax was $203 million, up 39% on 2006. Sales revenue increased 4% to $2.7 billion. Cash flow from net operating activities improved by $273 million to $256 million.

The board of directors has declared a 36 cents per share interim dividend, up 10 cents (38%) on the 2006 interim dividend. The interim dividend will be franked at 14 cents per share (39% franking).

Orica’s Managing Director and Chief Executive Officer, Graeme Liebelt, said that the results highlighted the continued growth of Orica’s underlying earnings, particularly in the Mining Services business which delivered a record result and Consumer Products which had an excellent 6 months primarily as a result of increased market share and a slowly improving Australian paint market.

The record result from Mining Services underscores strong trading conditions in the global mining and resource market. We believe this trend will continue as customers in the resources sector strive to increase their volume of output, both from existing and new mines. The improved result in Consumer Products reflects the benefit from investing in enhancing the competitive position of the business over the past 12 months, Mr Liebelt said.

What is also most pleasing is the way in which the significant acquisitions of Dyno and Minova have contributed to the earnings result. The integration of Dyno continues to progress well and synergies are being delivered faster than expected while Minova has made a positive start since joining the group from 1 January 2007.
 
With the ongoing integration of Dyno and now adding Minova to the portfolio, Orica has become the true global leader in the Mining Services business with over 25% market share, which is more than double our nearest competitor.  We now have operations in more than 50 countries and sell into twice that many, allowing the company to benefit from both geographic and market growth opportunities, he said.

Earnings from the Chemical Services division were slightly ahead of last year with the benefit of ongoing market growth in Mining Chemicals offset by a lower contribution from Watercare which was, in part, impacted by the drought.

The performance of Chemnet continues to improve as the benefits from last year’s restructuring program are being progressively delivered. This business division still faces difficult trading conditions in the Australian and New Zealand manufacturing sectors. Chemnet is positioned to meet Orica’s financial returns criteria in the near future.

In addition to the strength of our core earnings and the benefit of the acquired businesses, Orica continues to actively manage its capital base to create a foundation for a period of sustained profit improvement as evidenced by the divestment of the Adhesives and Resins Business in January 2007 Mr Liebelt said.

The outlook for Orica offers strong growth potential as well as a less volatile earnings stream, Mr Liebelt said.

Subject to global economic conditions, we expect group net profit (before significant items) in 2007, to be significantly higher than that reported in 2006, resulting from a full year contribution from the acquired Dyno businesses, benefits from the recently commissioned ammonium nitrate expansion at Yarwun, nine months’ earnings contribution from the Minova acquisition, in addition to improved earnings across the existing businesses.

April 30, 2007

· Contacts:

- Stuart Hutton, Investor Relations Manager: (03) 9665 7844 Mob: 0411 790 164
- John Fetter, Group Manager, Corporate Affairs: (03) 9665 7870 Mob: 0412 311 371

· Web site: www.orica.com