Orica Growth Continues with 7% Lift in Half Year Profit

May 2, 2005

Orica Limited today announced a Net Profit After Tax (NPAT) for the six months to March 31, 2005, of $131 million. This represents an increase of 7% on the corresponding period last year.

Sales revenue was up by 16% and earnings per share is up 8% to 48 cents per share.

The interim dividend has been increased by 9% to a record 25 cents per share, franked at 8 cents per share.

"The Orica growth story continues", said Orica Managing Director and Chief Executive Officer, Mr. Malcolm Broomhead. "A feature was a 16% increase in sales revenue stemming from Orica’s successful growth strategy."

Key elements are:

• Record results in Mining Services and Chemicals reflecting market demand and continued cost focus.
• A highlight is Mining Services North America which has exceeded its target 18% RONA on an annualised basis.
• In Mining Services Australia/Asia, commitment to meeting increased demand from customers for Ammonium Nitrate (AN) has been met by importing AN, adversely impacting margins. This is being addressed by short-term initiatives and in the longer term by the Yarwun expansion which will come on stream towards the end of financial year 2006.
• Orica Consumer Products and Fertilisers (Incitec Pivot Limited) were impacted by adverse market conditions
• In M&A, integration of Bronson & Jacobs, Woods & Woods and Keith Harris and the acquisition of Aluminates Chemicals Group and of 51% of the Andean Chemicals Group of companies in Chile and Peru.
• Increased financial commitment to growth, business development and sustainable productivity improvement projects.

Commenting on the outlook for the Second Half 2005, Mr. Broomhead said he expected further earnings growth compared to the earnings in the corresponding period in the Second Half 2004, the extent of which will be dependent upon rainfall and the global economic environment.

Further information:

Investors: Noel Meehan 03) 9665-7844 / 0413 187 000

Media: Stewart Murrihy 03) 9665-7538 / 0412 675 510

Web site: www.Orica.com