SOUTHFIELD, Mich.–(EMWNews)–Detrex Corporation (Pink Sheets:DTRX), a diversified manufacturer of PVC

and CPVC pipe, duct and shapes and specialty chemicals including

lubricant additives and high purity hydrochloric acid, today announced

second quarter pre-tax income from continuing operations of $1,034,416

compared to pre-tax income from continuing operations of $837,370 in the

same period last year. On a year-to-date basis, pre-tax income from

continuing operations was $1,948,832 compared to $1,820,086 for the

first six months of the prior year.

Net income for the second quarter of 2008 was $568,930, or $0.35 per

fully diluted share, compared to net income of $460,553, or $0.28 per

fully diluted share, in the second quarter of last year. Year-to-date

net income was $1,071,857, or $0.67 per fully diluted share, compared to

$1,001,047, or $0.62 per fully diluted share, in 2007.

Second quarter net sales increased 22.6% to $27.5 million from $22.5

million in the comparable period last year. On a year-to-date basis,

sales were $52.2 million, an increase of $5.4 million or 11.5% compared

to the prior year. The second quarter and year-to-date increase in sales

was the result of gains in both of the corporation’s

subsidiaries, the Elco Corporation and Harvel Plastics, Inc. Sales and

earnings for the Elco Corporation in the second quarter and year-to-date

were ahead of the corresponding periods in the prior year due to strong

export sales and increased sales of higher value product to existing

domestic customers combined with several new domestic accounts. Harvel’s

sales in the second quarter were 26% above the same period in the prior

year due to the successful introduction of a new product line, strong

export sales, higher prices, and continued strength in industrial and

commercial construction markets. Second quarter earnings were also above

the prior year, however year-to-date earnings were below year-ago levels

due to lower margins. Both companies are experiencing margin pressure

due to significantly higher costs for most raw materials; where

possible, manufacturing cost reductions and selling price increases are

being implemented. Overall, gross margin increased slightly both for the

quarter and year-to-date compared to the same periods in 2007; however,

the gross margin expressed as a percentage of sales declined in both due

to raw material cost increases. Selling, general and administrative

expenses were higher than year ago levels primarily due to sales and

performance-based incentive accruals; reduced interest expenses,

resulting from lower interest rates, contributed to the year-over-year

improvement in earnings.

Commenting on the Company’s results, President

and CEO Tom Mark said, “We are pleased with

the performance of both businesses in this challenging economic

environment. Fortunately our sales performance is strong which helps to

offset the adverse impact of significant raw material cost escalation.

We will continue to aggressively seek opportunities and adapt to

changing market conditions in order to sustain the current performance.

This performance is essential to our ability to invest in and grow the

businesses while working down the legacy liabilities.”

Statements included in this press release that are not historical in

nature are “forward-looking statements”

within the meaning of the Private Securities Litigation Reform Act of

1995 (the “1995 Act”).

The words “believe,”

“expect,” “anticipate,”

“estimate,” “guidance,”

“target” and

similar expressions identify forward-looking statements. The Company

cautions readers that forward-looking statements are subject to certain

risks and uncertainties, which could cause actual results to differ

materially from those projected in the forward-looking statements.

Certain risks and uncertainties are identified from time to time in the

Company’s reports. Some factors that could

cause results to differ materially from those projected in the

forward-looking statements include: market conditions, environmental

remediation costs, pension expense and funding requirements, liquidation

value of assets, and marketability of real estate and the market value

and future liquidity of Detrex stock. The Company claims the protection

of the safe harbor for forward-looking statements contained in the 1995

Act.

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