"Our results reflect continued stabilization in performance and market trends. We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters," Chief Executive Officer Robert Benmosche said in a statement, The Washington Post reported Friday.

AIG made gains in the third quarter through partial appreciation of some of the troubled assets that triggered the financial meltdown a year ago when their values sank.

Those assets constituted a major portion of AIG's $61.7 billion loss in the final quarter of 2008 and its $4.35 billion loss in the first quarter of 2009.

www.upi.com

First 9 months of 2009: good operating performance

o Net banking income up 17% to reach a total of 15.1 billion euros o Rise in the loans outstanding position, testifying to the support given to the French economy by Groupe BPCE banks o Net income of -310 million euros, still marked by the crisis and by the exceptional items booked in the accounts

A robust financial structure

o Tier 1 capital at September 30, 2009: 36.1 billion euros o Estimated Tier 1 ratio: 8.8% up from 8.6% at June 30, 2009

On November 12, 2009, the Supervisory Board of BPCE convened a meeting chaired by Philippe Dupont to examine the Group's financial statements for the third quarter of 2009. These financial statements are compared with pro forma figures presenting the Group's financial position at September 30, 2008 as if the merger between Groupe Banque Populaire and Groupe Caisse d'Epargne had already been completed at that date.

François Pérol, Chairman of the Management Board of BPCE, made the following statement:

"In an economic environment that remained uncertain in the third quarter of 2009, Groupe BPCE achieved a fine performance. All the core business lines made a positive contribution to the results of the Group, which has continued to maintain its dynamic in favor of the economic stimulus plan. The growth in revenues enjoyed by the Banque Populaire banks and the Caisses d'Epargne testifies to the resilience of the Group's retail banking business. After five difficult quarters, Natixis has become profitable once again, demonstrating the relevance of the decision to refocus its business activities. These results - to which should be added the substantial contribution made by the Real estate core business - are encouraging both for our personnel and for the future of Groupe BPCE."

Consolidated results of Groupe BPCE: significant improvement

RESULTS FOR THE 3RD QUARTER OF 2009

The third quarter of 2009 saw the birth of Groupe BPCE on July 31, 2009. Against a background marked by a continued adverse economic environment on the one hand and an improvement in the capital markets on the other, Groupe BPCE achieved an improved operating performance in the third quarter of the year in all three of its core business lines: Retail banking, Corporate & investment banking, asset management and financial services (Natixis), and the different activities of the Real estate industry. The result is a net profit (Group's share) of 447 million euros, marking the Group's return to profitability.

The Group's net banking income stands at 5,429 million euros for the third quarter, representing growth of 25%. The net banking income of the Group's three core business lines stands at an aggregate 5,275 million euros, an increase of 10%.

- Retail banking accounts for 64% of the net banking income generated by the three core business lines in the first half of the year with a total of 3,345 million euros. The banking institutions in the Banque Populaire and Caisse d'Epargne networks are now enjoying the fruit of their commercial dynamism with revenues of 3,063 million euros up from 2,251 million euros in the third quarter of 2008, a period impacted by the effects of the financial crisis.

- The Corporate & investment banking, asset management and financial services (Natixis) division, with 1,292 million euros, accounts for 24% of the net banking income generated by the core business lines of Groupe BPCE.

- Real estate services account for 12% of the net banking income generated by the Group's core business lines with a total of 638 million euros, up from 556 million euros in the third quarter of 2008 (up 15%). This improvement reflects the rebound in the real estate market noted in the third quarter of 2009 driven by the decline in interest rates and the different support measures (the PASS-foncier scheme for new home ownership, a doubling of the PTZ interest-free loans, the so-called Scellier provisions to encourage investment in rental property) and the decline in interest rates.
Operating expenses have risen 4% to 3,961 million euros; this total includes the non-recurring expenses incurred by the creation of the new BPCE central institution. The operating expenses of the core business lines - which remain stable at 3,724 million euros - reflect the cost-cutting drive pursued by the Group's different companies. In the Retail banking segment, the increase in expenses has been kept to just 2% and the cost/income ratio shows an 11-point improvement at 67.4%.

Gross operating income stands at 1,468 million euros against 527 million euros in the third quarter of 2008. The gross operating income generated by the core business lines has increased by 43%, to 1,551 million euros.

The cost of risk remains high (588 million euros) but has fallen from the level noted in the third quarter of 2008. During the period, Groupe BPCE suffered an increase in the cost of customer risk while simultaneously benefiting from a reduction in the negative impacts related to the valuation of the financial portfolios of the Banque Populaire banks and Caisses d'Epargne.

Net income (Group's share) has moved out of the red and now stands at a positive 447 million euros.

RESULTS FOR THE FIRST 9 MONTHS OF 2009

The results of Groupe BPCE for the first nine months of 2009 are marked by the effect of the economic crisis, notably by the increase in the cost of risk related to the deterioration in the economic environment and to the booking of additional provisions with respect to the loan portfolios. The results were also depressed by a number of exceptional entries, notably the impairment of goodwill aimed at bringing the valuation of assets into line with the market environment. Overall, Groupe BPCE reports a net loss of 310 million euros.

In the first nine months of 2009, the Group's net banking income reached a total of 15.1 billion euros, representing 17% growth compared with the first nine months of 2008. Gross operating income stands at 3.1 billion euros.

As far as the Group's core business lines are concerned, net banking income remains stable at 15.3 billion euros. This stability reflects the enduring resilience of the Retail banking division in an uncertain economic environment, notably during the first half of 2009.

The operating expenses of the core businesses are stable at 11.6 billion euros. In contrast, however, the cost of risk - at 2.5 billion euros - has doubled compared with the same period in 2008 in view of the effects of the economic crisis on the retail banking activity and the substantial provisions booked by Natixis during the first half of the year following the review of its loan portfolios.

The gross operating income of the core business lines has risen 6% to 3.8 billion euros, reflecting the good operating performance of the Group's business activities.

The operating income generated by the core business lines has fallen by 46%, to 1.2 billion euros.

CONSOLIDATED RESULTS OF GROUPE BPCE

+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|     in millions of euros   |  Q3 2009|  O/w business lines|  Q3 2008|  O/w business lines|  % change business lines|  9M 2009|  9M 2008|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|  Net banking income        |    5,429|               5,275|    4,344|               4,812|                     +10%|   15,128|   12,880|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|  Operating expenses        |   -3,961|              -3,724|   -3,816|              -3,732|                        =|  -12,007|  -11,979|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|  Gross operating income    |    1,468|               1,551|      527|               1,080|                     +43%|    3,121|      901|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|  Cost of risk              |     -588|                -590|     -781|                -660|                     -11%|   -3,578|  - 1,528|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|  Operating income          |      880|                 962|     -253|                 420|                    X 2.3|     -457|     -627|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|                            |         |                    |         |                    |                         |         |         |
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+
|  Net income (Group's share)|      447|                    |     -960|                    |                         |     -310|     -969|
+----------------------------+---------+--------------------+---------+--------------------+-------------------------+---------+---------+

FINANCIAL STRUCTURE OF GROUPE BPCE

At September 30, 2009, the Group's Tier 1 capital stood at 36.1 billion euros.

Risk-weighted assets amounted to 408 billion euros at September 30, 2009. 51% of these assets are concentrated in the Retail banking segment.

At September 30, 2009, the estimated Tier 1 capital ratio of Groupe BPCE stood at 8.8%. This ratio does not include capital of 1.3 billion euros obtained from the issue of cooperative shares carried out by the Caisses d'Epargne at September 30, 2009; the Caisses d'Epargne should further reinforce their shareholders' equity by proceeding with a capital increase before the end of the year.

Groupe BPCE enjoys long-term ratings of Aa3 granted by Moody's and A+ granted by Standard & Poor's and Fitch; all these ratings are accompanied by a stable outlook.

RETAIL BANKING: MOBILIZATION IN FAVOR OF THE ECONOMIC STIMULUS PLAN

The two retail networks have continued their mobilization in favor of measures taken to finance the economy in accordance with the commitments made to the French government in October 2008. Groupe BPCE boasted 3.3%[1] growth in outstandings at the end of September 2009, a level significantly higher that the average growth of the loans outstanding position achieved by the financial institutions that signed the agreement with the French government in October last year. In the individual customer market and the SME/micro-enterprise segment, where the Group enjoys strong positions, the loans outstanding position increased by 5%.

The Groupe has undertaken to maintain a 3.5% annual rate of growth for its loan book for 2009 as a whole. The different actions taken by Groupe BPCE in favor of the French economy include: - An allocation of loans to local authorities for a total of 3 billion euros arranged by the Caisses d'Epargne, - A monthly envelope of 1 billion euros in favor of SMEs opened by the Banque Populaire banks, - An increase to a total of 1.8 billion euros of new loans granted by the Caisses d'Epargne in favor of social housing operators in 2009.

o Banque Populaire network

The Banque Populaire network includes 20 Banque Populaire banks, Crédit Maritime Mutuel and the Mutual Guarantee Companies.

The Banque Populaire network confirmed its ability to withstand the economic crisis, its commercial dynamism and its power of attraction during the first nine months of 2009. The number of individual customers increased by a total of 27,000 and the number of business customers rose by 4% compared with the first nine months of 2008.

- Savings deposits

Savings deposits stand at 176 billion euros, representing 8% growth compared with September 30, 2008.

In the individual customer market segment, on-balance sheet savings have continued to grow at a rate of 4%, chiefly thanks to deposits on Livret A passbook accounts (3 billion euros). The decline in interest rates paid on regulated savings products, adopted on February 1, 2009 and reduced still further on May 1, 2009, has also encouraged savers to move their funds to risk-free products offering higher rates of return with long-term investment horizons. As a result, life funds have risen by 11% (37 billion euros). Growth in demand deposits stands at 8%.

In the corporate customer segment, deposits held on term accounts have grown by 34%. Deposits in employee savings schemes have grown by 10%. Over the period, the number of employee savings contracts rose by 19%.

- Loans outstanding

Outstanding loans granted by the Banque Populaire network have increased by 3% compared with September 30, 2008 to reach a total of 138 billion euros.

Outstanding home loans and equipment loans have increased by 4% compared with September 30, 2008.

A partner of the principal networks of organizations offering support to new business creators, the Banque Populaire network is maintaining its position as the leading distributor of New Business Creation Loans (Prêts à la Création d'Entreprise or PCE) with an estimated market share of 27.5% at the end of September 2009.

- Financial results

For the 9-month period ended September 30, 2009, net banking income rose 7% to reach a total of 4,354 million euros driven by the combined effect of significant growth in the interest margin and the leveling off of commissions. If provisions for home purchase savings schemes are excluded, growth in net banking income stands at 5% on a like-for-like basis.

Operating expenses amount to 2,934 million euros, representing an increase of 1.1% on a like-for-like basis. The cost/income ratio stands at 67% on a like-for-like basis, reflecting a 1.8-point improvement compared with the first nine months of 2008. The gross operating income generated by the Banque Populaire network stands at 1,420 million euros over the period.

In view of the increase in company bankruptcies in an uncertain economic environment, the cost of risk totals 506 million euros, up from 342 million euros at September 30, 2008. Stable compared with June 30, 2009, the cost of risk stands at 49 basis points[2] .

The operating income generated by the Banque Populaire network over the first nine months of 2009 remains stable at 914 million euros.

o Caisse d'Epargne network

The Caisse d'Epargne network includes 17 Caisses d'Epargne.

In a business environment marked by the economic crisis and the deregulation of the Livret A passbook savings accounts, the Caisses d'Epargne have demonstrated their high degree of commercial dynamism.

- Savings deposits

The negative impact of the deregulation of the distribution of Livret A passbook accounts, effective January 1, 2009, and the decline in its interest rate were offset by the network's high degree of commercial dynamism. Despite the 1% decline in deposits held on Livret A passbook accounts in the space of one year, the aggregate savings deposits of the Caisse d'Epargne network rose 2% compared with September 30, 2008, to reach a total of 327 billion euros.

New savings deposits (excluding Livret A) enjoyed 61% growth over the period, chiefly driven by the success of life insurance products for which new fund inflows have increased by 51% in one year to a total of 3.4 billion euros.

During the period, average funds on demand deposit accounts rose by 4% for the Retail banking segment, and by 9.5% for the Regional development banking sector. In the demand deposit account segment, the Caisse d'Epargne network boasts a market share of 8.7% in France.

The Caisse d'Epargne network has also pursued its policy aimed at attracting new customers; the increase in the number of active customers receiving banking services in the market for self-employed professionals now stands at 5%, 2% in the individual customer segment and 11% for corporate customers.

- Loans outstanding

With 5% growth in the loans outstanding position to 132 billion euros compared with September 30, 2008, the Caisses d'Epargne confirm their determination to pursue their commitment to help finance the French economy.

Home loans outstanding have increased slightly, totaling 78 billion euros at September 30, 2009. Equipment loans represent a total of 35 billion euros.

In the third quarter of 2009, loan commitments increased in all sectors. More particularly, the Caisses d'Epargne have outperformed the market in the area of consumer financing; the production of new consumer loans in the first nine months of the year represent a total of 4.3 billion euros, up 3%. The Caisse d'Epargne network retains it position as the 2nd largest distributor of consumer credit solutions (excluding specialized institutions) with a market share of 7.3%.

- Financial results

Under the combined impact of an increase in average outstandings for all loans, the decline in the refinancing rate, and the effects of the reduction of the financial portfolios, net banking income stands at 4,456 million euros, equal to growth of 20% over the first nine months of 2009. If provisions booked for home purchase savings schemes are excluded, the increase in net banking income amounts to 24%. Commissions earned on loans, up 16%, and commissions related to banking services (up 3%) offset the decline in commissions earned on financial savings products and centralized savings products.

Operating expenses remain stable at 3,262 million euros. The cost/income ratio is 73.2%.

The gross operating income of the Caisse d'Epargne network comes to a total of 1,194 million euros, the result of an extremely significant improvement in the network's operating performance.

The cost of risk stands at 220 million euros against 180 million euros one year earlier. This 40-million euro increase compared with September 30, 2008 reflects an increase in the cost of customer risk offset, in part, by the reduction in the impact of the crisis on the financial portfolios. Stable compared with June 30, 2009, the cost of risk stands at 22 basis points[3].

The operating income generated by the Caisse d'Epargne network during the first nine months of the year has been multiplied by a factor of three and now stands at 974 million euros.

CORPORATE & INVESTMENT BANKING, ASSET MANAGEMENT AND FINANCIAL SERVICES[4]

The third quarter of 2009 marks a return to profitability for Natixis and for the three divisions that comprise its core business activity.

Corporate & investment banking, asset management and financial services contributed 1,292 million euros and 261 million euros respectively to the net banking income and gross operating income of Groupe BPCE for the third quarter of 2009.

During the first nine months of 2009, the contribution of Corporate & investment banking, asset management and financial services were 3.9 billion euros and 541 million euros respectively to the net banking income and gross operating income of the Group.

REAL ESTATE CORE BUSINESS LINE: RESILIENCE DESPITE THE DOWNTURN IN THE BUSINESS CYCLE

The real estate division is chiefly comprised of the activities pursued by Crédit Foncier, Foncia and Nexity in addition to other businesses such as GCE Habitat, Maisons France Confort and Meilleurtaux. They allow Groupe BPCE to play a major role in the real estate industry, present at every level and in every area of real estate services, providing financing solutions for individual customers, companies, the local authorities and social housing.

The net banking income of the real estate division for the first nine months of the year amounts to 1,764 million euros, representing a decline of only 6% compared with the first nine months of last year in an adverse economic climate for the industry as a whole.

o Crédit Foncier

During the first 9 months of the year, the net banking income generated by this financial institution specializing in the financing of real estate projects remained stable at 753 million euros (as a contribution to BPCE) under the impact of a decline in business triggered by the adverse economic environment offset, however, by a significant increase in margins.

In the market for home loans granted to individual customers, Crédit Foncier enjoyed a period of sustained business activity thanks, in particular, to its significant involvement in the measures adopted to stimulate the French economy (doubling of interest-free loans, extension of the ceilings on PAS loans to facilitate home-ownership for low-income families, development of the PASS-foncier scheme for new home ownership, etc.). As a result, Crédit Foncier has increased its market share in the area of interest-free loans and PAS loans to 24% and 36.5% respectively. All it all, its market share is in the region of 8%, a level not achieved for more than 10 years.

o Real estate services: Foncia and Nexity

- Foncia

The leader in residential real estate transactions and management services in France saw its revenues grow by 3% in the first 9 months of the year to reach a total of 407 million euros. This performance demonstrates the resilience of the business model adopted by Foncia chiefly based on the recurrent activities of rental property and condominium management services.

The number of sales - which had been declining for the past 2 years - recovered in the third quarter of 2009 with an increase of 14% in the space of one year. During the 9-month period, almost 8,000 sales were concluded thereby making up for the shortfall experienced in the first half of 2009.

- Nexity

The Nexity Group, the leading French player in private real estate development, recorded revenues of 1.96 billion euros during the first 9 months of 2009, a result that remains stable compared with the same period in 2008.

The Group's commercial activities show a significant rise in its residential accommodation business compared with the first 9 months of 2008. Reservations for new housing units have increased by 40% compared with the same period last year. The order book totaled 2.8 billion euros at the end of September and represented almost 16 months' revenue generated by the real estate development activities.

ACTIVITIES MANAGED ON A RUN-OFF BASIS AND OTHER BUSINESSES

The activities managed on a run-off basis reflect the contribution of the GAPC[5] of Natixis and the proprietary trading activities of Caisse d'Epargne Participations.

The impact of the activities managed on a run-off basis declined significantly in the third quarter. Net banking income stands at 154 million euros.

The guarantee granted by BPCE in favor of Natixis was adopted with effect retroactive to July 1, 2009. The impact of the guarantee on the results of Group BPCE in the third quarter of this year is of marginal importance.

CONCLUSION

Regarding its commercial activities, Groupe BPCE enjoyed an increase in its customer base, especially in the retail banking sector, in a business environment that still offers little visibility. Created on July 31, 2009, Groupe BPCE is now in marching order. The strategic plan is progressing in line with the timetable initially fixed and will be presented at the beginning of 2010.

The results of the third quarter of 2009, which mark the Group's return to profitability, testify to the operational efficiency of its core business lines.

About Groupe BPCE: Groupe BPCE, the 2nd-largest banking group in France, includes two independent and complementary retail-banking networks: the network of 20 Banque Populaire banks and the network of 17 Caisses d'Epargne. It is a major player both in corporate & investment banking, asset management and financial services with Natixis, and in the real estate market with Crédit Foncier, Foncia and Nexity. Groupe BPCE serves more than 37 million customers and enjoys a strong presence in France with 8,200 branches, 127,000 employees and more than 7 million cooperative shareholders.

[1] Source: Banque de France [2] Cost of risk related to customer credit activities compared with estimated average Basel I credit risk-weighted assets [3] Cost of risk related to customer credit activities compared with estimated average Basel I credit risk-weighted assets [4] The results of Natixis are presented in a detailed press release published separately [5] GAPC: Gestion Active des Portefeuilles Cantonnés, or workout portfolio management

BPCE Press Contacts Thierry Martinez: 33-1 58 40 43 13 Jean-Baptiste Froville: 33-1 58 40 40 77 Sonia Dilouya: 33-1 58 40 58 57 Email: presse@bpce.fr www.bpce.fr

BPCE Investor Relations Roland Charbonnel: 33-1 58 40 69 30 Evelyne Etcheverry: 33-1 58 40 57 46 Email: investor.relations@bpce.fr

Copyright Hugin

The appendixes relating to the press release are available on: http://www.hugingroup.com/documents_ir/PJ/CO/2009/160393_67_Z17G_BPCE-3T09-v1111--gb.pdf

Information réglementée : Type : Nouvelle information Thème(s): Communiqués au titre de l'obligation d'information permanente - Communiqué sur comptes, résultats, chiffres d'affaires

This announcement is originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

[CN#160393]

- Guangzhou-based property developer Evergrande Real Estate Group (SEHK: 3333) made a strong debut on the Hong Kong stock exchange yesterday, with its shares jumping 34.3 per cent above their offer price of HK$3.50.

- Shareholders in former Beijing Olympics caterer Fu Ji Food and Catering Services Holdings (SEHK: 1175), which went into provisional liquidation last month, are likely to lose everything, judging by the secondary market price of the company's bonds.

- A Hong Kong court yesterday issued an arrest warrant for Michael Tang Yan-tian for failure to appear in court to face charges of insider dealing.

- Warren Buffett's Midas touch has catapulted Wang Chuanfu to the top of China's rich list, as the BYD chairman's net worth has jumped more than fivefold over the past year, thanks to the US investment guru's HK$1.8 billion purchase of a stake in the car and battery maker.

- The United States and the European Union have asked the World Trade Organisation to investigate China's taxes on exports of raw materials used in the metals and chemical industries, escalating a third joint complaint against the mainland.

- Financially strapped Japan Airlines (JAL) will close offices in three mainland cities next month and cut international routes, a week after Tokyo unveiled a bailout plan for the carrier.

- State-owned Wuhan Iron and Steel Group has been cleared to invest A$271 million (HK$1.9 billion) in Australian iron ore developer Centrex Metals despite ongoing uncertainty surrounding the guidelines for Chinese investments.

- Lenovo Group (SEHK: 0992) sees better days ahead, including a possible listing of its shares on the mainland, after doubling net profit year on year in the third quarter on growth in key markets and its restructuring efforts.

THE STANDARD:

- Evergrande Real Estate (3333) thrilled the market yesterday with the most spectacular debut of a property IPO this year.

- Developers have stepped up calls on the government to increase land supply, despite property shares coming under pressure over concerns the administration will act to cool soaring flat prices.

- China Everbright International (0257) is among stocks that has outperformed the Hang Seng Index.

- Strong economic growth and rebounding stock markets are creating more tycoons in the mainland, which now has a record 79 billionaires, up from 24 last year, according to Forbes magazine.

- SJM Holdings (0880) said it continues to be the gaming leader in Macau, with its market share by revenue expanding to 30.9 percent in October.

- Lenovo Group (0992) turned in its first quarterly profit in a year thanks to cost controls and strong growth in the mainland.

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- Maintains EBITDA Margin - 16.6% (Excluding Non-Recurring Expenses)

- Frutarom's Sales in the Third Quarter - US$ 111.6 M

- The Company's revenues in the quarter and in the first nine
      months of the year were mainly affected by the following factors:

        - material revaluation in the US dollar rate compared to the
          European currencies and the NIS, in which most of the Company's
          sales are made

        - the moderating effects of the global economic crisis and the
          slowdown in the markets

        - the trend of destocking which ended during the third quarter

    - The company estimates that it maintained its market share
      among its customers

    - Frutarom maintains the operating margin in the quarter which
      reached 12.1% compared to 12.5% in the same quarter last year and the
      EBITDA margin rate of 16.6% (excluding non-recurring expenses)

    - Net margin improved reaching 9.0% compared to 7.9% in the
      same period last year

    - Margins were maintained In spite of the decline in sales,
      due to the actions regularly taken by Frutarom, and in more focused and
      profound way this year, for further reduction of expenses and achieving
      maximum efficiencies while improving its competitiveness. Concurrently,
      Frutarom continues to strengthen its R&D and sales infrastructures to
      ensure its further profitable growth

    - Positive cash flow from current activities: In the quarter -
      US$ 27.5 M compared to US$ 12.6 M in the third quarter of 2008; in the
      first nine months - US$ 57.9 M compared to US$ 21.2 M in 2008

HAIFA, Israel, November 24 /PRNewswire/ --

Frutarom (LSE: FRUT, TASE: FRUT, OTC: FRUTF, OTC: FRUTF.PK) the seventh largest company in the field of flavors and specialty fine ingredients, today presented its results for the third quarter of 2009.

Frutarom sales in the third quarter of 2009 totaled US$ 111.6 M, a decrease of approximately 1.6% in local currency terms compared to the third quarter of 2008. The strengthening of the US$ compared to most of the European currencies and the NIS (in which most of Frutarom's sales are implemented) caused a decrease of 5.4% in sales. Therefore, in US$ terms, the sales in the third quarter of the year decreased by 7.0% compared to the third quarter last year. Frutarom's sales in the first nine months of the year reached US$ 316.7 M, a decrease of approximately 4.3% in local currency terms compared to the first nine months of 2008. The strengthening of the US$ compared to most of the European currencies and the NIS caused a decrease in sales in the first nine months of the year at a rate of approximately 11.2%. Therefore, in US$ terms, the sales decreased by 15.5% compared to the first nine months of 2008. The revaluation in the US$ rate compared to the European currencies and the NIS seems to come to an end towards the end of the quarter and has reversed as from October. Should this trend continue, Frutarom is expected to be positively affected starting the fourth quarter this year.

The sales in the quarter and in the first nine months of the year were also affected by the continuation of the global crisis and the economic slowdown in the world, which temporarily changed the growth trend which characterized most of the global markets in recent years and the business environment in which Frutarom operates. As a result of the crisis, many customers vigorously act to reduce their inventory levels - this trend becomes more and more moderate and Frutarom estimates that it came to an end during the third quarter this year. In addition, a decrease in the trade and marketing activity in Israel (an activity which is not one of Frutarom's core activities) which partly results from focusing on products with higher profit margins, contributed approximately 2% to the decrease in sales.

Frutarom estimates that it maintained its market share among its customers and the stabilization of the global economy in recent months, the moderation in the fluctuations of currencies, the halt of the destocking trend and the signs of gradual improvement in consumption, including in countries significantly affected by the devaluation of their currency, will contribute to an improvement in its sales level and to future return to growth trend at rates similar to those characterizing its activities in the past.

In accordance with its strategic plan, after Frutarom focused during 2008 on the integration and utilization of the many synergies from the seven acquisitions made in 2007 Frutarom resumed its acquisitions strategy in 2009 and has already implemented three successful strategic acquisitions: Oxford in the UK, FSI in the US and the Savory activity of Christian Hansen (CH) in Germany. The three acquisitions implemented during the first half of the year contributed to the sales in the third quarter approximately US$ 8.1 M and contributed to the sales of the first nine months of the year approximately US$ 17.2 M. Frutarom estimates that its strong cash flow, its solid capital structure and strong support from leading banks will enable it to implement additional strategic acquisitions and exploit opportunities created and which will be created as a result of the global economic crisis.

Gross profit in the third quarter of 2009 totaled US$ 41.2 M compared to US$ 45.3 M in the same quarter last year. The decline in gross profit is a result of the reduction in sales. Gross margin in the quarter totaled 37.0% compared to 37.7% in the same period in 2008. Gross margin rate was achieved in spite of a decline in sales thanks to the actions taken by Frutarom to reduce and tightly command and control the expense level.

Excluding non-recurring costs (in the amount of approximately US$ 0.2 M) for a restructuring plan in the Company's activities in UK due to the acquisition of Oxford, the operating profit in the third quarter totaled US$ 13.5 M compared to US$ 15.0 M in the same period of 2008 and operating margin reached 12.1% compared to 12.5% in the same period.

Excluding the aforementioned non-recurring effects, EBITDA achieved by Frutarom in the third quarter of 2009 totaled US$ 18.5 M which comprise 16.6% of sales compared to EBITDA of US$ 20.0 M which also comprise 16.6% of sales in the third quarter of 2008.

Net profit in the third quarter of 2009 increased by 6.3% and totaled US$ 10.0 M compared to US$ 9.4 M in the same period last year. Net margin improved and reached 9% compared to 7.9% in the same period.

During the first nine months of the year, non-recurring costs in the amount of US$ 1.3 for the restructuring plan in the Company's activities in Germany and in UK mainly due to the acquisition of the Savory activity of CH and of Oxford were recorded compared with non-recurring revenues in the same period last year, in the amount of US$ 0.9. The total non-recurring effects in the first nine months of the year were US$ 2.2 M net. Excluding the aforementioned non-recurring effects, the EBITDA Frutarom achieved in the first nine months of 2009 totaled US$ 51.5 M which comprise 16.3% of sales compared to US$ 63.0 M which comprise 16.8% of sales in the first nine months of 2008.

Excluding the aforementioned non-recurring effects, net profit in the first nine months of 2009 totaled US$ 26.7 M compared to US$ 30.4 M in the same period. Net margin improved and reached 8.4% compared to 8.1% last year.

During the third quarter of 2009, Frutarom continued to improve its cash flow from current activities, which reached US$ 27.5 M compared to a cash flow of US$ 12.6 M achieved during the third quarter of 2008. In the first nine months of 2009, Frutarom generated a record cash flow from current activities in the amount of US$ 57.9 M compared to US$ 21.2 M in the same period last year. The strong cash flow achieved by Frutarom enabled the reduction of the level of its bank debt, in spite of the three acquisitions it has already implemented this year and will enable it, together with a bank support, to continue and implement additional strategic acquisitions.

Ori Yehudai summed up and stated: "The global crisis changed the growth trend which characterized most of the global markets in recent years. Frutarom entered this challenging and crisis-related period as a leading and strong global company, with a solid capital structure and an experienced global management. Since the breakout of the global economic crisis, Frutarom deepened its focus and decisively acted to strengthen its competitiveness and to improve its operational efficiency while tightly reducing and controlling its expense level. Concurrently, we continue to strengthen our R&D and sales infrastructures to ensure the continuation of our profitable growth. Our rapid alignment toward the global economic situation enabled us to maintain our operating and EBITDA margins and to improve our net margin in spite of the slowdown in the markets. We estimate that the stabilization of the global economy in recent months, the moderation in currencies fluctuations, the halt of the destocking trend and the signs of gradual improvement in consumption, including in countries significantly affected by the devaluation in their currency, will contribute to an improvement in our sales level and to future return to a growth trend at rates similar to those characterizing our activities in the past.

We will continue decisively to act to implement our rapid growth strategy which integrates organic growth and strategic acquisitions. In 2009 we have already implemented three successful strategic acquisitions which support the further expansion of our global deployment, our customer base throughout the world and our product portfolio. The excellent cash flow we achieve, our solid capital structure and strong support from leading financial institutions will enable us to continue with our acquisition strategy and to exploit opportunities created and which will be created as a result of the global economic crisis. We are convinced that we will be able to achieve our target and to again double Frtuarom's sales turnover in the next 4 years, to approximately US$ 1 billion".

About the Company

Frutarom is a global company active in the world markets for flavors and ingredients. Frutarom has significant production and development centers on three continents and markets its products on five continents to over 13,000 customers in more than 120 countries. Frutarom's products are intended mainly for the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, health food, functional food, food additive, and cosmetic industries.

Frutarom, which employs approximately 1,440 people worldwide, operates through two Divisions:

- The Flavors Division, which develops, produces and markets
      flavor compounds and food systems.

    - The Fine Ingredients Division, which develops, produces and
      markets natural flavor extracts, natural functional food ingredients,
      natural pharma/nutraceutical extracts, specialty essential oils and
      citrus products, and aroma chemicals.

Frutarom's products are produced at its plants in the United States, England, Switzerland, Germany, Israel, China, and Turkey. The Company's global marketing organization includes branches in Israel, the United States, England, Switzerland, Germany, Belgium, Holland, Denmark, France, Hungary, Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, China, Japan, Hong Kong, India and Indonesia. The Company also works through local agents and distributors worldwide.

For further information, visit our website: http://www.frutarom.com.

Company Contact:
    Ori Yehudai, President & CEO
    Frutarom Ltd.
    Tel: +972-99603800
    Email: oyehudai@frutarom.com

Company Contact: Ori Yehudai, President & CEO, Frutarom Ltd., Tel:
+972-99603800, Email: oyehudai@frutarom.com .

F. William Weber, Webco's Chairman and Chief Executive Officer, commented, "Webco addressed the challenges presented by the global economic crisis early and swiftly. The dedication of our employees and plans implemented by management resulted in our being able to put the challenge of high priced material and lower volumes behind us as quickly as possible. Simultaneously, the Company endeavored to substantially reduce debt and create the liquidity necessary for the current environment. At the end of the current quarter, Webco's outstanding debt was $38.9 million. That is a reduction of $53.6 million from the $92.5 million of outstanding debt just one year ago."

Mr. Weber further added, "Our current profitability does not mean that the global economic crisis is over. The residual effect of high priced inventories will continue to negatively impact margins in future quarters, although to a lesser extent. However, our financial health has placed us in a position to pursue strategic organic growth investments over the next several quarters, which we will do without sacrificing the quality of our balance sheet. Our focus remains on our long-term niche strategy, which we believe is appropriate even in this difficult economic environment."

Gross profit for the first quarter of fiscal 2010 was $6.2 million, or 9.1 percent of net sales, compared to $16.5 million, or 14.9 percent of net sales, for the first quarter of fiscal 2009. The current quarter's gross profit percentage is up from the 1.5 percent of sales realized in the immediately preceding fourth quarter. The current quarter gross profit was negatively impacted by selling high cost inventories, while the first quarter of fiscal year 2009 endured $2.8 million in charges for inventory reserves that resulted from the declines in steel costs and margins.

Selling, general and administrative expenses in the first quarter of fiscal 2010 were $3.8 million, compared to $6.5 million in the first quarter of the prior year. SG&A expenses remain at low levels due to cost reductions and lower employee profit sharing and bonuses related to current financial performance.

Interest expense was $1.0 million and $0.9 million in the current and prior year quarter, respectively. In the spring of 2008, the Company entered into a five-year swap arrangement that changed the variable interest rate for $75 million of the Company's debt to a fixed rate, concluding that the fixed rates available for that period were preferred to the exposure to significant interest rate increases in the future. The global economic crisis that began in October 2008 has resulted in significant decreases in interest rates and therefore current rates are less than the swapped rates. Because of significant debt reductions, the $75 million swap exceeds the outstanding long-term debt on which the interest rate was swapped. The Company records such interest rate swap contracts at fair market value, charging current earnings for changes in the value of the contracts. Monthly swap settlements, which began in November 2008, are recorded as interest expense and amounted to $0.7 million in the current quarter. During the first quarter of fiscal year 2010 and 2009, fair value adjustments resulted in non-cash charges of $0.7 million and $1.3 million, respectively. At October 31, 2009, the Company had a liability of $5.1 million related to the negative fair value of the interest rate swap contracts. Changes in Treasury yields over the swap period can have a significant impact on the valuation of the interest rate swap contracts.

Capital spending amounted to $0.3 million for the first quarter of fiscal 2010. We expect capital spending for fiscal year 2010 to be in the range of $6 million to $7 million.

Webco is a manufacturer and value added distributor of high-quality carbon steel, stainless steel and other metal tubular products designed to industry and customer specifications. Webco's tubing products consist primarily of pressure tubing and specialty tubing for use in durable and capital goods. Webco's long-term strategy involves the pursuit of niche markets within the metal tubing industry through the deployment of leading-edge manufacturing and information technology. Webco has five production facilities in Oklahoma and Pennsylvania and five value-added distribution facilities in Oklahoma, Texas, Illinois and Michigan, serving more than 1,000 customers throughout North America.

Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "believes," "can," "considering," "expects," "hopes," "plans," "pursuing," "should," "would," or similar words constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied herein. Such risks, uncertainties and factors include the factors discussed above and, among others: general economic and business conditions, including the continuing global recession and disruptions in the global credit markets, competition from imports, changes in manufacturing technology, banking environment, including availability of adequate financing, monetary policy, raw material costs and availability, industry capacity, domestic competition, loss of significant customers and customer work stoppages, customer claims, technical and data processing capabilities, and insurance costs and availability. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

WEBCO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
                                             Three Months Ended
                                             October 31,
                                             2009            2008
Net sales                                    $     68,031    $     110,642
Cost of sales                                      61,845          94,163
Gross profit                                       6,186           16,479
Selling, general & administrative                  3,805           6,511
Income from operations                             2,381           9,968
Interest expense                                   960             918
Unrealized loss on interest contract               695             1,278
Income before income taxes                         726             7,772
Income tax expense                                 224             2,689
Net income                                   $     502       $     5,083
Net income per common share:
Basic                                        $     0.66      $     6.68
Diluted                                      $     0.66      $     6.65
Weighted average common shares outstanding:
Basic                                              763,000         761,000
Diluted                                            765,000         764,000

WEBCO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Dollars in thousands)
(Unaudited)
                                   October 31,     July 31,
                                   2009            2009
Accounts receivable, net           $     29,991    $    21,156
Inventories, net                         80,932         91,322
Other current assets                     8,775          9,383
Total current assets                     119,698        121,861
Net property, plant and equipment        61,785         63,387
Other long-term assets                   4,771          4,836
Total assets                       $     186,254   $    190,084
Other current liabilities          $     26,634    $    24,815
Current portion of long-term debt        30,177         36,182
Total current liabilities                56,811         60,997
Long-term debt                           8,750          8,750
Deferred income tax liability            11,815         12,094
Total equity                             108,878        108,243
Total liabilities and equity       $     186,254   $    190,084

CASH FLOW DATA
(Dollars in thousands)
(Unaudited)
                                Three Months Ended
                                October 31,
                                2009       2008
Net cash provided by            $  6,042   $  (12,849 )
(used in) operating activities
Depreciation and amortization   $  1,981   $  1,844
Capital expenditures            $  334     $  3,839

SOURCE: Webco Industries, Inc.

Webco Industries, Inc. 
Mike Howard, 918-241-1094 
Chief Financial Officer

The survey conducted by global research firm GlobeScan Incorporated is of particular relevance to this year's APEC CEO Summit as it examines the policy issues surrounding sustainability in the context of the global economic crisis, one of the central themes of this year's event. Three-quarters of survey participants reside in APEC economies, and interviewees included experts from the government, private sector, academia and non-profit organisations.

Other possible upshots of the economic crisis, according to interviewees, include the adoption of more environmentally sustainable lifestyles, the start of better cooperation among national governments to create binding international agreements, and an impetus for governments to reform fiscal policies to recognize environmental impacts.

When asked for their ideas for fixing the world's economy, 22% of the experts suggested solutions that centred on new approaches to development, including sustainable development and the "triple bottom line", which takes into account ecological, social and financial performance. Respondents also recommended overhauling energy systems, including switching to renewable and low-carbon sources and improving energy efficiency, while some called for better regulation of the financial markets and banks.

Other survey highlights:

- A strong majority of experts think that improved energy efficiency and a switch to renewable energy sources are important in fostering a "green industrial revolution".

- Seven in ten experts believe that a green industrial revolution will improve people's living conditions in general and create jobs.

- Nine in ten experts feel that the current public stimulus programmes should be more focused on activities that foster a more environmentally sustainable future.

- Just over half of all experts said that in the foreseeable future economic growth will be possible without harming the environment.

- Sustainability experts are split as to whether a paradigm shift toward a more sustainable way of living will take place in the next five years. Opinions range from very optimistic to very pessimistic.

- Experts predict that the United States and China will supplant Germany as leaders in green technology over the next ten years.

The company has been a world leader in environmental technologies. In fiscal 2009, Siemens generated revenue of EU23 billion with products and solutions from its Environmental Portfolio. The green portfolio has grown by 11 percent by comparison with fiscal 2008, when its revenue - calculated on a comparable basis - totaled just EU20.7 billion.

This year, Siemens is a major partner of the APEC CEO Summit, the most highly anticipated business forum in the world, and will share its experience and expertise on the subject of sustainable development at the event.

The full survey findings of the "Economic Crisis and Sustainable Development" report are available at www.siemens.com/apec.

About Siemens AG

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 420,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of Eu77.3 billion and a net income of Eu5.9 billion (IFRS). Further information is available on the Internet at www.siemens.com.

Source: Siemens AG

Contact:

Siemens Pte Ltd
Sharon Teo
Media Relations
Tel: +65 6490 8474
E-mail: sharon.teo@siemens.com