Richard J. Diemer Jr., SVP and CFO

Sandra Rodriguez, Director of Investor Relations

Morgan Stanley Basic Materials ConferenceFebruary 20th, 2008

Forward-Looking StatementsPortions of this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Albemarle Corporation believes its expectations reflected in the presentation are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially.

Factors that could cause actual results to differ from expectations include, without limitation, the inability to pass through increases in costs and expenses for raw materials and energy; competition from other manufacturers; changes in demand for our products; the gain or loss of significant customers; fluctuations in foreign currencies and increased government regulation of our operations or our products.

Additional factors that could cause Albemarle’s results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in item 1A of our Annual Report for the period ended December 31, 2006.

SOLUTIONS

SUSTAINABILITY

CHEMISTRY

Using our creativity, teamwork, flexibility and enthusiasm to add real business value to our customer relationships

Doing the right things – in every community in which we operate -with regard to our employees, the environment and society in general

Continuing to push for innovation in the lab, which is essential for developing leading market positions and creating long-lasting customer value

Albemarle develops, manufactures and markets specialty chemicals and services that benefit many of the largest and most respected companies in the world. Our products are essential ingredients in brands that millions of people use every day to make their lives healthier, safer, cleaner and more enjoyable.

Strong Balanced Portfolio• Leading provider of specialty chemicals that go into products you use every day

• Technology and service-based business model yields innovative solutions

• Strong margin and cash flow businesses

• Committed to product and environmental stewardship

23%

39%

38%

Global Business Reach• Strong Americas foundation

• Acquisitions have helped build a strong European business

• Asia, Middle East and Russia represent the largest growth potential

39%

16%

44%

39%23%

38% PolymerAdditivesFineChemicalsCatalysts

44%

39% 17% Americas

Europe

Asia Pacific

2007 Net Sales—$2.3 Billion

Net Sales(in millions of dollars)

Net Income, Excluding Special Items(in millions of dollars)

$2,336$2,369$2,107

$1,514$1,110$1,008

2002 2003 2004 2005 2006 2007

$70 $67 $76$114

$201$230

2002 2003 2004 2005 2006 2007

Innovation

Innovative Solution Provider• In 2007, Albemarle filed over 106 patents applications.

- Currently ALB has 1,533 active patents and 1,551pending/published patent applications

• Ended year with 25% of our sales from new products• Opened new technology center• Technology is focused on

- Alternative fuels- Green additives- Pure products

• Meeting customers’ needsand creating unique solutions

New Product Revenue Growth

% of sales by year

25%28%

24%18%

14%13%

2002 2003 2004 2005 2006 2007

Growth Through Innovation

Inorganic FRs

Biodiesel Catalysts

Fuel Additives for Alternative Fuels

New Polymeric Solutions

Mercury Emission

Reduction

Emphasis on the Environment• Wildlife Habitat Certification at Orangeburg - “ Hundred Acre Woods”

• Energy-reducing efforts saved 604 billion BTUs in 2006• Reduced CO2 emissions 47,000 tons in 2006• Voluntary Emissions Control Action Program (VECAP) - a proactive and dynamic industry plan for product stewardship to understand, control and reduce emissions

Alternative Fuels TechnologyDevelopments Across CTL / GTL / Biomass Conversion

Steam Reforming

Coal Gasification

Biomass Gasification

(remote)GAS

COAL

BIO-MASS

FischerTropsch Upgrading DIESEL

Vegetable Oil Crop

Veg. OilHydroconv.

Upgrading “BIO”DIESEL

Albemarle Catalyst Developments Across

Portfolio Growth

Net SalesDollars in millions

Segment Income (excluding special items)Dollars in millions

Polymer Additives—Innovation, Globalization

$905$920$798$726

$547$460

2002 2003 2004 2005 2006 2007

$131$147

$92$79$62$55

2002 2003 2004 2005 2006 2007

Polymer AdditivesGrowth Drivers• Increasing fire safety standards

(especially in Asia)• Expanding uses for polymers• Strength in demand for proprietary flame

retardants, partially offset by market decline in consumer electronics

ALB Strength• Innovation and application skill • Strong position with market leaders• Expanding technology

2007 Net Sales $905Dollars in millions

74

26%

70%

30%

Flame Retardants Stabilizers & Curatives

The Flame Retardant LeaderBroad, Innovative Product Portfolio• Bromine, Mineral, Phosphorus

Low-Cost Manufacturing• Bromine: plants located at low-cost brine locations (Arkansas and Jordan)

• Mineral: low capital cost in Europe; replicate in U.S., China

• Phosphorus: acquire/develop regional low-cost manufacturing locations; plant to be built in China

Broad Application & Product Innovation• Expand applications know-how into textiles

and coatings

• Developing new products to meet evolving requirements

Regulatory & Standards• FR makes ALB into a powerful partner for OEM’s and polymer

manufacturersProtecting

our families

Protectingour heroes

Protecting our businesses

Net SalesDollars in millions

Segment Income (excluding special items)Dollars in millions

Fine Chemicals—Restructured Portfolio

$537$609$572$504$480$455

2002 2003 2004 2005 2006 2007

$87

$62$46$42$46

$58

2002 2003 2004 2005 2006 2007

Fine ChemicalsGrowth Drivers• Demand growth in bromine-related products

• Innovators outsourcing custom manufacturing of actives and intermediates

• Focused synthesis on niche pharmaceuticals

ALB Strength• Global, low-cost bromine position • Strong customer relationships• Capability to support customers in development

of life sciences products

2007 Net Sales $537Dollars in millions

63 %35%

65%

Performace Chemicals FCSI

• Drive development of new Bromine applications with market leaders

• Hg removal from coal fired burner emission ramping up in 08-09

• Hydrocarbon manipulation developments longer term

• Major volume opportunity for Abzol® solvent in Asia now

• Bromine Technology Center to identify new applications

• Poultry Biocides and globalization of proprietary Bromine Biocides

Bromine Franchise

Fine Chemicals

Avg Bromine Price/MT

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2002

2003

2004

2005

2006

2007

• Utilize custom manufacturing window to identify market segments of attraction and focus

Pharma- Increase number of API and Pharma Intermediate opportunities

- Acquire additional assets/businesses in this market space to add to capabilities

Specialty Monomers and Polymers- Developing niches that require special capability that we possess, such as

Organometallic, High Pressure, CGMP

• Increase the amount of Albemarle proprietary IP for niche API opportunities

Fine Chemical

Fine Chemistry Services

Catalysts—Accelerating Growth

Net SalesDollars in millions

Segment Income (excluding special items)Dollars in millions

$894$839$738

$283

$83$92

2002 2003 2004 2005 2006 2007

$155$123

$92

$35

$13$12

2002 2003 2004 2005 2006 2007

Catalysts

Growth Drivers• Increasing demand for petroleum products• Tightening fuel quality specifications• Decreasing quality of crude oil feedstock• Growth in polyolefins

ALB Strength• Blue-chip customer and joint venture relationships• Proprietary technology, hydroprocessing• Customer technical service• Single-site support technology

2007 Net Sales $894Dollars in millions

86 %

14 %

20%

80%

Polyolefin Catalysts Refinery

The Solution Provider….

Leading Portfolio of grades for all major applicationsCustom tailored “stacks”

Key Players: Albemarle, Criterion (owned by Shell) and ART(j.v. between Grace and Chevron)

More than 2000 units worldwide

Combination of catalysts tailored to individual unit

Removes impurities (sulfur, metals, etc.)

Batch process: unit shuts down to change catalysts; approximate 2-year cycle timeGlobal Market 2006— $2 billion

Average market growth 4-6% per year

Market growth (t/a)

0

50

100

150

200

250

1980 1990 2000 2010 2020 2030

actual

forecast

0

200

400

600

800

1000

1200

1400

1600

1950 1960 1970 1980 1990 2000 2010

ConventionalStarsNebula

Activity progression

Albemarle’s Hydroprocessing Catalysts

FCC Catalysts—The Value Driver

• Global market 2006: >550,000 metric tons / $1 billion• Average market growth over the past five years, 2.5% p.a. (4.4% last two years)• Tightening supply/demand

Key Raw Materials/Costs• Silicas• Aluminas• Energy—Natural gas

Main Players• W. R. Grace• Albemarle• BASF

FCC Catalysts – Tightening Supply

Performance History

Historical Performance/Objectives

Sales Growth Y/Y 5–6% -1 +12 +39

Segment Income Margin1, 2 >17% 15.9 14.1 10.9

Return on Capital Employed1 >15% 13.4 13.3 8.3

Dividends Growth Y/Y >10% 21.7 11.3 6.0

Net Debt to Capital 30–35% 30.1 34.7 44.0

TARGETS ACTUAL

2007 2006 2005

1 Excluding special items2 Excluding corporate

(in millions, except percentages) 2007 2006 2005

Net Sales 2,336$ 2,369$ 2,107$

Net Income1 233$ 201$ 114$

EBITDA1 435$ 391$ 300$

EBITDA Margins1 18.6% 16.5% 14.2%

Capital Expenditures 99$ 100$ 70$

Net Debt 550$ 546$ 731$

Net Debt as % of Total Capitalization 30.1% 34.7% 44.0%

Earnings Per Share1 2.40$ 2.07$ 1.20$

Albemarle Performance History

$12.38$6.94 $9.06 $11.94 $11.88 $9.59 $12.00 $14.23$9.69 $41.25$35.90$19.18$19.36$14.99$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

Closing Date

Stoc

k Pr

ice

0

100

200

300

400

500

600

700

Cum

ulat

ive

Ret

urnCAGR 15%

CAGR 19%

Cum. Return 572%

Return to Shareholders

$1,274$1,032

$655$486

$295

2003 2004 2005 2006 2007

Cumulative Cash Flow from Operations

$222

$933

$731

$546 $550

30%35%44%

57%

26%

2003 2004 2005 2006 2007

Net Debt Compared to Net Debt to Cap

($mm)

($mm)

• Strong Cash Flow History

• Cumulative Cash Flow above $1 billion

• Dividend increase 13 consecutive years

• Capital Expenditures of roughly $100 million/year

• Net Debt reduction 41% since 2004

• Net Debt to Cap 30%

• Debt rating upgrade from Moodys and S&P during 2Q

Growth Vision

Global Growth Opportunities• Catalysts blending facility start up in China

• Phosphorous FR plant under construction in Nanjing,China

• Middle East/India regional headquarters in Dubai

• Expanding R&D facilities, ramping R&D spending in 2008

• Evaluating options to further expand in the Middle East and China

Albemarle Nanjing PFR Plant

Strategies To Accomplish:Invest to serve customers & segments where our service, standards and technology are valued

Build & operate globally. Optimize low cost, environmentally sound manufacturing technologies

Leverage external partner competencies into our global business systems

Invest to develop new, sustainable product technologies and to enter attractive new, sustainable market arenas

Position for leadership in world’s fastest growing regions

Acquire technology and market access in adjacent business areas

• Leveraging our ability to identify and provide

solutions for the challenges our customers face• Emerging economy growth will establish future needs• Providing clean energy, food and materials

• Creating new environmentally sensitive polymer additives and fuel additives

• Creating a global fine chemicals service business

Albemarle is well positioned to have another very successful year in 2008

Yield a Sustainable Corporate Model