Port Lavaca, Texas, June 16, 2006.
Seadrift Coke L.P. announces new prices for its Electrode Grade and Pin Stock Grade Petroleum Needle Coke effective today.

Electrode Grade Petroleum Needle Coke: $1,500/metric ton
Pin Stock Grade Petroleum Needle Coke: $1,600/metric ton

• The above prices are based on Oil Prices as of June 16, 2006.

• In addition to the Base Price, there will be an Energy Surcharge to reflect any new Oil Price changes (positive or negative) after June 16, 2006.

• These prices will be applicable for all new orders received after June 16, 2006.

The demand for Petroleum Needle Coke remains at very high levels and is not anticipated to change in the medium term. Globally, UHP Graphite Electrode demand for EAF steel- making is maintaining a tight supply versus demand balance for Needle Coke.

The price increases for Petroleum Needle Coke are required due to major increases in petroleum prices, increased transportation costs, and the need to invest in quality and environmental improvements.

Seadrift Coke L.P. has participated in the OSHA Voluntary Protection Program (VPP) since May of 2000. We received our “Star Re-certification” approval from the OSHA Regional Office on January 6, 2006, and was honored as a “Star Among Stars” at the regional VPPPA conference in Corpus Christi, Texas, May 16, 2006. This award is given for maintaining accident/injury rates at least 50% below our industry averages. We are proud of our VPP program and what it has helped us accomplish in the area of employee safety. Volunteers from each department within the plant make up our VPP team that supports and promotes the program at Seadrift Coke. We also support the overall VPP program in our region by supplying three trained SGEs (Special Government Employees) to help OSHA conduct audits at other sites. Seadrift Coke is committed to continued participation and support of the VPP program.

Co. Commissioners approve abatement for Seadrift plant projects. By Charlyn Finn Port Lavaca Wave The Seadrift Coke plant is now a reinvestment zone. Such zones are designed so industry may apply for tax abatement, and Coke officials propose a $25 million expansion project. Calhoun County commissioners also approved the application for tax abatement. “We are just happy that they are doing this expansion project,” precinct 1 Commissioner Roger Galvan said. It is estimated that once the expansion is complete, five permanent jobs will be created and 95 jobs currently at the facility will be retained. The abatement is for a five-year period. There will be a 90 percent abatement in 2007, 85 percent in 2009, 75 percent in 1010, 509 percent in 2001 and 25 percent in 2012. The expansion will be part of the current chemical manufacturing process and is expected to have at least a 20-year economic life after completion. Seadrift Coke officials hope to expand production by 40 percent with five major plant improvement proposals. A $3 million feedstock filtration project is proposed to allow the use of higher solids content feed stock. A $4 million coke drying system to dry the coke feed prior to entry in the calcining unit is proposed. Currently, moisture laden coke is fed directly to a kiln. A $12 million calcining unit expansion project is the largest of the projects. The upgrade will consist of a new rotary kiln and cooler assembly. The fourth project is a $5 million gas oil split project. Gas oil is produced as a by product of the coking operation and is currently sold to traders who use the oil in blending fuel. The fifth project is a $3 million electrical improvement projects.