June 2010 News Release

Carbon Resources Management Team has over 70 years of experience in the activated carbon industry. Our Sabre series® activated carbon products are the most diverse line of activated carbon products on the market. Additionally our Spartan Series® specialty activated carbon products are surface modified to be extremely effective in various applications. We also provide a line of Guardian Adsorber Series® which are off-the shelf as well as custom built activated carbon adsorption systems.

Another Successful Year at American Water Works Association

Carbon Resources exhibited at the ACE10 American Water Works Association tradeshow that was held this month in Chicago, Illinois. An informal survey was conducted by Janney Capital Markets with roughly 100 exhibitors**. About 70% of the respondents felt sales were either on par or up by single digits versus one year ago and most expected sales to accelerate in the next year with 40% expecting double-digit growth. We anticipate that some of this growth will be coming from the disinfectant by-product rule mandated by the EPA that goes into law in 2012.

There was strong interest in our sabre series(TM) CR325AA powder activated carbon especially for those municipalities that do performance based bidding. This product has proven time and time again to be the most cost effective product for geosmin and MIB removal. Carbon Resources will even offer comparative testing in some cases, to those municipalities that currently don't have a system in place to allow for performance based bidding.

Committee member Robert Potwora, Carbon Resources' Technical Director, attended the AWWA Standards Committee meeting on Activated Carbon held during the event. The committee is currently updating the B604-05 Granular Activated Carbon standard for drinking water. An updated standard is expected to be released this year and Carbon Resources will update our readers when it becomes available.

Carbon Resources would like to congratulate Mr. Robert Maul of American Water Co.-Western Division, St. Louis, MO. Mr. Maul was the winner of the iPod touch drawing that Carbon Resources offered during this event. Thank you to everyone who stopped by our booth and introduced yourselves.

Next year the American Water Works Association ACE11 will be held in Washington DC from June 12-16. Carbon Resources will be exhibiting and potentially presenting a technical paper.

**Janney Capital Markets Equity Research Industry Report June 28, 2010.

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