Welcome to the Koppers fourth quarter earnings conference call. (Operator Instructions) I would now like to turn the conference over to Mr. Michael Snyder, Director of Investor Relations. Please go ahead, sir.

Welcome to our fourth quarter conference call. My name is Mike Snyder and I’m the Director of Investor Relations for Koppers. At this time each of you should have received a copy of our press release. If you haven’t, one is available on our website or else you can call Rose Zalinsky at 412-227-2444 and we can either fax or e-mail you a copy. Before we get started, I would like to remind all of you that certain comments made during this conference call may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties, including risks described in the company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included in the company’s comments, you should not regard the inclusion of such information as a representation that its objectives, plans and projected results will be achieved. The company’s actual results could differ materially from such forward-looking statements. I’m joined on this morning’s call by Walt Turner, President and CEO of Koppers, and Brian McCurrie, Vice President and CFO. At this time, I’d like to turn over the call to Walt Turner.

Welcome everyone to our 2008 fourth quarter conference call. Before I get into the 2008 results, I would like to make a few comments on the global economic environment and how it has affected our business. Obviously, we’ve seen some dramatic changes in our end markets in the fourth quarter. These changes have led to certain negative financial consequences that we will discuss during the call. I would like to emphasize a few key points to make sure that they are not lost in the details of explaining a difficult quarter. We remain confident in the longer term opportunities offered by our key end markets and in our ability as a market leader with an experienced management team to successfully navigate what may be a difficult 2009. Our business model has not changed. We will continue to offer critically needed high quality products to our customers at the utmost effective cost effective price we can. We will focus on maximizing profits and generating cash flows, which are both hallmarks of Koppers. I’m confident that the future will be bright. We expect, not only a return to the high performance we achieved earlier in 2008, but also expect continued improvement as we expand our presence in China and further consolidate our mature markets. I would like to discuss our fourth quarter 2008. Fourth quarter sales for the company were $289 million compared to prior year fourth quarter sales of $309 million reflecting the decline in the global economy. Sales in the fourth quarter were significantly impacted by decline in demand and in some cases prices for certain products, particularly in our global carbon materials and chemicals business. Fourth quarter sales of carbon pitch to the aluminum and steel industry declined 9% from the prior year’s fourth quarter as a result of…

Before I get into the financials, I would like to walk you through the $17 million of special items impacting EBIT in the fourth quarter. As Walt mentioned, we recorded a total or $12 million of inventory adjustments in the quarter. These included $8 million of incremental LIFO adjustments in the U.S. beyond those recorded in the prior year. These were largely caused by rapid declines in demand that left us with significantly higher than anticipated inventories at higher costs at year end. In addition, we incurred $4 million for lower cost to market write-downs outside the U.S. without the pleasure of dealing with LIFO. Due to the nature of the LIFO calculations, which is done on a single pool basis unlike the more straightforward LCM calculations, we will expect negative margin impacts in the first quarter of 2009 as higher cost inventories for orthy-xylene and phthalic anhydride are liquidated at lower sales prices. These higher cost inventories should be completely processed by the end of the first quarter. In January of 2009 we received notice that our customer for our glycerin refining operation in the UK was canceling their contract. As of this date, we have not identified an alternative customer for this capacity so we recorded an impairment charge of $3.7 million at the end of the year. On an annual basis this operation returned less than $200,000 of profit and is not expected to have a significant impact on the future levels of profitability. Should we be able to negotiate a contract with the new customer, we may be able to improve the overall profitability of this operation. The plant is located at our Port Clarence coal charge installation facility and its impairment will not result in additional impacts to that operation. This adjustment impacts EBIT and…

In 2008, our two business segments, carbon materials and chemicals, and railroad and utility products, were 65% and 35% respectively of our total revenues. The railroad and utility product segment is expected to grow in 2009 as the demand for untreated wood crossties, primarily to the North American Class 1 railroads, increases by 2% to 3%. As we currently see it, we don't believe that the rate of the tie insertions in 2009 will be significantly impacted by economic conditions. Due to the importance of crossties to the rail infrastructure, we believe that the railroads will reduce spending on ties only as a last resort. You see this business, although having some risk of volatility in a very uncertain economic environment, as having a more consistent performance in a market downturn. On the profit side, we have been experiencing increases in costs for the untreated crossties due to lower demand for hardwood in the furniture and housing markets that have driven prices up in the hardwood market as sawmills struggle to maintain their sustainability. The cost of creosote is also increasing as the cost of coal tar raw materials increases. These increases, although absorbed largely by our customers, is having a dilutive impact on our margins. I expect this trend of cost increases to reverse sometime in 2009. Our utility products business in Australia is a market leader and I totally expect another strong performance there in 2009. In addition, we are reviewing the government stimulus plan closely and are hopeful that infrastructure studying will have a positive impact on the railroads. The carbon materials and chemicals segment is largely tied to the steel and aluminum markets. If you recall, we use a byproduct [inaudible] coke making process, coal tar, as our raw material to produce carbon pitch for the…

(Operator Instructions) Our first question comes from Laurence Alexander – Jefferies & Company.

I guess first question, you mentioned that you thought there would also be a LIFO impacting in Q1. Will it be similar to [inaudible] in Q4? ence Alexander – Jefferies & Company: I guess first question, you mentioned that you thought there would also be a LIFO impacting in Q1. Will it be similar to [inaudible] in Q4?

There won’t be LIFO as such in the first quarter. It will be a margin dilution impact. The LIFO will get measured over a full year period. So we’re not seeing that level of LIFO impact following on in the first quarter.

Then with respect to the concern in public commercial railroads demand, is that front ten loaded in the year? ence Alexander – Jefferies & Company: Then with respect to the concern in public commercial railroads demand, is that front ten loaded in the year?

Normally it would not be because of the seasonal aspects of our business. Normally the buying pattern certainly of the commercial would be slower in the first quarter just because of weather. When we would expect to see any impact in that would probably be starting in maybe the April/May timeframe. Their work is more heavily concentrated in the summer months.

Also our commercial business is in the north, which as Brian stated, is why it says weather related, so yes.

Then lastly on the raw materials, how much is your coal charge cost likely to be to increase in 2009 versus 2008? Is there a timing issue between your raw material supply contract and your customer contracts, which implies more of a hit in the first half versus the second half? ence Alexander – Jefferies & Company: Then lastly on the raw materials, how much is your coal charge cost likely to be to increase in 2009 versus 2008? Is there a timing issue between your raw material supply contract and your customer contracts, which implies more of a hit in the first half versus the second half?

In North America we continue to see the raw material increasing, as we mentioned earlier in our presentation, which it continues to be based off of supply and demand primarily. In other parts of the world it’s been a slight increase. We’re basically trying to keep our costs at the 2008 levels.

So on an overall basis, your raw materials will be up double digits or less then that? ence Alexander – Jefferies & Company: So on an overall basis, your raw materials will be up double digits or less then that?

It would probably be low double digits, but it is very different in each geographic region, so I don’t know that just sort of broadcasting it is really the right way to look at it.

Our next question comes from the line of Steve Schwartz – First Analysis. Steve Schwartz – First Analysis: There’s a tax credit hanging out there with a 45G and it expires I guess at the end of 2009. Say at this point you guys are expecting that the railroads will not be taking advantage of that this year?

These are the commercial lines? Steve Schwartz – First Analysis: I think it applies to all infrastructures, rail infrastructures.

I think generally speaking, I think because of the volatility in earnings tax credits may have less value. Possibly more so to the commercial side, so I don’t know that the volatility in the environment isn’t going to drive certainly the commercial part of the business in the near-term.

I’m not aware of any in the Class 1 credits that’s out there.

I think the commercial business is about 15% of our total railroad revenue. Not that it’s insignificant, but it’s not really the driver. I think the consistency that we saw out of the Class 1 is really I think a good takeaway from the call. Steve Schwartz – First Analysis: And you say you’re still seeing solid demand from the Class 1 for white ties right now?

Both white ties and obviously the treated ties, yes. Steve Schwartz – First Analysis: Okay so that’s good. So the treatment services TSO should hold up then in the second half of the year from the Class 1?

If it was based on our white tie fulfillments, yes. Steve Schwartz – First Analysis: Okay. And then regarding the contracts for coal tar is there a volume component or does that only lock in price?

It’s a requirements contract what’s being produced it’s a pricing as well. But it’s something we’ve seen the coke batteries declining on coke production. Therefore, they’re generating less coal tar so we’re basically taking on a requirement basis. Steve Schwartz – First Analysis: And it sounds like the downturn in demand from the aluminum industry is commensurate with what this steel or coke production downturn has been in supplying you coal tar. Is that right it’s one for one?

Well not really. Again it’s sort of regions of the world going back to October/November is when we started to see steel production declining cutbacks and so forth. Aluminum came a little bit later. Again, it’s the regions of the world but it’s not been one for one and we see more aluminum cutbacks in North America because we think we have higher smelting costs for us here versus other parts of the world, but it’s been primarily Europe and North America where there have been cutbacks and that’s why there’ve been steel production cutbacks as well. But we are very careful of how we we’re looking at our raw materials and being able to meet that demand based on the cutbacks.

Our next question comes from the line of Saul Ludwig – KeyBanc Capital Markets. Saul Ludwig – KeyBanc Capital Markets: Back to the first question that Lawrence asked with regard to the high cost inventories running through cost of goods at a higher level than what they might otherwise be, what would be the dollar impact of these higher raw material costs in the first quarter versus what they would normally be, and will they be worked through by the end of the first quarter?

I think you’re probably looking at a couple million dollar impact, Saul. We do expect that those will be worked through by the end of the first quarter. Saul Ludwig – KeyBanc Capital Markets: Secondly, with the lower operating rates, how does this unabsorbed overhead hit you when you are running whether it be your distillation plants or your carbon black plants or your railroad process, are we going to see an impact of the unabsorbed overhead as a component?

That’s one of our cost reduction issues is optimizing operations, which unfortunately means reduction of headcounts that sort of thing. Everywhere we can, we are looking at optimizing that production. When we mentioned Denmark, we mentioned the U.S. right now is primarily on the carbon distillation plants not necessarily the wood treating plants. Again, it’s doing what we can to keep those costs under control.

Saul, it’s probably more in the couple million dollar range, you’re not talking a huge component of fixed costs in these plants? Saul Ludwig – KeyBanc Capital Markets: But maybe $2.5 million or so.

Right. I think the largest part of that’s probably going to be the carbon black plant in Australia. Saul Ludwig – KeyBanc Capital Markets: Walt, how many distillation plants does Koppers have?

Just to make sure, when we are talking about curtailment other than the Australia that’s running at 30%, most of the other plants were talking about running maybe three weeks out of four weeks in a month. Saul Ludwig – KeyBanc Capital Markets: They’re running 75%. How many distillation plants does Koppers have around the world and is there are any opportunities to actually close or consolidate these, and if so, should we be looking at another round of some special structures some time during 2009?

Hopefully not. On our current distillation plants we have three in the U.S. we have three in Europe, one in Australia, two in China projects for a total of nine. Obviously, we just finished the new distillation facility in China, which is being commissioned now and will be starting up second quarter. No, I don’t see anything like that, I guess what I’m saying in that regard is that we’ll be seeing aluminum production coming back, we’ll see current distillation continuing when we get back to normalized levels of product demand.

Saul, one of the things that there was there was an M&A opportunity in Europe that’s probably the [inaudible] so we’ve talked about this that that would be a place where optimization occurred. Saul Ludwig – KeyBanc Capital Markets: I understand about the margins when your matching prices to raw materials costs, so margins can be distorted. But what was the major reason that the railroad tie earnings fell from $7 million to $3 million even on higher revenues from the fourth quarter?

I think a lot of that came from mix, but a lot of it also came from commercial ties. We saw the commercial tie business you’re not getting a pass-through of the raw material costs. The raw material cost increases that we saw in the year probably hurt us more than the commercial tie business than we would have normally seen. That was fairly heavily weighted in the fourth quarter. Saul Ludwig – KeyBanc Capital Markets: The final question, what we’re seeing here in the first quarter with, not only your company, but with so many different companies, in low business and then you’re going to have the unabsorbed overhead, you’re going to have the higher raw material going through, should we be looking for basically a red number in the first quarter without quantifying the degree thereof. Does it look like the company will probably have a loss in the first quarter?

Saul, you figured out how to get us in a position to give guidance on a quarterly basis. Saul Ludwig – KeyBanc Capital Markets: On the plus side of neutral or minus not being more pinpointing.

Saul, I would say that the first quarter results, just based on all the turmoil, are probably going to be closer to the breakeven than special, whether it’s slightly positive or slightly negative isn’t, I think, that critical.

Next question comes from the line of [Bob Vecht – Lord Abbott] [Bob Vecht – Lord Abbott]: I know you had repurchase authorization. Did you make any? Did you repurchase any shares in the quarter?

We did not. [Bob Vecht – Lord Abbott]: No current plans to I imagine, based on some of the comments earlier?

We have not repurchased any to the current date. [Bob Vecht – Lord Abbott]: Is it 55 out of 75 left or 75 left?

About 55 left. [Bob Vecht – Lord Abbott]: I think it was about a year ago you folks last increased the dividend, will you guys be recommending one at the next board meeting?

We just had a board meeting a week ago and had announced the dividend of $0.22 per share. I think it was a week ago. [Bob Vecht – Lord Abbott]: That’s at the same current rate it’s been though, right?

Right, same rate. [Bob Vecht – Lord Abbott]: In regards to, you mentioned the new plant in China is up, what level do you expect it to possibly be producing at in the second quarter?

It will be commissioned and ready to start up, it’s really going to depend upon the product demand of about half the products will be consumed in China, which could be the carbon black industry and then the naphthalene going into construction and I think eventually will be focused on export as well as some domestic. It’s too soon to tell you whether it will be 50% or cranking all the up to 100%.

Just to be clear, we did have the plant expansion that’s up and running and that’s the one that we consolidate. So I would expect we would see a more near-term benefit from that. I think that minority interest in the new plant is probably going to, as Walt said, phase in back in the third quarter. [Bob Vecht – Lord Abbott]: Just for contrasting purposes, in ‘03 when we lost a lot of North American aluminum production principally due to hydro power costs, what was that decline in demand either in percent and/or in tonnage and what do you calculate the current short-term decline to have been at the moment?

I’m trying to remember back to 2003/2004 time frame, but at the moment it looks like the global industries cutback about 20% overall around the world [inaudible] don’t really know that. But back in 2003, that’s when the aluminum industry was going down, I just don’t recall what the percentage was and some of that production really has come back. [Bob Vecht – Lord Abbott]: In terms of magnitude though, tonnage has the decline been less or similar to then?

There has been additional production out there and, obviously, since the last five or six years. Obviously, it’s more this time than before. [Bob Vecht – Lord Abbott]: On a global basis?

Right [Bob Vecht – Lord Abbott]: Can you update us on a level, if any, of business in South Africa with relative to the mining order that you’ve had it in?

Well, unfortunately, we did have the export business last year, but unfortunately, with the steel cutbacks and the aluminum cutbacks, for boxide and [inaudible] projects have really slowed down dramatically. We still have a couple of inquiries but nothing major at this point. [Bob Vecht – Lord Abbott]: So at the moment we wouldn’t expect anything in 2009?

Certainly not from the mining side. [Bob Vecht – Lord Abbott]: You referenced the opportunities that may be presenting themselves, if one were likely to guesstimate on where that activity likely would be the greatest, are we referencing Europe?

I think we’re referencing both Europe and China as well. We continue to target those two regions quite extensively.

I wouldn’t exclude North America either.

I guess there is a chance there too. [Bob Vecht – Lord Abbott]: So you have a table full?

A good list, yes. [Bob Vecht – Lord Abbott]: Your depreciation looked like it was $30 million last year?

That included the impairment as well, so probably about $3.7 million of that $30 million is the impairment charge that will go away. [Bob Vecht – Lord Abbott]: That will go away, okay. And then what will be in ‘09 now that you have these China projects online?

It should be about $27 million. [Bob Vecht – Lord Abbott]: Okay. That's still greater than your CapEx that you talked about earlier at $23.

Yes. [Bob Vecht – Lord Abbott]: And do you expect your working capital to likely come down this year?

I would say we are focused on it, although it's interesting. A lot of it depends on what happens in the way of recovery in the latter part of the year. So normally I would say, yes, and certainly we've seen receivables come down and we're focused on bringing our inventories down. If we do see sort of a bump up in demand late in the year, that could have an impact on us. But I would expect we would still look to be managing our working capital downward. [Bob Vecht – Lord Abbott]: Okay. So you don't have any financing demands in terms of maturities, though, this year right?

We don't have any debt maturities until end of 2013. [Bob Vecht – Lord Abbott]: So depreciation where it is and possibly some lower working capital requirements, you should be adding to your cash by this time next year?

Yes. I think part of what Koppers tries to do is generate cash all the time. I do think one of things important is the seasonality in our business, which normally caused us to borrow money early in the year and then generate more cash later in the year. To the extent we'll probably have lower levels of profitability, and certainly in carbon materials and chemicals I would expect that trend to be holding true. I would think probably later in the year, yes. But I wouldn't look for it at the end of the first quarter. [Bob Vecht – Lord Abbott]: Okay and what would you define as the tightest covenant that you have on the latest financing?

I think it's probably the domestic charge covenant. That's an interest covenant and that’s our domestic EBITDA over our Koppers, Inc. interest. [Bob Vecht – Lord Abbott]: Okay. And what is the current level?

The current level in it is we're at six and the requirement is three. [Bob Vecht – Lord Abbott]: Okay. So you definitely have some room there.

Most of the covenants have pretty good headroom. But I do think, sort of profitability and interest expense are probably the two inputs there. And we do have ability to utilize our revolver to take down some of the bonds but to manage, certainly, the interest expense side of that calculation. [Bob Vecht – Lord Abbott]: Okay. Well, it sounds like all we all have to do is wait for the globe to start growing again.

I'd like to turn the call back over to Mr. Turner. Please go ahead with any closing remarks.

Thank you for participating in our today's call and I appreciate your continued interest in our company. I believe that we continue to be well positioned to weather this storm in 2009 and prosper when things return to more normalized levels. Diversity is a key for us in our major products, our end markets and in our geographic locations around the world. We see continued strong demand in our in markets. In the long-term particularly based on the committed aluminum capacity additions coming online in the Middle East in 2009, 2010. We're all very well positioned, given conditions in China. Our balance sheet can support, not only these additions, but also other potential opportunities to stimulate growth or create shareholder value, particularly in light of the cash from the sale of Monessen combined with the new bank agreement, which provides significant stability and flexibility going forward. And finally, we remain firmly committed to enhancing our shareholder value by executing our strategy of providing our customers with the highest quality products and services while continuing to focus on our safety, health and environmental issues. Thank you very much.

Ladies and gentlemen, this concludes the Koppers fourth quarter earnings conference call. Thank you for your participation.