PRESS RELEASE

Detrex Corporation Reports Year 2003 Results

Southfield, Michigan – March 30, 2004 - Detrex Corporation (OTCBB: DTRX), a diversified manufacturer of PVC and CPVC pipe, duct and shapes and specialty chemicals including lubricant additives and high purity hydrochloric acid, today announced operating results for the year ended December 31, 2003.

Revenues for 2003 were $59.9 million, a decrease of $1.1 million compared to 2002 as the result of poor economic conditions in the Company’s domestic markets. Elco’s sales declined by $1.6 million, largely as the result of a decrease in high purity hydrochloric acid sales used in industrial applications and semi-conductor manufacturing. This decrease was partially offset by a $0.6 million increase in Harvel Plastic’s sales, which was achieved in spite of a significant downturn in commercial and industrial construction markets throughout most of the year. Changes in sales mix, highly competitive conditions and rising raw material costs had a negative impact on margins at both subsidiaries.

The Company incurred a pre-tax loss from continuing operations of $1,541,245 in 2003 compared to pre-tax income of $668,357 in 2002. This $2.1 million decline in 2003 compared to 2002 is due to a $0.9 million increase in pension expense, the expiration of a royalty agreement which provided $1.1 million in royalty income in 2002 and lower operating income from Elco and Harvel, partially offset by a lower provision for environmental reserves, lower interest expense and other miscellaneous items. 

Progress was made in discharging liabilities associated with discontinued operations during 2003. Several properties were cleaned up and disposed of and work continued on others. The reserves were increased with a net charge to discontinued operations of $229,000; this was primarily due to the need to increase holding costs for the properties. The net loss for 2003, including discontinued operations, was $1,294,824 or $0.82 per share compared to a loss of $699,875 or $0.44 per share in 2002.

In spite of the $1.2 million net loss in 2003, equity was basically unchanged compared to the prior year because the additional minimum pension liability reflected in Accumulated Other Comprehensive Loss was reduced by $1.2 million. This reduction is the result of improved performance in the pension asset portfolio, partially offset by a reduction in the discount rate used to calculate the pension obligation. 

Commenting on the Company’s results, President and CEO Tom Mark said, “2003 was a very difficult year for the Company as economic conditions hurt operating performance and cash flow. We took actions to minimize costs, including de-registering our stock with the SEC and to manage cash flow by curtailing capital expenditures. The key issues for 2004 are to improve operating performance and cash flow with the help of an improving economy, while we invest to grow the value of the businesses and continue to work down the liabilities.”

Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “guidance,” “target” and similar expressions identify forward-looking statements. The Company cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements. Certain risks and uncertainties are identified from time to time in the Company’s reports. Some factors that could cause results to differ materially from those projected in the forward-looking statements include: market conditions, environmental remediation costs, pension expense and funding requirements, liquidation value of assets, and marketability of real estate and the market value and future liquidity of Detrex stock. The Company claims the protection of the safe harbor for forward-looking statements contained in the 1995 Act.