SQM Reports Earnings for the First Half of 2008

SANTIAGO, Chile, Aug. 12 /PRNewswire-FirstCall/ — Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the first half of 2008 of US$190.5 million (US$0.72 per ADR), an increase of 102.8% with respect to the same period of 2007, when earnings totaled US$93.9 million (US$0.36 per ADR). Operating income reached US$242.3 million (30.8% of revenues), 83.2% higher than the US$132.3 million (23.7% of revenues) recorded during the first six months of 2007. Revenues for the first half of 2008 totaled US$787.1 million, representing growth of 40.9% over the US$558.8 million reported in the first half of 2007.

The Company also announced year-over-year earnings growth of 146.6% for the second quarter of 2008, reporting quarterly net income of US$125.7 million (US$0.48 per ADR) compared to the 2007 figure of US$51.0 million (US$0.19 per ADR). Operating income for the second quarter reached US$156.1 million, 112.5% higher than the US$73.5 million recorded for the same period of 2007. Revenues totaled US$460.8 million, an increase of approximately 43.3% with respect to the second quarter of 2007, when revenues amounted to US$321.6 million.

Patricio Contesse, SQM’s Chief Executive Officer, stated, “The earnings growth we have reported for both the second quarter and the first half was the result of worldwide increases in fertilizer prices, as well as solid demand growth and sales volumes that were higher than we originally expected in our iodine and lithium businesses.” He went on to say, “Margins on our specialty plant nutrients have risen considerably, as a result of favorable pricing conditions together with our strategy of targeting markets that deliver the highest returns. However, rising costs continue to have an impact, mainly due to higher energy costs. On balance, we are optimistic about the outlook for the second half of 2008, and our efforts are focused on achieving third and fourth quarter results that surpass the second quarter results we have just reported.”

For the complete version of this press release, please visit our Web site: http://www.sqm.com/.

SQM is an integrated producer and distributor of specialty plant nutrients, iodine and lithium. Its products are based on the development of high quality natural resources that allow the Company to be leader in costs, supported by a specialized international network with sales in over 100 countries. SQM’s development strategy aims to maintain and strengthen the Company’s world leadership in its three core businesses: Specialty Plant Nutrition, Iodine and Lithium.

   For further information, contact:   Patricio Vargas, 56-2-4252274 / patricio.vargas@sqm.com   Carolyn McKenzie, 56-2-4252074 / carolyn.mckenzie@sqm.com   

Statements in this press release concerning the Company’s business outlook, future economic performances, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth, together with other statements that are not historical facts, are “forward-looking statements” as that term is defined under Federal Securities Laws.

Any forward-looking statements are estimates, reflecting the best judgment of SQM based on currently available information and involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Risks, uncertainties, and factors that could affect the accuracy of such forward-looking statements are identified in the public filing made with the Securities and Exchange Commission, and forward-looking statements should be considered in light of those factors.

SQM

CONTACT: Patricio Vargas, +011-56-2-4252274, patricio.vargas@sqm.com, orCarolyn McKenzie, +011-56-2-4252074, carolyn.mckenzie@sqm.com, both of SQM

Web site: http://www.sqm.com/