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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 1 &amp;#8211; Basis of Presentation&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;OM Group, Inc. (&amp;#8220;OMG&amp;#8221; or the &amp;#8220;Company&amp;#8221;) is a global solutions provider of specialty chemicals,
   advanced materials, electrochemical energy storage, and technologies crucial to enabling its
   customers to meet increasingly stringent market and application requirements. The Company
   believes it is the world&amp;#8217;s largest refiner of cobalt and producer of cobalt-based specialty
   products.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The consolidated financial statements include the accounts of OMG and its consolidated
   subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The
   Company has a 55% interest in a joint venture (&amp;#8220;GTL&amp;#8221;) that has a smelter in the Democratic Republic
   of Congo (the &amp;#8220;DRC&amp;#8221;). The joint venture is consolidated because the Company has a controlling
   interest in the joint venture. Noncontrolling interest is recorded for the remaining 45% interest.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;On January&amp;#160;29, 2010, the Company completed the acquisition of EaglePicher Technologies, LLC. The
   financial position, results of operations and cash flows of EaglePicher Technologies are included
   in the Unaudited Condensed Consolidated Financial Statements from the date of acquisition.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;These financial statements have been prepared in accordance with U.S. generally accepted accounting
   principles for interim financial information and the instructions to Form 10-Q and do not include
   all of the information and footnotes required by U.S. generally accepted accounting principles for
   complete financial statements. In the opinion of management, all adjustments (consisting of normal
   recurring accruals) considered necessary for a fair presentation of the financial position of the
   Company at June&amp;#160;30, 2010 and the results of its operations and its comprehensive income (loss)&amp;#160;for
   the three and six months ended June&amp;#160;30, 2010 and 2009 and the results of its cash flows and changes
   in total equity for the six months ended June&amp;#160;30, 2010 and 2009 have been included. The balance
   sheet at December&amp;#160;31, 2009 has been derived from the audited consolidated financial statements at
   that date but does not include all of the information or notes required by U.S. generally accepted
   accounting principles for complete financial statements. Past operating results are not
   necessarily indicative of the results which may occur in future periods, and the interim period
   results are not necessarily indicative of the results to be expected for the full year. These
   Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the
   consolidated financial statements and notes thereto included in the Company&amp;#8217;s Annual Report on Form
   10-K for the year ended December&amp;#160;31, 2009.
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