Wilmington, DE, July 10, 2003 - - Hercules Incorporated (NYSE: HPC) today announced that it expects to report earnings for the second quarter ended June 30, 2003 in the range of $0.27 to $0.29 per fully diluted share.  This compares to a loss of $0.10 per fully diluted share for the same period in 2002 and a loss of $0.14 per fully diluted share in the first quarter 2003.

Earnings from ongoing operations for the second quarter of 2003 are expected to be in the range of $0.21 to $0.23 per fully diluted share.  This compares to $0.20 per fully diluted share in the second quarter of 2002 and $0.13 per fully diluted share in the first quarter of 2003.  The First Call consensus estimate for the Company's earnings from ongoing operations is $0.19 per fully diluted share for the second quarter 2003.  If market conditions hold, Hercules also expects to exceed First Call's consensus estimate for the year 2003 of $0.72 per fully diluted share.

Improved earnings in the second quarter were driven by higher sales, improved operating profits, and lower taxes in the quarter.

Net sales in the second quarter 2003 are expected to increase approximately 8% compared to net sales of $437 million for the same period last year.  Net sales growth was driven largely by the Euro's appreciation against the U.S. dollar and also higher prices and higher volumes.  Year-to-date net sales are up approximately 9% compared to the same period in 2002.

"The people of Hercules continue to deliver excellent results in a difficult environment," said Dr. William H. Joyce, Chairman and Chief Executive Officer.  "The Company is well on its way to achieving its stated target of annual double-digit growth in earnings and operating profits from ongoing operations."

Dr. Joyce added, "With another quarter of solid performance, I am particularly proud that we will have delivered seven consecutive quarters of productivity improvements from ongoing operations.  Hercules continues to improve results in spite of higher energy and raw material costs, higher pension expenses, and a difficult pulp and paper marketplace."

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