Carbo Ceramics (CRRTQ) 8-K Carbo Ceramics Inc. Announces Second Quarter Earnings

Exhibit 99.1

Final — for immediate release	CONTACT: PAUL VITEK, CFO
	(972)401-0090
	Release #07-08

CARBO CERAMICS INC. ANNOUNCES SECOND QUARTER EARNINGS

Conference Call Scheduled for Today, 10:00 a.m. Central Time

• Quarterly revenues of $77.9 million, up 6 percent versus prior year

• Record proppant sales volume in the U.S.

• Quarterly revenues from fracture and reservoir diagnostic services of $10.6 million, up 36 percent versus prior year

• Continued progress in Russian manufacturing and sales activities

Irving, Texas (July 26, 2007) — CARBO Ceramics Inc. (NYSE: CRR) today announced quarterly net income of $12.9 million, or $0.53 per diluted share, on revenues of $77.9 million for the quarter ended June 30, 2007. For the six months ended June 30, 2007, the company reported net income of $26.2 million, or $1.07 per diluted share, on revenues of $161.9 million.

President and CEO Gary Kolstad commented on the quarter’s results stating, “We are pleased with our performance in the quarter. Record proppant sales volume in the U.S. and an impressive 36 percent increase in revenues from Pinnacle Technologies resulted in a 6 percent increase in total revenues compared to last year’s second quarter. This revenue growth was achieved despite the lowest quarterly level of drilling activity in Canada since 1999. Our record U.S. results clearly demonstrate that, even in times of declining natural gas prices, our clients benefit from the increase in production that results from the higher conductivity of our ceramic proppant. We were also very happy with the progress of our operations in Russia. There is strong interest in our product in this growing market and our manufacturing facility is increasing production according to plan and producing excellent quality product.”

Second quarter results

The increase in revenues compared to last year’s second quarter was attributable to a 1 percent increase in the volume of proppant sold, a 1 percent increase in the average selling price of the company’s proppant, and a 36 percent increase in revenue from Pinnacle Technologies (“Pinnacle”). Consolidated revenues for the second quarter of 2007 included $10.6 million from Pinnacle compared to $7.8 million for the second quarter of 2006. The increase in revenue in the company’s proppant business segment was due to record sales volume in the U.S., a continued resurgence in Mexico, and a 7 percent increase in overseas sales volume. Pinnacle’s growth was driven by increased global demand for fracture mapping and reservoir monitoring services, software products, consulting services, and an increase in non-oilfield monitoring revenues attributable to the acquisition of Applied Geomechanics, Inc. in April 2007.

Worldwide proppant sales totaled 207 million pounds for the quarter. Increased proppant sales volume in the U.S. and Mexico offset a decline in Canadian sales as a result of the lowest quarterly level of drilling activity in Canada since 1999. Sales volume in Canada during the quarter declined 66 percent compared to the same period a year earlier. Overseas sales volume increased 7 percent compared to last year’s second quarter with particularly strong sales in Russia where we began to deliver product from our new manufacturing facility.

Operating profit for the second quarter of 2007 increased $1.1 million, or 6 percent, compared to the previous year’s second quarter. The increase in operating profit compared to the second quarter of 2006 was due primarily to the increase in revenue and margins in the fracture and reservoir diagnostic

CARBO Ceramics 2007 Second Quarter Release
July 26, 2007
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business as fixed costs in this service business were spread over a significantly higher revenue base. While revenue in the proppant segment increased from the prior year, operating profit margins in this segment decreased due to increased costs in connection with the addition of the new manufacturing facility in Russia, including increased overhead expenses and costs directly related to the start-up of the facility and higher costs for raw materials for the production of high strength proppants. Selling, general and administrative expenses for the second quarter of 2007 increased $0.7 million compared to the same period last year due to planned increases in global staffing in support of enhanced marketing activities and administrative expenses necessary to support higher sales activity in an expanding global market.

Net income for the second quarter of 2007 was unchanged compared to the second quarter of 2006 as the increase in operating profit was offset by decreased interest income due to lower cash balances following the company’s significant investment in expanding manufacturing capacity over the past two years and an increase in income tax expense compared to the prior year. Second quarter 2006 results benefited from a reduction of net deferred income tax liabilities to reflect the impact of a state tax law change in Texas.

Technology highlights

Technology highlights for the second quarter included:

• CARBOEconoprop^® lightweight ceramic proppant was successfully utilized to increase production rates when replacing sand in a shallow gas field in West Texas.

• Pinnacle released FracproPT 2007, the industry-leading hydraulic fracturing software model. The new release incorporates advanced features including “quick” modes for Minifrac Analysis and Fracture Design (FracproXPRESS), new fluid and proppant library data, full Vista compatibility, and expanded log handling capabilities.

• Pinnacle initiated the use of long term surface tiltmeter monitoring services and satellite-based Interferometric Synthetic Aperture Radar (InSAR) data for a CO2 sequestration project in the San Juan Basin of New Mexico.

• Tiltmeters were utilized on The Plate Boundary Observatory Project (PBO), part of the EarthScope project funded by the National Science Foundation to study the potential for predicting tectonic (earthquake or volcanic) activity across the Western United States.

Future outlook

CEO Gary Kolstad provided input on the future outlook for the company stating, “Natural gas prices in North America have declined in recent weeks and this could have a short term impact on drilling activity in the region. However, we are optimistic about the second half of 2007. International drilling activity remains strong, and we have grown our business in the U.S. despite a reduction in the growth of drilling activity in the past year. Activity in Canada may continue to be depressed in the second half compared to last year, but we expect to see an improvement from the seasonal low experienced in the second quarter. In the longer term, we believe the current low levels of drilling activity in Canada combined with the decline rates in natural gas wells will result in an increase in drilling in this region. In Russia, our manufacturing facility is ramping up as planned and we see strong interest in our products and services in the region. Prior to the end of this year, we expect to complete construction of our second production line in Toomsboro, Georgia, increasing our global manufacturing capacity to approximately 1.3 billion pounds per year. Over the balance of this year, we will continue to focus on increasing our global marketing activities and continue the research and development activities necessary to address the needs of our clients.”

As previously announced, a conference call to discuss the company’s second quarter and year-to-date results has been scheduled for today at 10:00 a.m. central time (11:00 a.m. eastern). To participate in the call, please dial 877-836-3879 and refer to the “CARBO Ceramics Conference Call.” International callers should dial 706-679-7469. The call can also be accessed live or on a delayed basis via the company’s Web site, www.carboceramics.com.

CARBO Ceramics Inc., based in Irving, Texas, is the world’s leading manufacturer of ceramic proppants and supplier of fracture diagnostic services for use in the hydraulic fracturing of natural gas and oil wells.

CARBO Ceramics 2007 Second Quarter Release
July 26, 2007
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The statements in this news release that are not historical statements, including statements regarding our future financial and operating performance, are forward-looking statements within the meaning of the federal securities laws. All forward-looking statements are based on management’s current expectations and estimates, which involve risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are changes in overall economic conditions, changes in demand for our products, changes in the demand for, or price of, oil and natural gas, risks of increased competition, technological, manufacturing and product development risks, loss of key customers, changes in government regulations, foreign and domestic political and legislative risks, the risks of war and international and domestic terrorism, risks associated with foreign operations and foreign currency exchange rates and controls, weather-related risks and other risks and uncertainties described in our publicly available filings with the SEC. We assume no obligation to update forward-looking statements, except as required by law.

- tables follow -

	Three Months Ended				Six months Ended
	June 30				June 30
	2007		2006		2007		2006
	(In thousands except per share data)				(In thousands except per share data)
Revenues	$	77,918	$	73,485	$	161,889	$	147,763
Cost of sales		48,237		46,095		103,491		93,007
Gross profit		29,681		27,390		58,398		54,756
Selling, general & administrative		9,508		8,793		18,980		16,266
Start-up costs		543		70		967		421
Operating profit		19,630		18,527		38,451		38,069
Interest income, net		133		487		352		924
Other, net		238		349		812		687
Income before income taxes		20,001		19,363		39,615		39,680
Income taxes		7,120		6,501		13,435		13,834
Net income	$	12,881	$	12,862	$	26,180	$	25,846
Earnings per share:
Basic	$	0.53	$	0.53	$	1.08	$	1.07
Diluted	$	0.53	$	0.53	$	1.07	$	1.06
Average shares outstanding:
Basic		24,364		24,274		24,346		24,259
Diluted		24,478		24,401		24,459		24,393
Depreciation and amortization	$	6,084	$	4,703	$	11,267	$	9,315
Selected Balance Sheet Information

	June 30, 2007		Dec. 31, 2006
	(in thousands)
Cash, cash equivalents and short-term investments	$	10,782	$	32,473
Total other current assets		118,054		111,452
Property, plant and equipment, net		261,249		231,748
Intangible and other assets, net		8,126		7,152
Total assets		421,424		404,665
Total current liabilities		27,176		34,246
Deferred income taxes		28,979		27,560
Shareholders’ equity		365,269		342,859
Total liabilities and shareholders’ equity		421,424		404,665