February 26, 2010 02:26 ET

DSM and MCC sign contracts to exchange polycarbonate and polyamide businesses

HEERLEN, NETHERLANDS--(Marketwire - February 26, 2010) -

DSM Engineering Plastics, a business group of the Netherlands-based Life Sciences and Materials Sciences company Royal DSM N.V., today announces that it has signed the contracts with Mitsubishi Chemical Corporation (MCC) enabling DSM to acquire MCC's Novamid® polyamide business in exchange for DSM's Xantar® polycarbonate business.

In May 2009 both companies already announced the signing of a memorandum of understanding for the intended swap. The transaction is subject to various external approvals. Closing is expected in Q2 2010.

For both companies the businesses they will add to their portfolios as a result of the intended swap of activities provide a strong strategic fit. DSM Engineering Plastics will be able to further reinforce its position as one of the globally leading producers of polyamide engineering plastics and expand its position in Japan, an important market where innovation and sustainability are driving growth.

A number of key employees of DSM's polycarbonate business will transfer to MCC. A number of employees of MCC will be seconded to DSM. It is also envisaged that MCC will establish an R&D unit at the Chemelot Research and Technology campus in Geleen (Netherlands).

DSM Engineering Plastics

DSM Engineering Plastics is one of the world's leading suppliers of quality engineering thermoplastics providing customer value through sustainable solutions that reflect the DSM People, Planet and Profit strategy. DSM Engineering Plastics delivers innovative opportunities for customers who design or produce electrical applications, electronic equipment, cars, barrier packaging films as well as many mechanical and extrusion applications. These markets are served with a broad portfolio of high performance materials including Akulon® 6 and 66 polyamides, Arnitel® TPC, Arnite® PBT and PET polyesters, Yparex® extrudable adhesive resins, and Stanyl® high heat 46 polyamides. Most recently, DSM Engineering Plastics has introduced the first new polymer of the 21st century: Stanyl® ForTii™ and EcoPaXX™, a bio- based, high performance engineering plastic. DSM Engineering Plastics had sales in 2009 of EUR 648 million with 1600 employees employed worldwide. More on:

DSM - the Life Sciences and Materials Sciences Company

Royal DSM N.V. creates solutions that nourish, protect and improve performance. Its end markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM manages its business with a focus on the triple bottom line of economic prosperity, environmental quality and social equity, which it pursues simultaneously and in parallel. DSM has annual net sales of about EUR 8 billion and employs some 22,700 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More

For more information:

 DSM Corporate Communications       DSM Investor Relations
 Herman Betten                      Hans Vossen
 tel.+31 (0) 45 5782017             tel. +31 (0) 45 5782864
 fax +31 (0) 45 5740680             fax +31 (0) 10 4590275


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