March 28, 2007 09:15 ET

DSM withdraws proposed loyalty dividend program

HEERLEN, NETHERLANDS -- (MARKET WIRE) -- March 28, 2007 --

At the Annual General Meeting of Shareholders (AGM) held this afternoon, DSM announced that the company is withdrawing its proposal to introduce a loyalty dividend program. DSM is now considering other ways of achieving the program's objective. Briefly put, this objective is to reinforce the company's relationship with its shareholders and ensure better and more direct communication. This morning, the Enterprise Section of the Amsterdam Court of Appeals ruled that DSM would not be allowed to put the proposal to the AGM because, according to the Enterprise Section, the proposal was in violation of the principle of equality.

Peter Elverding, chairman of DSM's Managing Board: "Contrary to our expectations, the Enterprise Section of the Amsterdam Court of Appeals has not allowed us to put the proposal to our shareholders. The Enterprise Section is of the opinion that the proposed loyalty dividend program is in violation of the principle of equality. We are therefore withdrawing the proposal. Over the past few months many of our shareholders have indicated that they support our aim of communicating with them in more direct ways. We will therefore continue to pursue this aim."

A number of shareholders have already had their shares registered. DSM will inform them as soon as possible about the new situation. The company will do its utmost to mitigate any inconveniences that may arise.


DSM is active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals. The company develops, produces and sells innovative products and services that help improve the quality of life. DSM's products are used in a wide range of end-markets and applications, such as human and animal nutrition and health, personal care, pharmaceuticals, automotive and transport, coatings and paint, housing and electrics & electronics (E&E). DSM's strategy, named Vision 2010 - Building on Strengths, focuses on accelerating profitable and innovative growth of the company's specialties portfolio. The key drivers of this strategy are market-driven growth and innovation plus an increased presence in emerging economies. The group has annual sales of over EUR 8 billion and employs some 22,000 people worldwide. DSM ranks among the global leaders in many of its fields. The company is headquartered in the Netherlands, with locations in Europe, Asia, Africa, Australia and the Americas. More information about DSM can be found at

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