Akzo Nobel Assumes Full Ownership of Akcros Chemicals.

ARNHEM, The Netherlands--(BUSINESS WIRE)--Oct. 19, 1998--Akcros Chemicals, the former joint venture between Akzo Nobel nv and Elementis plc is now a full-fledged business unit within Akzo Nobel's Chemicals Group. The two parties completed the remaining formalities, which confirm the purchase of the outstanding 50% share of the Akcros business by Akzo Nobel in early October.

"We are pleased that this transaction has been completed and that we can now concentrate on growing this NLG 600 million a year business, with leading positions serving key markets like the plastics-processing and coatings industries, into a world-class player" said Rudy M.J. van der Meer, the member of Akzo Nobel's Board of Management responsible for Chemicals.

"The Akcros business fits our strategy of focusing on and growing selected segments of the chemical industry, based upon market share, lowest cost, superior technologies and emphasizing the value for money concept for both customer and supplier", he added.

As an Akzo Nobel business unit, the Akcros Chemicals name will be retained and its administrative centre will remain in Eccles, Manchester, in the United Kingdom.

Akzo Nobel has already announced its intention to continue to progress the Akcros business vigorously with two strategic investments - a new Phosphite Ester plant in the U.K. and an investment in Stearates and Non-Vinyl products in Roermond-Oost, the Netherlands.

Akcros Chemicals is a market leader in plastic additives, UV-EB curing chemicals and other performance chemicals. Among the main products are PVC stabilizers for rigid applications. The company also makes special additives for non-vinyl polymers, radiation-curing materials for the coatings industry and polysulphide sealants. Annual sales amount to some NLG 600 million (USD 300 million, GBP 200 million). With headquarters in Eccles, near Manchester, Akcros employs about 1,100 people. The company has manufacturing sites in the United Kingdom, the Netherlands, Germany and the United States. It sells its products worldwide.

Akzo Nobel, headquartered in Arnhem, The Netherlands, serving customers throughout the world with healthcare products, coatings, chemicals, and fibers. The company employs 88,000 people and has activities in 60 countries. In 1997, consolidated sales aggregated $12 billion (24.1 billion NLG). In North America the company employs more than 9,000 employees and has annual sales of approximately $3 billion. The company's ADRs are traded on NASDAQ under the AKZOY symbol.