CP Kelco Expands Pectin Production Capacity, Reinforcing Commitment to Customers and Communities.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 21, 2003

As the world's premier pectin manufacturer, CP Kelco announces plans to increase capacity in its Skensved, Denmark and Limeira, Brazil facilities. Expansions are scheduled for completion in mid-2003 and 2005, respectively.

"Our investments to expand pectin capacity represent CP Kelco's dedication to producing the highest performing products on the market and having them available when our customers need them," said Martin Sapone, pectin business director. "As the world leader in pectin, we are always looking for ways to improve product performance and bring our industry-leading technology innovation to the marketplace. The work we're doing in Skensved and Limeira allows us to do that. It also demonstrates our commitment to those great communities and their local people who are so important to our business success."

CP Kelco's investment in Skensved supports production of Low Methoxyl Amidated (LMA) specialty pectin. Upon completion mid-year, Skensved is expected to achieve a 15% increase in overall capacity for LMA products. While Skensved is focusing on LMA capacity expansion, the focus in Limeira is on High Methoxyl (HM) pectin. When the project wraps up in 2005, the company expects to at least double HM capacity.

"Our work in Skensved helps support the growing demand for LMA pectin and it brings added capabilities to deliver new, valued added products to our customers," said Sapone. "Our capacity expansion in Limeira positions us to serve the high growth regions of our HM business, namely Eastern Europe and Asia."

According to Jan Bogers, vice president, manufacturing, Europe, Latin America and Asia, these expansions also reinforce CP Kelco's ongoing goal to improve pectin sourcing flexibility.

"We remain committed to investing in our pectin business to improve technology and production efficiency in our Limeira, Grossenbrode (Germany) and Skensved plants," said Bogers. "The capacity expansions in Skensved and Limeira are part of an overall plan to achieve much greater flexibility in product sourcing between all three of our pectin facilities for the long term."

About CP Kelco:

CP Kelco is the global leader in the hydrocolloids (thickeners and stabilizers) market, with leading positions in xanthan gum and pectin and a strong position in carrageenan. The company has more than 2,000 customers in over 100 countries, with facilities in North America, Europe, Asia and Latin America. Formed in 2000 by the combination of the Copenhagen Pectin/Food Gums Division of Hercules Incorporated and the Kelco Biopolymers business of Monsanto Company, CP Kelco's principal share-holders are Lehman Brothers Merchant Banking Partners II L.P. and Hercules Incorporated (NYSE: HPC). For more information on the company, please visit www.cpkelco.com.