Carbon Nanotechnologies Inc. and DSM to Develop Next Generation Performance Materials from Single-Wall Carbon Nanotubes.

Business Editors

HOUSTON & HEERLEN, Netherlands--(BUSINESS WIRE)--Jan. 28, 2003

Carbon Nanotechnologies Incorporated (CNI) and DSM Venturing & Business Development (DSM V&BD) today announced that they will form a strategic alliance to develop new and improved performance materials by incorporating CNI's breakthrough single-wall carbon nanotubes into DSM's performance materials.

Single-wall carbon nanotubes (SWNTs), also known as Buckytubes, are cylindrical carbon molecules that are one billionth of a meter in diameter. At 100 times the strength of steel, this polymer of pure carbon is the strongest, toughest, stiffest material known. SWNTs also can conduct electricity and heat better than currently available materials.

DSM's performance materials include polymer fibers and films based on ultra-high molecular weight polyethylene (Stamylan UH(R)). The cooperation with CNI aims to further optimize mechanical properties such as strength, stiffness, energy absorption, abrasion and wear.

Bob Gower, CEO of CNI, said, "This relationship with DSM marks another important step on our path towards fully commercializing single-wall carbon nanotubes. DSM is clearly a world leader in high-performance fibers and films. We believe that single-wall carbon nanotubes will lead to a new generation of DSM products."

Robert Kirschbaum, vice president Innovation at DSM Venturing & Business Development, adds, "Our expertise in performance materials combined with CNI's expertise in single-wall carbon nanotubes will result in materials that will grow our existing markets and may create new markets that are beyond our imagination."

Carbon Nanotechnologies Inc.

CNI was founded in early 2000 to commercialize the scientific breakthroughs in carbon nanotechnology made at Rice University under the direction of Nobel prize-winning scientist Dr. Richard Smalley. CNI has the exclusive license to key technology developed by Dr. Smalley at Rice. The company is actively developing new processes and applications for Buckytubes in its own laboratories and those of industrial collaborators and has become the leading manufacturer of single-wall carbon nanotubes from its pilot plant in Houston. The company expects to be ready to build a commercial production unit to come on stream by the end of 2004.

For more information: www.cnanotech.com

DSM

DSM is active worldwide in life science products, performance materials and industrial chemicals. The group has annual sales of close to EUR 6 billion and employs about 20,000 people at more than 200 sites across the world.

DSM ranks among the global leaders in many of its fields. The company's strategic aim is to grow its sales -- partly through acquisitions -- to a level of approx. EUR 10 billion by 2005. By that time at least 80% of sales should be generated by specialties, i.e., advanced chemical and biotechnological products for the life science industry and performance materials. This strategy represents a continuation of the company's ongoing transformation and concentration on global leadership positions in high-added-value activities characterized by high growth and more stable profit levels.

For more information: www.dsm.com

DSM Venturing & Business Development

The mission of DSM Venturing & Business Development is to boost the long-term growth of DSM via business development projects and participations in start-up companies. The portfolio includes internal start-up companies, participations in venture capital funds, direct investments in start-up companies and existing business units such as DSM High Performance Fibers. In addition it prepares exit possibilities for companies that appear to offer insufficient fit with DSM's evolving strategy.

For more information: www.dsm.com/dvbd