Catalytica Advanced Technologies and United Catalysts Form Joint Venture.

MOUNTAIN VIEW, Calif. and LOUISVILLE, Ky.--(BUSINESS WIRE)-- Nov. 11, 1998--Catalytica Advanced Technologies, Inc., a subsidiary of Catalytica, Inc. (Nasdaq: CTAL) and United Catalysts Inc., a subsidiary of the Sud-Chemie Group of Munich, Germany, announced today that they have formed a joint venture for the custom manufacturing, process development, and marketing of organometallic catalysts. The new company, Single-Site Catalysts L.L.C., will focus initially on a new class of single-site catalysts employed in the manufacture of polymers, using proprietary synthesis technology previously developed by Catalytica.

Single-Site Catalysts will assist its customers, primarily polyolefin manufacturers, with the commercialization of organometallic single-site catalysts, a recently discovered class of chemical compounds that produces highly controlled polymerization reactions. Organometallic single-site catalysts are used in the development of new grades of plastics, such as polyethylene and polypropylene, to impart desirable qualities such as increased impact strength and toughness, better melt characteristics, and improved clarity in films. Building on the work of Catalytica, the joint venture will provide scaleable process development for these new catalysts enabling their manufacture with high purity specifications designed to enhance the catalysts' performance.

"Catalytica's technology for single-site catalysts is impressive in both innovation and cost-effectiveness," said Bert Knight, President of United Catalysts. "We believe that the joint venture with Catalytica will complement our line of olefin purification catalysts by creating synergies with the new single-site polymerization catalysts that require high purity olefin feeds. Sud-Chemie Group Companies, as a leading provider of olefin catalysts, expects significant benefits from its relationship with Single-Site Catalysts."

Norman R. Smith, President and Chief Executive Officer of Catalytica Advanced Technologies, commented, "The joint venture provides an important opportunity to accelerate the commercialization of proprietary technology developed at Catalytica. By joining with Sud-Chemie through United Catalysts Inc., we are combining Catalytica's proprietary expertise in technology development and in process manufacturing with our partner's strong customer relationships, market knowledge and a worldwide sales and marketing force. We have every reason to believe that we are creating a business venture that has the potential to become a leading supplier of organometallic catalysts."

Catalytica Advanced Technologies and United Catalysts have created a limited liability company that will be owned equally by Catalytica and United Catalysts. Sud-Chemie Group Catalyst Companies, primarily through United Catalysts, will contribute the initial capital as well as marketing and sales through its worldwide organization to the new venture to help expand and accelerate the commercialization activities. Catalytica Advanced Technologies will contribute its proprietary production technology and its expertise in developing and manufacturing single-site catalysts as well as its relationships with its existing customers. Manufacturing of the single-site catalysts for the joint venture will continue to take place at the fine chemical facilities of Catalytica Pharmaceuticals, another Catalytica subsidiary.

Catalytica Advanced Technologies, Inc., a wholly owned subsidiary of Catalytica, Inc. (Nasdaq: CTAL), is engaged in the identification and development of new commercial opportunities for its partners and for its parent, Catalytica, Inc. Catalytica Advanced Technologies researches and develops new applications of specialty catalysts for the improvement and enhancement of industrial processes. Find Catalytica Advanced Technologies on the World Wide Web at http://www.catalytica-inc.com.

United Catalysts Inc. is a subsidiary of Sud-Chemie. Sud-Chemie, a world-wide leader in catalysts, adsorbents and additives and environmental technology, consists of manufacturing and marketing companies on all continents. Sud-Chemie is located on the World Wide Web at http://www.sued-chemie.de.

This news release contains "forward-looking statements" (as defined under securities law) regarding United Catalyst's and Catalytica's future development of a joint venture and competitive position in their markets. These statements involve risks and uncertainty, including without limitation, the ability to complete new development, products, processes, the ability to perform cost-effectively, in a timely manner, product development delays, the ability to market and sell these products and changes in the company's competitive position, the commercialization of organometallic single-site catalysts, the ability to continue manufacturing single-site catalysts for the joint venture at Catalytica's fine chemical facilities, the synergies created by the joint venture, and the ability to expand and accelerate the commercialization of Catalytica Advanced Technologies' proprietary technology. For additional information that could affect the business of Catalytica, readers are encouraged to review Catalytica's Form 10-K for the year ending December 31, 1997 and the Form 10-Q for the period ending June 30, 1998 for a more complete discussion of factors that could affect Catalytica's future performance.