Catalytica Appoints Dennis Riebe as Chief Financial Officer of Catalytica Energy Systems.

Business Editors

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 24, 2000

Catalytica, Inc. (Nasdaq:CTAL) announced today that Dennis Riebe has joined Catalytica Energy Systems as its chief financial officer.

Mr. Riebe joins Catalytica Energy Systems with over 34 years experience in the gas turbine and aircraft industries. Riebe spent ten years at AlliedSignal Engines where he served in a variety of capacities including chief financial officer of a $600 million division. He was also director of cost management and director of financial planning and analysis. While at AlliedSignal Engines, Riebe was a key member of an acquisition team for a major division and also spearheaded Six Sigma efforts in administrative processes and other quality leadership programs within the organization. Riebe's extensive experience in finance and accounting also includes over 22 years with The Garrett Corporation, a diverse aerospace company. At The Garrett Corporation, he was corporate controller while at the same time serving as a member of the Board of Directors for an international joint venture with the Republic of China (Taiwan). Riebe is a graduate of Purdue University in industrial management and has completed graduate studies in business administration at Arizona State University.

"Dennis' comprehensive experience and wealth of industry knowledge will serve us well as Catalytica Energy Systems spins out as a new public company later this year," stated Craig Kitchen, president and CEO of Catalytica Energy Systems, Inc. "Dennis will play an important role in executing our financial strategy going forward. His extensive financial management of manufacturing operations, as well as his resourceful thinking in business strategy, will make him a valuable addition to our team."

Catalytica, Inc. (www.Catalytica-inc.com) finds new pathways to improve processes --reducing time, waste, and costs. Catalytica announced on August 2, 2000, that DSM will acquire Catalytica's pharmaceuticals business through the purchase of Catalytica, Inc. for approximately $750 million plus the assumption of debt, for a total current value of approximately $800 million. The transaction is structured as a merger of a wholly-owned U.S. subsidiary of DSM with Catalytica and a taxable spin-off of the Catalytica Combustion Systems and Catalytica Advanced Technologies businesses as a single entity to Catalytica stockholders. As a result, Catalytica will operate as a subsidiary of DSM and the Catalytica Combustion Systems and Catalytica Advanced Technologies businesses will comprise a stand-alone company that has been named Catalytica Energy Systems, Inc. Both transactions are expected to close before the end of the year.

This news release contains forward-looking statements regarding the Catalytica Energy Systems business and its future performance in its markets. Such forward-looking statements include the prospects for our business, the proposed spin-off of Catalytica Energy Systems, and the merger with DSM, and the ability of Mr. Riebe to contribute to the financial infrastructure of Catalytica Energy Systems. Actual results may differ and such differences may be material from those anticipated in such forward-looking statements. These statements involve risks and uncertainties, including without limitation the ability to complete the spin-off of Catalytica Energy Systems and the merger with DSM, the ability of Catalytica Energy Systems to perform cost-effectively and in a timely manner, and the ability of Mr. Riebe to translate management expertise to Catalytica Energy Systems' financial infrastructure. Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the incurrence of unanticipated events. Investors are encouraged to review Catalytica's preliminary Proxy Statement on Schedule 14-A as filed on September 6, 2000, Form 10K for the year ending December 31, 1999, Form 10Q's for the periods ending March 31 and June 30, 2000 and Catalytica Energy Systems' Registration Statement on Form S-1 as filed on October 16, 2000 with the Securities and Exchange Commission for a discussion of additional factors that could affect Catalytica's and Catalytica Energy Systems' future performance.

Editors' Note: Xonon and Cool Combustion are trademarks of Catalytica.