Cytec and DSM Announce Termination of Melamine Joint Venture.

WEST PATERSON, N.J. -- Cytec Industries Inc. (NYSE:CYT) and Royal DSM N.V. announced today that agreement had been reached for the early termination of their 50/50 manufacturing joint venture American Melamine Industries ("AMEL") as well as the dismissal of all legal action between the parties concerning this joint venture.

Upon closing of the transaction, which is expected on August 1, 2006, Cytec will assume 100% ownership of the assets and liabilities of AMEL and receive $7.4 million (approximately EUR 5.9 million) for releasing all past and future obligations under various partnership agreements.

David Lilley, Cytec Chairman, President and Chief Executive Officer stated, "We are pleased to have entered into this latest agreement with DSM, our long-term partner in melamine manufacturing. Since being formed in 1986, we have worked closely with DSM and very much respect their decision to end our joint venture. We will continue to operate the melamine plant for both our internal use and sale to third party customers." Commenting on Cytec's earnings, Lilley stated, "The payment to be received roughly approximates cost reimbursements which we had expected to receive from DSM from mid-year through year-end and thus the receipt of this payment does not materially impact our most recent earnings forecast dated July 20, 2006."

Jan Zuidam, DSM Deputy Chairman stated, "We are also pleased to have worked out an amicable agreement with Cytec. We have a long standing relationship with Cytec encompassing many business areas and we look forward to continue working with them. It goes without saying that we will continue to serve our melamine customers in the Americas in the same way as before from our other plants in the world."

Corporate Profiles

Cytec Industries Inc. is a global specialty chemicals and materials company focused on developing, manufacturing and selling value-added products with pro-forma sales in 2005 of approximately $3.2 billion. Our products serve a diverse range of end markets including aerospace, adhesives, inks, automotive and industrial coatings, chemical intermediates, mining, plastics and water treatment. We use our technology and application development expertise to create chemical and material solutions that are formulated to perform specific and important functions in the finished products of our customers.

DSM is active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals. The company creates innovative products and services that help improve the quality of life. DSM's products are used in a wide range of end markets and applications such as human and animal nutrition and health, cosmetics, pharmaceuticals, automotive and transport, coatings, housing and electrics & electronics (E&E). DSM's strategy, named Vision 2010 - Building on Strengths, focuses on accelerating profitable and innovative growth of the company's specialties portfolio. Market-driven growth, innovation and increased presence in emerging economies are key drivers of this strategy. The group has annual sales of over EUR 8 billion and employs some 22,000 people worldwide. DSM ranks among the global leaders in many of its fields. The company is headquartered in the Netherlands, with locations in Europe, Asia, Africa and the Americas. More information about DSM can be found on www.dsm.com.