DSM Dyneema Opens New Production Line in U.S. and Now Produces Fiber and Unidirectional Bullet-Resistant Material.

Business Editors

GREENVILLE, N.C.--(BUSINESS WIRE)--May 18, 2004

DSM Dyneema, the world's largest producer of high-performance polyethylene fiber, officially opened its first yarn production line today at the U.S. Dyneema facility in Greenville, North Carolina. The production line has a capacity of 600 to 750 tons per annum, depending on product mix. DSM will now produce both fiber and unidirectional bullet-resistant material in the U.S., which DSM Dyneema sees as its second home market.

Although the Greenville site will serve clients globally, DSM Dyneema plans to serve U.S. military requests first, due to the current situation of increased demand for personal security and protection against terrorism in the U.S.

Colonel John Norwood, project manager, soldier equipment of the U.S. Army, who attended the opening ceremony today said, "Initial tests show that Dyneema has excellent performance characteristics and works well with a variety of ceramic tile materials. Opening this plant today expands the U.S. production base for backing material critical to Small Arms Protective Insert (SAPI) production, and enables the U.S. Army to meet or possibly exceed established weight requirements for all SAPI plates."

With global demand for high-performance polyethylene fiber still growing strong, DSM Dyneema has shown its commitment to the market, with a specific focus on North America. "We have taken our responsibility as a global market leader to invest in new capacity", said DSM Managing Board Chairman Peter Elverding today in Greenville. "And in view of this growth pattern that we see in all markets and regions, we are currently exploring further investment plans to meet this growing demand."

Besides the new Dyneema yarn line, DSM Dyneema recently also took two new Dyneema UD lines (producing unidirectional bullet-resistant materials) in operation, one of which is located at the Greenville site, the other in Heerlen, The Netherlands. In the U.S., DSM Dyneema operates three lines, one Dyneema yarn line and two Dyneema UD lines. Over the past period, both UD lines in the U.S. were fully dedicated to producing materials for bullet-resistant cockpit doors for airplanes flying in and to the U.S. These three lines are part of DSM's investment plan amounting to EUR 100 million.

DSM Dyneema

DSM is the inventor and manufacturer of Dyneema(R), the world's strongest fiber. Dyneema is a superstrong polyethylene fiber that is widely used wherever security, strength and lightweight are required. It is used in bulletproof armor and in protective clothing for law enforcement agencies and the military. Dyneema is also a key component in ropes, cables and nets for the fishing, shipping and offshore industries, safety gloves for the metalworking industry and fine threads for sports and medical applications. This remarkable polyethylene fiber is 15 times stronger than steel and, weight-for-weight, is 40 percent stronger than competing aramid fibers. Dyneema floats on water, and is highly resistant to abrasion, moisture, UV rays and chemicals. As a result, it has an almost unlimited range of applications, providing maximum strength and security for minimum weight. Dyneema is available as yarn and in sheet-form. It is produced at the company's facilities in Heerlen (the Netherlands) and Greenville, North Carolina (USA). Due to high demand, production of Dyneema has been and is being substantially increased. DSM Dyneema is the global product and technology leader in HPPE fibers, providing people with maximum protection and security at minimum weight and inconvenience all over the world. The company currently employs some 300 people. The company also participates in a joint venture with Toyobo (Japan) producing Dyneema in Osaka, mainly for the Japanese market.

DSM

DSM is active worldwide in life science and nutritional products, performance materials and industrial chemicals. The company creates innovative products and services that help improve the quality of life. DSM's products are being applied 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). The group has annual sales (pro forma including the recent acquisition - renamed DSM Nutritional Products) of approximately EUR 8 billion and employs in the region of 26,000 people around the world. DSM ranks among the global leaders in many of its fields. DSM is headquartered in the Netherlands, with locations in Europe, Asia and the Americas. More information about DSM can be found at www.dsm.com.