Akzo Nobel acquires ethical pharmaceutical business of Japanese Kanebo

Akzo Nobel acquires ethical pharmaceutical business of Japanese Kanebo Arnhem, the Netherlands, February 4, 1999. - Akzo Nobel N.V. announced today that Organon, a business unit of Akzo Nobel, will acquire the ethical pharmaceutical business of Kanebo Ltd., Tokyo, Japan. Kanebo's ethical pharmaceutical business will be merged with the current operations of Organon in Japan as from March 31, 1999. This locally financed asset deal will comprise research & development, production, sales and distribution. The ethical pharmaceutical business of Kanebo has currently annual sales of NLG 175 million (USD 85 million / GBP 50 million / EUR 79 million / YEN 11 billion), which is comparable to sales of Organon in Japan. Nippon Organon KK will in time be based in Osaka, Japan, and will predominantly focus on gynecology, psychiatry, anesthesiology, urology, cardiovascular and allergy treatments. The acquisition will enable Nippon Organon KK to combine Kanebo's strength through their nationwide network with Organon's innovative research and development pipeline. It will furthermore allow faster development and stronger marketing of new products. The company will employ 870 people in Japan. "This acquisition is fully in line with Akzo Nobel's priority to build up its pharmaceutical business worldwide. It should accelerate the development and strengthen the introduction of Organon's R&D products in Japan," said Paul Brons, Akzo Nobel's Board Member responsible for the pharmaceutical business. "We are pleased that after working for many years with Kanebo on joint development projects, we now have the opportunity to acquire the ethical pharmaceuticals business of Kanebo and ensure a successful future using our mutual knowledge." The joint operation of Organon and Kanebo's ethical pharmaceutical business will further strengthen Organon's position in gynecology, psychiatry, urology and the allergy field. Organon will obtain a new product line in allergy: an important and increasing segment in Japan, which could be further internationalized. The new, enlarged R&D capacity in Japan will allow the development of more Organon/Organon Teknika products simultaneously. Kanebo Ltd., established in 1887, has the following divisions: cosmetics, toiletries, pharmaceuticals, fashion, fibers and new materials. The company is listed on the Tokyo Stock Exchange. The pharma division, established in 1966, has become a unique middle sized pharmaceutical producer and covers prescription medicines (western and traditional herbal medicines), over the counter products (mainly traditional herbal medicines) and others (medical supplies). Organon, a business unit within Akzo Nobel's Pharma Group, develops and produces pharmaceutical products in fields such as gynecology, psychiatry, athero-thrombosis, and auto-immune diseases. Major product groups are oral contraceptives, infertility treatments, and preparations for menopausal complaints, depression, and psychosis. Organon employs almost 10,000 people worldwide, of which more than 1,500 are working in R&D. Year after year, around 16.5 percent of Oganon's sales income is invested in its drug discovery and development programs. Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, chemicals and fibers. The fibers businesses, now known as Acordis, will be demerged in the course of the second half of 1999. The company currently employs some 87,500 people in more than 60 countries. Consolidated sales for 1997 totaled NLG 24.1 billion (USD 12 billion / GBP 7.5 billion/ EUR 10.8 billion). Financial results for 1998 will be announced on February 22, 1999. - - - Internet: http://www.organon.com/index2.html http://www.akzonobel.com Note for the editor / not for publication Fore more information please contact: Akzo Nobel N.V. Eric P.D. Heres, tel.+31 26 366 45 11 NV Organon Helma van Leeuwe-Bak, tel.+31 412 66 29 47 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/04/19990204BIT00190/bit0001.doc http://www.bit.se/bitonline/1999/02/04/19990204BIT00190/bit0002.pdf