Akzo Nobel Buys 55% of Astral, Decorative Coatings Market Leader in Tunisia

Akzo Nobel Buys 55% of Astral, Decorative Coatings Market Leader in Tunisia Arnhem, the Netherlands, August 20, 1998 - Akzo Nobel has acquired a 55% stake in the Tunisian decorative coatings company Société Tunisienne de Peintures Astral, bringing its total shareholding to 60%. Financial terms were not disclosed. "The Tunisian market for decorative paints is attractive and growing, and Astral has an excellent position," says Rinus Rooseboom, General Manager of Akzo Nobel Decorative Coatings. "Astral Tunis will also, together with our Moroccan operation provide Akzo Nobel with a good base for further expansion into Northern Africa." Astral Tunis and Akzo Nobel have had close contacts over the last 15 years via brand licenses, technical licenses, and support. Astral is the Tunisian market leader in decorative (architectural) paints and has about 155 employees. Annual sales amount to around NLG 40 million with good profitability. The company's products are marketed under the well-known brand name Astral, an Akzo Nobel brand used in France and Morocco. Akzo Nobel, headquartered in the Netherlands, is a market- driven and technology-based company, serving customers throughout the world with healthcare products, coatings, chemicals, and fibers. The company employs 70,000 people and has activities in more than 60 countries. In 1997, consolidated sales aggregated NLG 24.1 billion (USD 12 billion). On April 20, 1998, Akzo Nobel made a recommended cash offer for Courtaulds plc in the U.K., and subsequently on August 7, 1998, announced ownership of 92.3% of Courtaulds ordinary shares. The Coatings activities in 1997 represented NLG 8,4 billion, or 35% of total sales. Akzo Nobel is a world leading producer of paints, finishes, stains, inks and synthetic resins for industrial applications, professional painters, and the do-it- yourself sector. - - - Note for the editors / not for publication: For more information please contact: Mr. Rinus Rooseboom, Decorative Coatings South, Tel. +31 71 308 3371