Akzo Nobel N.V.: Intention to demerge Acordis

Akzo Nobel N.V.: Intention to demerge Acordis Arnhem, the Netherlands, November 27, 1998. - Acordis, the NLG 6 billion Fibres business created as a result of Akzo Nobel's acquisition of Courtaulds, has begun preparation for demerger. "As of today, we have the management and business structures in place. From January 1, 1999, Acordis, while still one hundred percent owned by Akzo Nobel, will be operated as a separate business as if it were an independent company, although of course under Akzo Nobel's responsibility. This process will position Acordis as self sufficient in every respect," said Cees van Lede, Chairman of Akzo Nobel's Board of Management. "We intend to demerge Acordis in the second half of 1999, when Akzo Nobel shareholders will be given a direct share in the spun-off company," he stated. Since acquiring full ownership of Courtaulds, Akzo Nobel has progressed the integration of the Fibres businesses of both companies. Central services - such as Fibres Research & Technology - are at an advanced stage of being separated from the parent organizations for subsequent integration into Acordis. As of the demerger date Acordis will be registered in the Netherlands and will have a two-tier board system with a Supervisory Board and a Board of Management. The business headquarters will be in Spondon, Derby, the United Kingdom. Chairman of the Acordis Supervisory Board will be Gordon Campbell (aged 52), the former Chief Executive of Courtaulds. Other members will be Fritz Fröhlich (56), Deputy Chairman and Chief Financial Officer of Akzo Nobel, and Jean den Hoed (61), former Chief Financial Officer of Akzo Nobel. The Chief Executive Officer of the Acordis Board of Management will be Folkert Blaisse (53), currently Akzo Nobel's member of the Board of Management responsible for Fibres. Mr. Blaisse will step down from the Akzo Nobel Board on December 31, 1998 in order to concentrate fully on the management and development of Acordis. Other members of the Acordis Board of Management will be: Patrick Shanley (44), formerly Courtaulds Finance Director, who will be Chief Financial Officer of Acordis. Peter Rogers (50), formerly a Director of Courtaulds, who will be Deputy Chief Executive Officer and responsible for the Industrial businesses of Acordis which include: Acetate; Aramid Products (Twaron and Fortafil); Fine Chemicals; Industrial Fibres; Membranes and Nonwovens. Peter Wack (51), currently General Manager of Akzo Nobel's Textile Fibres business unit, and David Wilkinson (59), formerly a Director of Courtaulds, who will be Directors responsible for the Textile businesses of Acordis. Mr. Wack will be responsible for: Acrylic Fibres; Viscose Filament (Enka); Other textile related businesses (Polyenka, Sympatex, Enka tecnica); Overseas textile participations (joint ventures) and the remaining operating services in Wuppertal (Germany) and Oberbruch (Germany). Mr. Wilkinson will be responsible for: Acetate Filament (Novaceta); Cellulosic Fibres (Viscose Staple and Tencel); and Speciality Fibers. Henk Molenaar (61), currently Akzo Nobel's Group Technology Director for Fibres, who will be Director responsible for Research & Technology; Engineering; Health, Safety and Environment; and the site services in Emmen (the Netherlands) and Kleefse Waard (the Netherlands). Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, chemicals and fibres. 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 / EURO 10.8 billion) Acordis is a multinational group of businesses, supplying customers throughout the world with man-made fibres and speciality materials for industrial, textile, medical, and hygiene applications. The Acordis group has sales of some NLG 6 billion (approx. USD 3 billion / GBP 2 billion), employs 19,000 people worldwide and has production facilities in Germany, the Netherlands, the United Kingdom, the United States of America, Brazil, Italy, Spain and Poland. - - - Note for the editor / not for publication For more information please contact: Akzo Nobel N.V. John Jennings, tel. +31 26 366 4343 Acordis in the Netherlands Huub Verbeeten, tel: +31 26 366 3346 Acordis in the United Kingdom Donald Anderson, tel: +44 171 612 1293 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/27/19981127BIT00140/bit0001.doc http://www.bit.se/bitonline/1998/11/27/19981127BIT00140/bit0002.pdf