Akzo Nobel's figures follow new IFRS rules

Arnhem, the Netherlands, December 14, 2004 – Akzo Nobel has published restated financial figures for the first three quarters of 2004 in preparation for a shift to reporting under new international standards from the beginning of next year. The adjusted figures – which have no effect on the underlying cash flows of the businesses – result in an increase in net income and a decline in shareholders’ equity.

As of January 1, 2005, the Company will have to prepare its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). Akzo Nobel currently prepares its financial statements under Generally Accepted Accounting Principles in the Netherlands (NL GAAP). But because of the transition to the new system, the “old” figures for this year have been restated according to IFRS reporting standards to ensure that comparative 2004 figures are available. “The implementation of IFRS was a major effort, even though we were already partly applying similar NL GAAP and US GAAP standards,” explained Akzo Nobel CFO Rob Frohn. “In our detailed report we provide a bridge between both systems. This provides a transparent view on the impact of IFRS on our Company.” The changes in the restated figures are mainly attributable to accounting for pensions and other post-retirement benefits, different recognition of deferred taxes on inter-company profit, deferred recognition of the payment received from Pfizer for the asenapine cooperation, and accounting for goodwill. - - -