Intervet to divest part of feed additives business

Arnhem, the Netherlands, June 7, 2005 – Akzo Nobel’s animal healthcare business, Intervet, has agreed to divest some of its feed additives activities to Bulgarian company Biovet®. Both parties have agreed not to disclose financial details.

Scheduled to be finalized on July 31, the agreement—which is subject to various corporate and governmental approvals—concerns the sale of Intervet’s Sacox®, Salocin®, Flavomycin®, Gainpro®, Hostazym® and Stenorol® products. “These activities no longer fit in with our core business operations and have become distanced from Intervet’s portfolio from a strategic perspective,” explained Akzo Nobel Board Member Toon Wilderbeek. Added Intervet President, Ruurd Stolp: “Biovet is a leading European manufacturer and marketer of medicated and nutritional feed additives and we expect that within their business focus, our product line will be better positioned to get the necessary support to ensure a successful and profitable future.” Commenting on the deal, President of Biovet, Kiril Domuschiev, said that his company’s investment would open up exciting prospects for the future. “The distribution and registration rights, intellectual property, trademark and know-how of these sections of Intervet’s feed additive business provide compelling opportunities for our customers and our business. Intervet’s products will complement the Biovet portfolio and we are excited about the opportunities deriving from this investment.” ---