Negotiations for acquisition Hoechst veterinary business completed

Negotiations for acquisition Hoechst veterinary business completed: Akzo Nobel / Intervet number four in animal healthcare Arnhem, the Netherlands, November 29, 1999. - Intervet, the veterinary business unit of Akzo Nobel, moved to the number four position in animal healthcare, after Akzo Nobel signed a contract on Friday to buy Hoechst Roussel Vet, the veterinary business of Hoechst AG. Closing of the deal follows the European Commission's approval of the transaction last week. The acquisition effectively doubles the size of Intervet, with combined sales of both operations totaling approximately EUR 800 million (in 1998). With this acquisition Akzo Nobel has strengthened and broadened the basis for one of its best performing Pharma business units. Akzo Nobel will pay approximately EUR 655 million for Hoechst Roussel Vet. Intervet, headquartered in Boxmeer, the Netherlands, with sales of some EUR 350 million, is focused on the research and development, manufacturing and marketing of veterinary products and is an active player in the worldwide animal health market. Products include vaccines for the prevention of infectious diseases; antibiotics, and endocrine products for fertility management. All of these products are intended for use in a variety of animal species including poultry, pigs, cattle, sheep and goats, horses, fish and pets. Intervet operates globally with its own marketing organizations. "Intervet is now entering the global league of the top players in the animal healthcare market", said Paul K. Brons, Member of the Board of Management responsible for Akzo Nobel's Healthcare business. "Intervet has outperformed veterinary market growth and profitability in recent years based on the introduction of innovative high-quality products with a focus on biologicals. Now it will have a well- balanced product range, both biologicals and pharmaceuticals, and a worldwide distribution coverage. Since innovation is key in the animal health industry and the new company has substantially increased its critical mass for research funding, Intervet will be in the position to further grow by aggressively investing in new product development." The acquisition includes all production and research and development facilities and some 2,400 employees worldwide. Hoechst Roussel Vet provides veterinarians with anti-parasitics, anti-infectives and vaccines, as well as a number of specialty products for both pets and livestock, and feed additives for livestock. Operations are conducted worldwide: 50 percent of sales are in Europe/Africa, 45 percent in the Americas and some 5 percent in Asia/Australia. Research and development is performed in all 5 continents. "Bringing HR Vet and Intervet together creates one of the leading companies in animal health business. Our presence will be increased in all important markets, especially in the USA," said Toon Wilderbeek, General Manager of Intervet. "The new company will build upon an already strong position in vaccines for key species. In the pharmaceuticals segment we will focus on anti-infectives and anti-parasitics. We will have strong niche positions in the growth and reproductive hormone areas, which will remain key components in the business. The new company will also have a focus on feed additives. The strengthened product line in the companion animal market will drive further growth in this competitive segment." Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, chemicals, and fibers. The company currently employs approximately 83,000 people in almost 70 countries. Consolidated sales for 1998 totaled EUR 12.5 billion (NLG 27.5 billion, USD 13.8 billion, GBP 8.4 billion). The financial results for the year 1999 will be announced on February 25, 2000. - - - Internet: http://www.akzonobel.com http://www.intervet.com Note for the editor / not for publication Fore more information please contact: John Jennings, Akzo Nobel NV, tel. +31 26 366 43 43 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/29/19991129BIT00070/bit0001.doc http://www.bit.se/bitonline/1999/11/29/19991129BIT00070/bit0002.pdf