Ripplewood Holdings L.L.C. offers EUR 230 million for Akzo Nobel Phosphorus Chemicals business

Ripplewood Holdings L.L.C. offers EUR 230 million for Akzo Nobel Phosphorus Chemicals business Arnhem, the Netherlands, and New York, April 26, 2004 - Akzo Nobel has received an offer from Ripplewood Holdings L.L.C. for the sale of its Phosphorus Chemicals business for EUR 230 million free of cash and debt. The intention to divest this business was announced in September 2003, with the purpose of creating more financial room to maneuver for the Company. Closing of the transaction is expected to be completed in the second quarter of 2004. The deal involves all assets and all current employees of the business. Employee representative bodies and unions have been informed and consultation procedures will commence shortly, where applicable. The required regulatory approvals will be sought as and when appropriate. Hans Wijers, Chairman of Akzo Nobel's Board of Management, said: "This is a further stage in our program to create more financial room to maneuver for the Company and we are pleased with the speed at which we have been able to proceed. The offer fully reflects the value of this excellent business. I am confident that the new owner will continue to develop its value, both in the interests of the business and their new employees." Phosphorus Chemicals is an industry leader relative to the worldwide manufacture, distribution and service of organophosphorus flame retardants, plasticizers, and lubricants. Applications include engineered resins, plastics, urethane foams, oil additives, fire-resistant fluids and turbine oils. Products are supplied worldwide from production locations in Germany (Bitterfeld) and the United States (Gallipolis Ferry, West Virginia). The business has approximately 280 employees worldwide and had annual revenues of approximately EUR 187 million in 2003. Ian Snow, a Managing Director of Ripplewood, said: "We are very pleased with the acquisition of Akzo Nobel's Phosphorus Chemicals business. This transaction will be our second in the specialty chemicals sector, following our exit late last year from a successful investment in KRATON Polymers, which was purchased in 2001 from Royal Dutch Shell. We look forward to achieving similar success with this business." John Georges, an Industrial Partner of Ripplewood, said: "We are excited about the growth prospects for the Phosphorus Chemicals business and are impressed by its management team. We look forward to providing the support the business needs to continue to grow and strengthen its position as a global market leader. Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2003 totaled EUR 13 billion. The Company currently employs approximately 64,300 people in more than 80 countries. Financial results for the second quarter will be published on July 19, 2004. Ripplewood Holdings L.L.C. manages approximately $10 billion of capital, focusing primarily on investments in the U.S., Europe and Japan. Ripplewood's U.S. portfolio holdings include Asbury Automotive, WRC Media, Inc. and Direct Holdings Worldwide, the parent company to Lillian Vernon Corporation and Time Life, Inc. The portfolio companies in its Japan-focused fund include Japan Telecom Co., Ltd., the Phoenix Seagaia golf resort, recording label Columbia Music Entertainment, auto-components manufacturer Niles Co., Ltd. and electronics component manufacturer D&M Holdings Inc. The firm has completed some of the largest private equity transactions in history. In 1999, a Ripplewood-led consortium purchased Shinsei Bank Ltd. (formerly the Long Term Credit Bank of Japan, Ltd.) whose stock successfully commenced trading on the Tokyo Stock Exchange in February of this year. Earlier this month, Ripplewood and Activated Holdings L.L.C. announced that they had signed a definitive agreement to acquire the worldwide business of Shaklee, a leading manufacturer and distributor of nutrition, personal care and household products. Internet: www.akzonobel.com Not for publication - for more information Akzo Nobel N.V. John Jennings, Manager Corporate Communications, tel. +31 26 366 4343 For Ripplewood Holdings L.L.C. Jeffrey Taufield, Kekst and Company, tel. +1 212 521-4815, Jeffrey-Taufield@kekst.com Safe Harbor Statement* This press release may contain statements which address such key issues as Akzo Nobel's growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. A copy of which can be found on the Company's website. * Pursuant to the U.S. Private Securities Litigation Reform Act 1995. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/04/26/20040426BIT20010/wkr0006.pdf