Akzo Nobel Divests PRC DeSoto to PPG Industries for USD 512.5 million

Akzo Nobel Divests PRC DeSoto to PPG Industries for USD 512.5 million Arnhem, the Netherlands, June 2, 1999. - Akzo Nobel has agreed to divest PRC DeSoto International, Inc., the former Courtaulds Aerospace Coatings and Sealants business, to PPG Industries for USD 512.5 million (EUR 490 million). Pending regulatory approval, the transaction should be concluded by the end of July. The divestment was necessary to comply with the European Commission's ruling - at the time of the acquisition of the former Courtaulds - that Akzo Nobel was required to divest the Courtaulds Aerospace Coatings and Sealants business or, alternatively, to divest its share in the ADAF joint venture to its joint venture partner, The Dexter Corporation. Akzo Nobel acquired The Dexter Corporation's 40% in ADAF in January 1999, and in consequence, began the divestment process for PRC DeSoto in order to comply with the ruling of the European Commission. Credit Suisse First Boston has acted as trustee of PRC DeSoto since the acquisition of former Courtaulds plc., and will continue to do so until the completion of the sale. "This completes the divestment program connected with the Courtaulds acquisition, which in total significantly reduces our debt levels by some EUR 1.1 billion" said Fritz W. Fröhlich, Akzo Nobel's Chief Financial Officer. Akzo Nobel continues to serve the aerospace industry through Akzo Nobel Aerospace Coatings, which it now wholly owns, and which supplies a full range of coatings for aerospace applications. Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, chemicals and fibers. The fibers business, now known as Acordis, will be demerged. The company currently employs approximately 86,000 people in more than 70 countries. As of 1999 the euro is Akzo Nobel's external reporting currency. Consolidated sales for 1998 totaled EUR 12.5 billion (NLG 27.5 billion / USD 13.8 billion / GBP 8.4 billion). Financial results for the second quarter of 1999 will be announced on July 28. - - - Internet:http://www.akzonobel.com http://www.cr.akzonobel.com Note for the editor / not for publication For more information please contact: Akzo Nobel N.V. John C.S. Jennings, Corporate Media Relations, tel. +31 26 366 4343 ------------------------------------------------------------ Mer information finns att få på http://www.bit.se Följande filer finns att ladda ned: http://www.bit.se/bitonline/1999/06/02/19990602BIT00070/bit0001.doc