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Akzo Nobel intends to IPO Pharma Arnhem, the Netherlands, February 7, 2006. • Akzo Nobel to create two independent companies: Coatings/Chemicals and Pharmaceuticals • Intended first step is a minority IPO of its Pharmaceuticals business, to be called Organon Biosciences • Timing dependent on important developments within Organon Biosciences’s pipeline which are expected in the second half of 2006 • Full separation of Organon Biosciences expected within 2-3 years post IPO “Over recent years, we have made significant progress related to our strategy of fixing pharma, refocusing our chemicals portfolio and continuing to grow and invest in our coatings business,” said Hans Wijers, CEO of Akzo Nobel. “As a logical next step, and after a thorough strategic review, we believe that creating two independent companies, Coatings/Chemicals and Pharmaceuticals, will enhance shareholder value through both increased management and strategic focus, and greater transparency. Both businesses are strongly positioned to grow independently.” Akzo Nobel’s Core Focus on Coatings/Chemicals “The increased management and strategic focus afforded through the separation of Pharmaceuticals will enable us to accelerate growth and invest in attractive expansion opportunities in our Coatings and Chemicals businesses,” emphasized Hans Wijers. “Our coatings business is the market leader, and our recent acquisitions underscore our commitment to pursuing opportunities globally, including in emerging markets. Our refocused chemicals business is well positioned for growth, based on leading positions in our five core platforms.” Organon Biosciences Growth Platform The new Pharmaceuticals business will include Organon and Intervet, and will be renamed Organon Biosciences. “The future of Organon Biosciences is strong,” said Toon Wilderbeek, Akzo Nobel’s Board of Management member responsible for Pharmaceuticals and designated CEO of the new company. “The business is at a turning point and positioned to deliver strong, profitable growth. Our pipeline continues to progress and our strategy for seeking co-development and co-promotion partnerships provides incremental expertise for our business. At the same time we will continue to expand our biotechnology activities through our manufacturing expertise and knowledge of recombinant technologies.” Akzo Nobel nv Velperweg 76 P.O. Box 9300 6800 SB Arnhem The Netherlands Tel +31 26 366 43 43 Fax +31 26 366 49 40 “Intervet, a global leading animal health company, is complementary to our pharmaceuticals strategy, combining the leading position in vaccines and biologics with strong financial performance. By bridging Intervet’s extensive biological and vaccines experience, we believe we can continue building a successful human vaccines presence through our Nobilon business.” Transaction Considerations After careful consideration, management believes the appropriate first step in creating two independent companies is a minority listing of Organon Biosciences through an IPO on Euronext Amsterdam. Post IPO, Akzo Nobel intends to separate the Pharmaceutical business fully within 2-3 years. Management believes this staged process best meets Akzo Nobel’s long-term objectives and will create greater value for shareholders. The final timing will be dependent on important developments within Organon’s pipeline which are expected in the second half of 2006, including Phase III data for asenapine, as well as on market conditions. Further information will be provided later in the year. The definitive decision on the separation of the two companies is subject to approval by an (extraordinary) meeting of shareholders and consultation with relevant employee representative bodies. Akzo Nobel has engaged Morgan Stanley and ABN AMRO as financial advisors on these matters. --- Note for the editor Akzo Nobel is a global 500 company and is listed on both the Euronext Amsterdam and NASDAQ stock exchanges. It is also listed on the Dow Jones Sustainability Indexes. Based in the Netherlands, we are a multicultural organization serving customers throughout the world with human and animal healthcare products, coatings and chemicals. We employ around 61,500 people and conduct our activities in four segments, human and animal health, coatings and chemicals, subdivided into 13 business units, with operating subsidiaries in more than 80 countries. Consolidated revenues for 2005 totaled EUR 13.0 billion. The financial results for the first quarter will be published on April 20, 2006. Internet: www.akzonobel.com Not for publication – for more information Akzo Nobel nv Corporate Media Relations, tel. +31 26 366 43 43 Contact: Marc Michelsen Safe Harbor Statement* This report contains 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, progress of drug development, clinical testing and regulatory approval, 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 comprehensive discussion of the risk factors affecting our business please see 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 corporate website www.akzonobel.com. The 2005 Annual Report on Form 20-F will be available in the second quarter of 2006. * Pursuant to the U.S. Private Securities Litigation Reform Act 1995. This document does not constitute an offering of any securities in Organon Biosciences. No definitive decision has been made in respect of such offering. The terms and conditions of an offering of securities in Organon Biosciences will be contained in a prospectus, approved by the Dutch Authority for the Financial markets. Prospective investors are urged to read the prospectus, which, in the event that it becomes available, will contain important information that prospective investors should consider before making any investment decision.
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