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Akzo Nobel intends to IPO Pharma


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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
•   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

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

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
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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