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Degussa Grows SAP Business Through Dow Purchase

February 10, 2006

Degussa AG, Dusseldorf, Germany, is acquiring the superabsorbent business of The Dow Chemical Company. Financial terms of the agreement were not disclosed. The purchase will include Dow’s superabsorbent polymer facility in Rheinmuenster/Baden-Baden, Germany as well as a toll manufacturing arrangement with Dow’s superabsorbent facility in Midland, MI. In addition, Degussa and Dow will enter into a long-term agreement for Dow to supply glacial acrylic acid—an important raw material in superabsorbent polymer production—to Degussa with opportunities for future growth of this volume over time.

Degussa will gain Dow’s worldwide existing superabsorbent business and will result in a considerable expansion of Degussa’s present global superabsorbent manufacturing capacity.

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