ELANTAS Electrical Insulation

Wesel, October 16, 2002

ALTANA Investors' Conference Chemicals

First ALTANA Chemie Investors' Conference
Innovative niche player
Leading market position in four business areas
Bad Homburg, 16 October 2002 - ALTANA AG, Bad Homburg, presented the activities of its Specialty Chemicals Division to numerous analysts and investors at today's Investors' Conference. Strategy, the market environment and research & development in the four Business Units were the main themes. "The presentation will ensure that ALTANA AG's highly profitable Specialty Chemicals division attracts more attention from the capital market in the future", explained Nikolaus Schweickart, Chairman of the Management Board of ALTANA AG at the start of the conference.

Leading supplier of specialty chemicals

Based in Wesel, Germany, ALTANA Chemie is a worldwide group of companies which includes the specialty chemicals activities of the ALTANA Group. In 2001, ALTANA Chemie achieved sales of € 717 million, of which 86% outside Germany, with around 2,200 employees. With an operating return on sales before taxes (EBITDA) of 21% (1st half-year, 2002), the company is one of the leading players amongst comparable suppliers of specialty chemicals.

The company started out in 1962 with 12 employees and € 0.2 million. On average, it has quadrupled its sales volume every 10 years since then. Thanks to innovations and around 25 successful acquisitions since 1989, ALTANA Chemie now ranks amongst the market leaders in its four business units: Additives & Instruments, Coatings & Sealants, Wire Enamels, Varnish & Compounds.

Innovative niche player

Close customer contact, comprehensive service and innovative research & development are the drivers behind the success enjoyed by ALTANA Chemie. Over the 2001 business year, almost 5% of sales revenues were reinvested in research and development activities. Products launched within the last ten years generate 30-40% of turnover in e.g. the additives segment.

Comprehensive solutions for customer needs are the key to safeguard the leading competitive position of ALTANA Chemie in these areas of business and the above-average growth achieved in past years. Whilst each Business Unit conducts its own research and development projects, the different areas of work are interlinked by future-oriented technology platforms (e.g. UV technology and nanotechnology). Active cooperation guarantees a continuous exchange of information between the various research and development facilities. Research alliances supplement the company's own activities and ensure access to the latest scientific findings.

"Intensive research and a focus on niche markets permit ALTANA Chemie to set itself apart from competitors with regard to product innovation, quality, technical competence and customer service and to work towards attaining and reinforcing a leading market position in each business area", explains Dr. Matthias Wolfgruber, member of the Management Board of ALTANA AG and Chairman of the Management Board of ALTANA Chemie.

ALTANA Chemie currently comprises four Business Units

Additives & Instruments

In 2001, ALTANA Chemie achieved sales of € 283 million with additives for varnishes and plastics as well as testing and measuring instruments. Customers are all prestigious manufacturers of paints, plastics and varnishes. The company is the world's market leader in high-quality varnish additives. The basis of this success lies in an own research and development activities dedicated to working out system solutions in close contact with customers. The future trend for paint additives, plastics and testing and measuring instruments will be even more oriented towards non-aggressive, environmentally compatible systems and solutions.

Coatings & Sealants

The Coatings & Sealants Business Unit achieved sales of € 218 million in 2001. Our varnish coatings and sealing compounds are sold to manufacturers of metal sheets and strips and the packaging industry. The end products are used for canned food and beverages, covering film and jar tops. New developments are focused on PVC-free products and products which can be UV/IR-treated as well as heat-resistant coatings for sterilizable packaging.

Wire Enamels

With sales of € 151 million in 2001, ALTANA Chemie is the world's market leader in wire enamels. Wire enamels are used to insulate copper and aluminum wires for use in electric motors and transformers, for example. R&D activities are focused on finding more environmentally compatible wire enamels as well as wire enamels which permit e.g. high-speed applications.

Varnish & Compounds

Sales of casting compounds and impregnating resins for electronic components totaled € 65 million in 2001. ALTANA Chemie is a strong competitor in this sector, especially in the North American market. Research is concentrated on e.g. identifying more environmentally-compatible solutions, improved process technology and casting compounds with higher temperature resistance.

Expansion through a strategy of targeted acquisitions

ALTANA Chemie will continue to grow through both internal expansion and targeted acquisitions. Product innovations and intensified marketing shall ensure growth above the respective industry average. Additional acquisitions shall improve ALTANA Chemie's strategic position and have a comparable potential for profitability.