Published: 08:15 13.10.2008 GMT+2 /HUGIN /Source: DSM N.V. /AEX: DSM /ISIN: NL0000009827

DSM invests in incubator to strengthen position in biomedical materials

DSM Venturing, the corporate venturing unit of Royal DSM N.V., today announces that it has made an investment in the new business incubator in the field of medical devices Accelerated Technologies II, L.P. (ATP). The investment further strengthens DSM's position in the biomedical materials market, one of the Emerging Business Areas defined in its Vision 2010 - Building on Strengths strategy. Financial details will not be disclosed.

In addition to the investment a cooperation agreement has been signed with ATP, which is based in New Jersey, United States. This cooperation provides DSM with close insight into developments in the areas of cardiovascular and age related diseases and serves as a platform to jointly develop medical devices. The investment will facilitate the development of new materials and additional applications for existing materials. As materials knowledge is a vital component of ATP's value proposition, DSM is in an excellent position to reap new opportunities, based on market needs and existing DSM competencies in advanced biomedical materials.

Interactions with ATP's management team and physician founders have already led to new proposals for polymer solutions to address vascular issues. DSM and Caliber Therapeutics, Inc., an ATP supported company, already partner on the development of a novel drug delivery balloon catheter that can be used to treat vascular diseases such as atherosclerosis. The investment in ATP is another strong example of DSM's ambitions in the area of biomedical materials.

Steve Hartig, President of DSM Biomedical: "This partnership is fully in line with the interests of DSM Biomedical and entails a number of clear strategic benefits. It gives us the potential to secure new business and strengthen DSM's positions in emerging medical device markets. Moreover, this deal presents us with the possibility to extend our knowledge, competencies and development potential via an exclusive open innovation partnership. ATP applies a unique incubator-like business model, with proven effectiveness, and I look forward to cooperating with this expert group of physicians and charter new opportunities."

An incubator is designed to nurture business ideas or new technologies to the point that they become attractive to venture capital. Apart from investments in 21 companies, DSM Venturing also works together with seven venture capital funds. Venturing is an integral part of DSM's open innovation approach, focused on teaming up with innovative players all over the world. The company has earmarked up to EUR 200 million for venturing investments until 2012.

DSM Venturing

DSM Venturing is an active investor in emerging companies and Venture Capital Funds in DSM's strategic growth fields Nutrition, Pharma and Performance Materials. DSM Venturing's mission is to explore emerging markets and technologies in these strategic growth fields in order to enhance DSM's product portfolio and create value. DSM Venturing also plays an active role in the development of several new DSM business opportunities in the so-called emerging business areas Biomedical, Industrial (White) Biotechnology, Specialty Packaging and Personalized Nutrition. For more information about DSM Venturing see www.dsm venturing.com.

DSM Biomedical

To meet the upcoming needs of the medical and biotech industries, DSM Biomedical builds on the expertise and strengths of DSM in polymers, coating technology, materials science and life sciences. DSM's current biomedical portfolio includes ComfortCoat(TM) hydrophilic and antimicrobial coating technology for catheters, guidewires and other applications and Dyneema Purity®, a high performance polyethylene fiber technology, which has been developed specifically for use in medical applications, such as orthopedic implants. Recently the company acquired PTG, a market leader in the field of biomedical polymers. DSM Biomedical also develops innovative controlled drug delivery systems for both ophthalmic and vascular disease treatments. In this segment, DSM employs the Trancerta(TM) Drug Delivery approach which is based on DSM's core strengths in polymers combined with its extensive in-house library of synthesis methods, formulation and processing techniques. Furthermore, a research and development program specifically aimed at extending DSM's material portfolio for the orthopedic industry has been started. For more information, visit www.dsmbiomedical.com.

DSM - the Life Sciences and Materials Sciences Company

Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM's products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrics and electronics, life protection and housing. DSM has annual sales of almost EUR 8.8 billion and employs some 23,000 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information: www.dsm.com.

For more information:

DSM Corporate Communications

Herman Betten

tel. +31 (0) 45 5782017           

fax +31 (0) 45 5740680           

e-mail media.relations@dsm.com  

DSM Investor Relations

Hans Vossen

tel. +31 (0) 45 5782864

fax +31 (0) 45 5782595

e-mail investor.relations@dsm.com

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Forward-looking statements

This press release contains forward-looking statements. These statements are based on current expectations, estimates and projections of DSM and information currently available to the company. The statements involve certain risks and uncertainties that are difficult to predict and therefore DSM does not guarantee that its expectations will be realized. Furthermore, DSM has no obligation to update the statements contained in this press release.

The English language version of the press release is leading.