Royal DSM N.V. announces that privately owned Pentapharm Holding Ltd. and DSM Nutritional Products Ltd. have signed on July 4 an agreement on the sale and purchase of 100% of the Pentapharm’s shares to DSM. Pentapharm, headquartered in Basel (Switzerland) with sales revenues of some EUR 40 million, employs about 200 people at locations in Switzerland, Japan and Brazil. Pentapharm holds a global leading position in the development and production of active ingredients and system solutions for the personal care industry and is also present in niche pharmaceutical and diagnostics markets. Pentapharm is particularly well known for its capabilities in innovation which have won it high regard amongst customers and strong brand recognition in the industry.

Pentapharm’s patent-protected cosmetic active ingredients meet consumers’ increasing demand for effective anti-aging, self-tanning, body-slimming and whitening products. Supported by the global wellness trend such cosmetic active ingredients benefit from the highest growth rates within the Personal Care ingredients market. In the pharmaceutical and diagnostics field Pentapharm offers specialized products for niche applications in the context of human blood coagulation disorders.

Examples for Pentapharm’s innovative Personal Care portfolio include amongst others:
Syn®-Ake: an anti-aging synthetic tripeptide, which mimics a snake venom-like mechanism and shows an excellent anti-wrinkle activity dignified with the Swiss Technology Award 2006, Erythrulose: a self-tanning agent which leads to a deep, even and natural long-lasting tan without streaks. This contributes to the on-going boost in sunless tanning products.
Vialox®: an anti-wrinkle breakthrough and highly effective alternative to painful Botox injections based on synthetic pentapeptides.
Alpaflor®: a broad range of domestic plant extracts (certified by ECOCERT for Natural and Organic cosmetic products) which are organically cultivated in the Swiss Alps at altitudes between 1.000 and 1.500 meters. First to mention is the EDELWEISS extract which is rich in antioxidant and radical-scavenging components against oxidative stress.
Pentapharm’s highly acknowledged skills in market positioning and introducing new products in addition to DSM’s strong science base due to the unique heritage in pharma and nutrition research offer an attractive and efficient launch platform to leverage further Pentapharm as well as DSM pipeline products in the near future.

With the acquisition of Pentapharm, DSM Nutritional Products will further strengthen its Number 1 position as the global leading supplier of active ingredients for Skin and Sun Care. In line with DSM’s unique Dual Track-strategy the strong focus on innovative products and integrated solutions for consumers’ beauty and well-being benefits plays the dominant role and substantiates DSM’s goal to be the preferred partner for the producers of Personal Care products accordingly. The parties have agreed not to disclose financial details of the transaction.

`I am convinced that we have found in DSM a future-oriented and dynamic partner as the new owner who is committed to invest into the highly innovative Pentapharm and to sustain and even advance its success story`, commented Caspar Stürm, co-owner and CEO, Pentapharm.

Ute Schick, Head of New Business Development Personal Care, added: `We are all excited about the acquisition of Pentapharm as it offers the desirable opportunity to harvest the synergy of all innovation-related capabilities of both companies. We also feel very proud that we will be able now to offer the broadest range of unique and innovative active ingredients and related services and solutions to our customers in the Personal Care industry.`

About DSM Nutritional Products

DSM Nutritional Products is the world's leading supplier of vitamins, carotenoids and other fine chemicals to the feed, food, pharmaceutical and personal care industries. The business has sales of about EUR 2 billion and a long tradition as a pioneer in the discovery of new products, new formulations and attractive applications for all industry segments. For further company information please visit www.dsmnutritionalproducts.com

About DSM

DSM is active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals. The company develops, produces and sells innovative products and services that help improve the quality of life. DSM’s products are used in a wide range of end-markets and applications, such as human and animal nutrition and health, personal care, pharmaceuticals, automotive and transport, coatings and paint, housing and electrics & electronics (E&E). DSM’s strategy, named Vision 2010 – Building on Strengths, focuses on accelerating profitable and innovative growth of the company’s specialties portfolio. The key drivers of this strategy are market-driven growth and innovation plus an increased presence in emerging economies. The group has annual sales of over €8 billion and employs some 22,000 people worldwide. DSM ranks among the global leaders in many of its fields. The company is headquartered in the Netherlands, with locations in Europe, Asia, Africa, Australia and the Americas. More information about DSM can be found at www.dsm.com

www.pentapharm.com

For more information:
DSM Nutritional Products
Charlotte Frederiksen

Tel. +41 (0) 61 688 85 14
Fax +41 (0) 61 687 37 16

E-mail: charlotte.frederiksen@dsm.com

Forward-looking statements

This press release contains forward-looking statements. These statements are based on current expectations, estimates and projections of DSM management 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.