Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, today announces that the previously announced sale of DSM Special Products BV to Arsenal Capital Partners (United States) will not be completed.

The transaction was originally announced on 3 March 2008. In August 2008, the European Commission announced an in-depth investigation into the transaction. Last month, the European Commission approved the sale, but the conditions the Commission demanded have led to the conclusion that the intended sale is no longer feasible.

DSM regrets that the transaction cannot be completed and will continue the divestment process for DSM Special Products, as part of its Vision 2010 strategy.

DSM Special Products is the producer of Purox®, an ingredient used in food as well as in a range of industrial applications. It also produces an ingredient for VevoVitall®, a product for the animal health market that will remain with DSM Nutritional Products. DSM Special Products employs around 130 people in Rotterdam and Sittard (Netherlands), and has an annual turnover of approximately EUR 100 million.