October 30, 2009

Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, announces that the contracts to establish nutrition and anti-infectives joint ventures in China with North China Pharmaceutical Group Corporation Ltd. (NCPC) are suspended, but will continue the search for partners in China as DSM prepares for further growth in China.

China in 2008 represented eight percent of DSM's net sales.

Jan Zuidam, Deputy Chairman of the DSM Managing Board, said, "China is transforming from the world's manufacturing base into one of the world's leading economies with one of the highest growth rates. Economic prosperity and strong domestic demand, driven by a fast-rising income level combined with an increased focus on innovation, are expected to fuel economic growth in China for the coming decades. DSM is very well positioned in China and is continuously seeking opportunities to further improve its position."

In 2004 DSM announced its intention to form a strategic partnership with NCPC. Earlier this year the contracts for joint ventures in the areas of nutritional products (vitamins) and anti-infectives were signed.

DSM has been informed that, due to the recent change in the ownership of NCPC, the implementation of these contracts has been delayed and possibly cannot be effectuated within a reasonable timeframe. Although still interested in the cooperation, the contracts are suspended, while both parties are maintaining their ongoing business relationships. At the same time, DSM will look for alternative solutions for the prospective partnerships.

DSM will continue to explore other opportunities for further growth in China through strategic cooperation, also in the areas of nutritional products and anti-infectives.

DSM has invested in China for over a decade, with China being its regional headquarters and its R&D centre in Shanghai. The company currently has 14 manufacturing sites in China and employs nearly 4,000 people.

Royal DSM N.V. creates products and services that are used globally in a wide range of markets and applications, with end markets including human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing.