November 24, 2004

Royal DSM N.V. to Partake in North China Pharmaceutical Group Corporation
 

Royal DSM N.V, is presently engaged in discussions with North China Pharmaceutical Group Corporation (NCPC) of Shijiazhuang, Hebei Province, People's Republic of China, with regards to a strategic partnership via a.o. participation in the equity ownership of North China Pharmaceutical Company, Ltd. (NCPC Ltd.), a company which is listed on the Shanghai stock exchange. 

DSM is headquartered in Heerlen, The Netherlands. The company's equity participation in NCPC Ltd. is related to the establishment of joint ventures in the area of vitamins and anti-biotic products.

According to the agreement signed between NCPC and DSM on November 22, 2004, DSM intends to contribute USD 25 million, which equals to RMB 206,602,500 at the exchange rate of USD 1 to RMB 8.2641 on November 11, 2004, to acquire 58,197,887 state-owned shares of NCPC Ltd. held by NCPC at the price of RMB 3.55/share.

Definitive agreements, detailing the various transactions, have yet to be worked out and such agreements will require the approval of several internal and external parties. According to DSM, the yet unknown time schedule of the regulatory approvals for all of the anticipated arrangements will determine the schedule for completing the planned transactions.