Rhodia sells European industrial fibers business.(Acquisition)(Butler Capital Partners)(Brief article)

China Chemical Reporter, December, 2006

(Paris, December 5th, 2006) Rhodia announced the signing of an agreement for the sale of its European industrial fibers business to Butler Capital Partners.

"This transaction is in line with our strategy to refocus on businesses in which we hold strong leadership positions", commented Rhodia Chief Executive Officer Jean-Pierre Clamadieu. "For our Polyamide activity, our strategy is to strengthen our leading position by building future growth in Intermediates and Engineering Plastics, developing innovative solutions for our customers and further consolidating our industrial footprint, particularly in Asia."