Rhodia Reports Initial Signs of Business Recovery; Major Steps Achieved in Group's Action Plan

Business Wire, May 17, 2004

CONSOLIDATED INCOME STATEMENT
(French GAAP)

(Million Euros)                                     Q1 2003   Q1 2004
-------------------------------------------------- --------- ---------

Net Sales                                             1,428     1,348
-------------------------------------------------- --------- ---------
EBITDA before restructuring                             120       124
-------------------------------------------------- --------- ---------
EBITDA                                                  112       101
-------------------------------------------------- --------- ---------
Operating Profit                                          9         4
-------------------------------------------------- --------- ---------
Equity in earnings of affiliated companies               -9       -11
-------------------------------------------------- --------- ---------
Interest expenses                                       -27       -67
-------------------------------------------------- --------- ---------
Other gains and losses                                   -8        -8
-------------------------------------------------- --------- ---------
Income Tax                                              -16       -22
-------------------------------------------------- --------- ---------
Minority Interests                                       -1        -1
-------------------------------------------------- --------- ---------
Net result after minorities
(before goodwill amortization)                          -52      -103
-------------------------------------------------- --------- ---------
Goodwill amortization                                   -11        -5
-------------------------------------------------- --------- ---------
Net result after minorities
(after goodwill amortization)                           -63      -108
-------------------------------------------------- --------- ---------
Earnings/(loss) per share (euro) (b)                  -0,35     -0,60
-------------------------------------------------- --------- ---------

(b) Earnings per share for 2003 is calculated on the basis of
    179,309,188 shares outstanding.


CONSOLIDATED BALANCE SHEET
                                                   Dec 03    March 04
                                                 ---------- ----------
(Million Euros)
------------------------------------             ---------- ----------
Fixed Assets                                         3,968      4,026
------------------------------------             ---------- ----------
Current Net Assets                                     200        433
------------------------------------             ---------- ----------
Total Assets                                         4,168      4,459
------------------------------------             ---------- ----------

------------------------------------             ---------- ----------
Shareholders' Equity(c)                                275        215
------------------------------------             ---------- ----------
Long Term & Short Term Liabilities                   1,326      1,352
------------------------------------             ---------- ----------
Net Debt                                             2,567      2,892
------------------------------------             ---------- ----------
Total Liabilities                                    4,168      4,459
------------------------------------             ---------- ----------

(c) including minority interests


(Million Euros)                   Q1 2003   Q1 2003   Q1 2004     %
                                 --------- --------- --------- -------
                                           restated
RHODIA (consolidated)                         (A)       (B)    (A)/(B)
-----------------------------    --------- --------- --------- -------
Net Sales                           1,428     1,347     1,348       0%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.               120       108       124      15%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %            8,4%      8,0%      9,2%
-----------------------------    --------- --------- --------- -------
EBITDA                                112       101       101       0%
-----------------------------    --------- --------- --------- -------

HPCII
-----------------------------    --------- --------- --------- -------
Net Sales                             164       149       160       7%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                20        18        23      28%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %           12,2%     12,1%     14,4%
-----------------------------    --------- --------- --------- -------
EBITDA                                 20        18        23      28%
-----------------------------    --------- --------- --------- -------

PPF
-----------------------------    --------- --------- --------- -------
Net Sales                             292       256       265       4%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                26        18        28      56%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %            8,9%      7,0%     10,6%
-----------------------------    --------- --------- --------- -------
EBITDA                                 27        19        26      37%
-----------------------------    --------- --------- --------- -------

RE3S
-----------------------------    --------- --------- --------- -------
Net Sales                             186       179       188       5%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                14        14        12     -14%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %            7,5%      7,8%      6,4%
-----------------------------    --------- --------- --------- -------
EBITDA                                 14        13        12      -8%
-----------------------------    --------- --------- --------- -------

PPMC
-----------------------------    --------- --------- --------- -------
Net Sales                             135       130       126      -3%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                 6         6         1     -83%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %            4,4%      4,6%      0,8%
-----------------------------    --------- --------- --------- -------
EBITDA                                  5         5       0,3     -94%
-----------------------------    --------- --------- --------- -------

POLYAMIDE
-----------------------------    --------- --------- --------- -------
Net Sales                             359       355       350      -1%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                47        47        42     -11%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %           13,1%     13,2%     12,0%
-----------------------------    --------- --------- --------- -------
EBITDA                                 46        46        42      -9%
-----------------------------    --------- --------- --------- -------

ECO SERVICES
-----------------------------    --------- --------- --------- -------
Net Sales                              48        42        48      14%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                26        24        21     -13%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %           54,2%     57,1%     43,8%
-----------------------------    --------- --------- --------- -------
EBITDA                                 25        23        21      -9%
-----------------------------    --------- --------- --------- -------

ACETOW
-----------------------------    --------- --------- --------- -------
Net Sales                             110       108        94     -13%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                28        28        23     -18%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %           25,5%     25,9%     24,5%
-----------------------------    --------- --------- --------- -------
EBITDA                                 28        28        23     -18%
-----------------------------    --------- --------- --------- -------

RPS
-----------------------------    --------- --------- --------- -------
Net Sales                              68        68        66      -3%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.               -10        -9        -5      44%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %          -14,7%    -13,2%     -7,6%
-----------------------------    --------- --------- --------- -------
EBITDA                                -14       -14        -6      57%
-----------------------------    --------- --------- --------- -------

PPA
-----------------------------    --------- --------- --------- -------
Net Sales                              96        92        84      -9%
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.                 9         8       4,3     -46%
-----------------------------    --------- --------- --------- -------
EBITDA Margin bef. Rest. %            9,4%      8,7%      5,1%
-----------------------------    --------- --------- --------- -------
EBITDA                                  9         8       -11    -238%
-----------------------------    --------- --------- --------- -------

-----------------------------    --------- --------- --------- -------
inter company  Sales                  -30       -32       -33       3%
-----------------------------    --------- --------- --------- -------

CORPORATE &OTHERS
-----------------------------    --------- --------- --------- -------
EBITDA before restruct.               -47       -46       -25      46%
-----------------------------    --------- --------- --------- -------
EBITDA                                -48       -47       -29      38%
-----------------------------    --------- --------- --------- -------