Rhodia in Line with 2006 Objectives; First Quarter 2006 Results

Business Wire, May 11, 2006

4. Outlook

In an economic environment still influenced by volatile raw material prices, energy costs and exchange rates, market conditions remain satisfactory in the Group's various businesses and operating regions.

As a result, Rhodia can confirm its 2006 objectives:

--A recurring EBITDA margin of at least 13%

--A positive Net Income for 2006

--A ratio of Net Debt to recurring EBITDA of less than 2.9 times

Looking further ahead, the Group reaffirms its medium-term objectives:

--A recurring EBITDA margin of at least 15%(b)

--A ratio of Net Debt to recurring EBITDA of less than 2.2(b) times

(a) Defined as "net cash from operating activities" minus
        "purchases of property, plant and equipment" and minus
        "purchases of other non-current assets"

    (b) Excluding CO2 credits from CDM projects.

     This press release and a detailed presentation of the Q1 2006
       results will be available at www.rhodia.com as of 7:30 am

This press release contains elements that are not historical facts including, without limitation, certain statements on future expectations and other forward-looking statements. Such statements are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated.

Rhodia is a global specialty chemicals company recognized for its strong technology positions in Performance Materials, Functional Chemicals and the Organics and Services clusters. Partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets, Rhodia offers tailor-made solutions combining original molecules and technologies to respond to customers' needs. Rhodia subscribes to the principles of Sustainable Development communicating its commitments and performance openly with stakeholders. Rhodia generated sales of 5 billion euros in 2005 and employs around 19,500 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange.