DSM Desotech Sells Display Coatings Business to JSR Corporation

Market Wire, March, 2006

DSM Desotech Inc., a subsidiary of Royal DSM N.V. based in the Netherlands, and JSR Corporation announced today that the two companies have signed definitive agreements that will result in JSR acquiring the display coatings business that the two companies have jointly cooperated in as part of their joint venture, Japan Fine Coatings Co., Ltd.

JSR will directly acquire DSM Desotech's display coatings technology and business positions in this same market area outside Japan. No physical assets are involved in the acquisition. Parties have agreed not to disclose the transaction price to be paid by JSR to DSM. The effective date of the transaction will be April 1, 2006. The book gain for DSM on this transaction amounts to approximately EUR 10 million after tax, which will be reported by DSM in the results for the second quarter of 2006.

The display business consists of coatings used in the production of flat panel displays for protection, anti-reflection and related purposes. JSR will acquire patents and business rights to this business on a global basis, along with related technologies.

About DSM Desotech

DSM Desotech is a world leader in the development and manufacture of high-performance UV-curable materials used in a variety of today's top industries. In Telecommunications, Desteoch is the world's leading supplier of protective coatings, inks and matrix materials used for the production of glass optical fiber and optical cable. DSM Desotech is a business unit within the Performance Materials cluster of the global DSM group headquartered in the Netherlands. Desotech operates research and manufacturing facilities in the United States, The Netherlands, China and Japan. More information about the company can be found at www.dsmdesotech.com .

About DSM

DSM is active worldwide in nutritional and pharma ingredients, performance materials and industrial chemicals. The company develops, produces and sells innovative products and services that help improve the quality of life. DSM's products are used in a wide range of end-markets and applications, such as human and animal nutrition and health, personal care, pharmaceuticals, automotive and transport, coatings, housing and electrics & electronics (E&E). DSM's strategy, named Vision 2010 - Building on Strengths, focuses on accelerating profitable and innovative growth of the company's specialties portfolio. Market-driven growth, innovation and increased presence in emerging economies are key drivers of this strategy. The group has annual sales of over EUR 8 billion and employs some 22,000 people worldwide. DSM ranks among the global leaders in many of its fields. The company is headquartered in the Netherlands, with locations in Europe, Asia, Africa and the Americas. More information about DSM can be found at www.dsm.com .

For more information:

DSM Corporate Communications     DSM Investor Relations
Nelleke Barning                  Dries Ausems
tel.  31 (0) 45 5782017          tel.  31 (0) 45 5782864
fax  31 (0) 45 5740680           fax  31 (0) 45 5782595
e-mail  media.relations@dsm.com    e-mail  investor.relations@dsm.com 

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