Akzo Nobel invests in global research and production facilities in the U.S.


ARNHEM, The Netherlands, Aug. 12, 2003 (PRIMEZONE) -- Akzo Nobel (Other OTC:AKZOY) is to establish an international R&D center in Pontiac, Michigan, U.S., for its Car Refinishes business. The site will play a major role in the development of new products for the global and regional refinishes markets. Along with the R&D facilities, Akzo Nobel will also build a new hi-tech dispersion facility to produce Sikkens Autobase(R) Plus Car Refinishes paint for the North American region. The total investment will amount to USD 30 million.

"This new R&D and production facility underscores our ambition to grow the Car Refinishes business in the U.S. market," said Rudy van der Meer, Akzo Nobel's Board Member responsible for Coatings. "Technological expertise is of paramount importance for coatings in general and for car refinishes in particular and these investments will enhance our global technological leadership."

"The establishment of the new facility re-emphasizes the importance of Akzo Nobel's presence in the U.S.," added Cor de Grauw, General Manager of Akzo Nobel Car Refinishes. "The Pontiac site will play a major role, not just in growing the market for Car Refinishes in the U.S., but it will also help to support our global activities in research and development and in manufacturing.

The hi-tech dispersion facility will produce highly concentrated intermediate products that are turned into finished paints in other parts of the world, close to local markets. The redevelopment of the Pontiac site will involve demolishing old and building new manufacturing units. The R&D activities presently housed in nearby Troy, Michigan, will relocate to the new facilities in Pontiac. Construction will start later this year.

Akzo Nobel Car Refinishes operates two other global research centers, located in Sassenheim, the Netherlands and Bangalore, India. The business also has major production facilities in Sassenheim, the Netherlands; Sao Paulo, Brazil; Vantaa, Finland; Zona Franca, Spain; Jakarta, Indonesia; and Suzhou, China.

Note for the editor

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2002 totaled EUR 14 billion. The Company currently employs approximately 66,000 people in more than 80 countries. Financial results for the third quarter will be published on October 17, 2003

Akzo Nobel Car Refinishes supplies paint, decals, services and software for car repair, commercial vehicle and automotive markets. The main brands include Sikkens(R) and Lesonal(R) in car repair, and Sikkens Autocoat(R) BT in commercial vehicles. Automotive plastic interior and exterior components customers are served by Akzo Nobel Car Refinishes. Sales for 2002 of all activities were in the order of magnitude of EUR 900 million.


 Internet:      www.akzonobel.com;www.carrefinishes.com

For more information please contact: Akzo Nobel Car Refinishes, John Burger, Global Communication Manager Tel. +31 71 308 3200 or e-mail: john.burger@akzonobel.com

Safe Harbor Statement*

This press release contains statements, which address such key issues as Akzo Nobel's growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission.

* Pursuant to the U.S. Private Securities Litigation Reform Act 1995.

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