Evonik Degussa Increases Prices for Industrial Specialties

12/10/2006

Essen – Effective February 1, 2008 the business line Goldschmidt Industrial Specialties of Evonik AG will increase prices in Europe by 5 to 10 percent for specialty surfactants in industrial applications.

The price adjustments are attributed to the continuous increase in costs for key raw materials for specialty silicone and organic surfactants. Together with a tight supply situation for some raw materials, the increase in prices even accelerated during recent months. Furthermore increasing energy, transportation, packaging and legislative (REACh) costs made these increases inevitable. Although Goldschmidt Industrial Specialties has managed to optimize processes and costs, this could only partially offset increased raw material costs. As a consequence part of these additional costs have to be passed on to our customers in order to further offer innovative solutions and high product quality.

These price increases include among others product lines, like TEGO^® Antifoam, TEGO^® RC, TEGOPREN^®, TEGOSIVIN^®, TEGOMER^®, REWOCOROS^® and REWOPOL^®.



Company information
Evonik Industries is the creative industrial group which operates in three highly profitable, promising business areas: Chemicals, Energy and Real Estate. Evonik is a global leader in specialty chemicals, an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our strengths are creativity, specialization, continuous self-renewal, and reliability.
Evonik is active in over 100 countries around the world. In fiscal 2006 around 43,000 employees generated sales of €14.8 billion and operating profit (EBIT) of over €1.2 billion. Evonik plans to enter the capital markets in the first half of 2008.

Disclaimer
In so far as forecasts or expectations are expressed in this press release and where our forward-looking statements concern the future, these forecasts, expectations and statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Evonik Industries AG assumes no obligation to update the forecasts, expectations or statements contained in this release.