Wesel, March 31, 2004

ALTANA Electrical Insulation Streamlines Organization in Germany witha New Site Concept

Wesel, March 31, 2004 - ALTANA Electrical Insulation (AEI), a business unit of ALTANA Chemie AG, Wesel, will wind up the business activities of Rhenatech GmbH Elektroisoliersysteme, Kempen with effect from 30/09/2004 as part of its strategic focusing and the ongoing integration of the Schenectady electrical insulation companies acquired in 2003.

The product program of the AEI subsidiaries Rhenatech and Beck Electrical Insulation, supplying impregnating resins and compounds, will be streamlined and combined in a new sales line. Production, development and distribution will be overseen in future by Beck Electrical Insulation, Hamburg. The products will be transferred in the coming months in close coordination with the customers. Jobs in other group companies will be found wherever possible for the Rhenatech employees affected by the closure.

"We want with this move to strengthen our position as the market leader in the electrical insulating materials sector," Dr. Christoph Schlünken, Business Unit Manager of ALTANA Electrical Insulation, explains. "Innovation, quality and service are increasingly important in an ever intensifying market environment. At the same time, we are making use of all the synergies and optimizing the structures to improve our competitiveness and cost position."

Beck Electrical Insulation in Hamburg is the leading supplier in the field of coatings and impregnating resins, which have been well known for many years under the brand name of Dobeckan®. Beck is a pioneer in the field of monomer-free polyester resins. Beck Electrical Insulation offers an especially efficient and innovative program for the protection of electronic components, which is to be extended still further. These Bectron® products protect, for example, printed circuit boards, electronic modules and other electronic components.

Rhenatech Elektroisoliersysteme has been especially active in the field of polyurethane, epoxy and silicone rubber compounds. Among the products and processes recently developed, its total encapsulation technology for electrical motors is worth mentioning. The Rhenatech® brand will be maintained and the product lines will be further developed by Beck Electrical Insulation.

The bringing together of these activities will create a well rounded program, capable of meeting almost all the demands of customers engaged in the electrical and electronic industry.