Acquisition of ICI

• Transformational deal and a perfect strategic fit with
  Decorative Coatings

• Geographic expansion into high-growth markets

• Portfolio strengthened with leading brands and innovative technologies

ICI Key brands

Akzo Nobel and Imperial Chemical Industries (ICI) reached agreement on the terms of a recommended cash offer by Akzo Nobel for the entire issued and to be issued share capital of ICI in August 2007. The offer price valued the entire existing issued ordinary share capital of ICI at approximately EUR 11.5 billion (GBP 8.1 billion).

In addition to the deal – which included an extra 5p in dividend over the second half of 2007, on top of a 4.95p interim dividend already declared by ICI over the first half of 2007, valuing ICI at 679p a share – Akzo Nobel also agreed a back-to-back sale of ICI’s Adhesives and Electronic Materials activities to German company Henkel for EUR 4 billion (GBP 2.7 billion).

The transaction, which was approved by Akzo Nobel and ICI shareholders in November 2007, consolidated Akzo Nobel’s position as the world’s largest maker of paints and coatings, as well as generating estimated pre-tax cost synergies of EUR 280 millions.

Akzo Nobel’s purchase of ICI – finalized on January 2, 2008 – was the second largest acquisition ever by a Dutch company. The combination provides well developed access to fast-growing markets in Asia and Latin America and adds an experienced and skilled workforce, as well as boosting the company’s portfolio with new technologies and household brands such as Dulux® and Glidden®.

pro forma Akzo Nobel - ICI 2007 FIGURES

OTHER SYNERGIES WITH ESTIMATED Post-tax NPV OF EUR 375 MILLION, OF WHICH 75 percent IS CASH RELATED

• Opportunities to grow revenue faster

• Reduction in working capital

• Consolidation of manufacturing sites

• Opportunity costs of building position in Asia by Akzo Nobel