Rhein Chemie

Rhein Chemie Kicks Off Polymer-Bound Dispersions Production at Chardon – Emphasizes Focus on Providing Solutions to Customer Needs

Rhein Chemie Kicks Off Polymer-Bound Dispersions Production at Chardon – Emphasizes Focus on Providing Solutions to Customer Needs

Thursday, 27. July 2006 Rhein Chemie Corporation, a wholly owned subsidiary of chemicals company LANXESS Corporation, announced that the week of July 3rd marked the start of production at Rhein Chemie’s Chardon, Ohio site for the polymer dispersion product line that had been relocated from their former Trenton, New Jersey manufacturing site.

Chardon, OH – Rhein Chemie Corporation, a wholly owned subsidiary of chemicals company LANXESS Corporation, announced that the week of July 3rd marked the start of production at Rhein Chemie’s Chardon, Ohio site for the polymer dispersion product line that had been relocated from their former Trenton, New Jersey manufacturing site.

“The Rhenogran product line is a cornerstone of our business so completing this transition swiftly and smoothly as planned is a significant achievement. Our focus is on being able to continue meeting customer needs”, stated Ed Klavin, President and General Manager of Rhein Chemie Corporation. “We thank our customers for their cooperation through this phase and also recognize our employees who have worked hard to manage this transition successfully.”

Administrative functions will complete its move out of the former Trenton headquarters to Chardon by the end of September. Rhein Chemie announced the restructuring of its US operations last August. The consolidation project includes a several million dollar capital investment in equipment and technology with completion targeted for early 2007.

About Rhein Chemie

Rhein Chemie Corporation is a wholly owned subsidiary of LANXESS Corporation, Pittsburgh, PA. Rhein Chemie Corporation is part of the global business unit Rhein Chemie, which is an enterprise in the chemical industry with a history of success spanning over 100 years in the custom additives and services segment. The company with headquarters in Mannheim, Germany employs some 1,000 people who each year manufacture and market products for numerous areas of the rubber, lubricant, plastics and polyurethane industries. The company has subsidiaries and production sites in Europe, Asia and North/South America.

About LANXESS

LANXESS Corporation was formed when the Bayer Group combined most of its chemical businesses and large segments of its polymer activities. The company began operating as a legal entity in the United States on July 1, 2004. LANXESS Corporation is a member of the German LANXESS Group that was spun-off from Bayer in January 2005. The LANXESS Group manufactures high-quality products in the areas of chemicals, synthetic rubber and plastics. The companies’ portfolio comprises basic and fine chemicals, color pigments, plastics, synthetic rubber and rubber chemicals, leather, textile processing chemicals, material protection products and water treatment products.

Chardon, 27. July 2006

Forward-Looking Statements

This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.