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DSM N.V.: DSM to sell urea-licensing business to Maire Tecnimont

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^{Published in Business and Finance on Tuesday, July 28th 2009 at 23:01 GMT, Last Modified on 2009-07-28 23:02:03 by Market Wire}  

HEERLEN, NETHERLANDS--(Marketwire - July 29, 2009) -

Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Maire Tecnimont S.p.A., a leading international engineering and construction group headquartered in Italy, announce today that they have reached an agreement for the sale of DSM's urea-licensing subsidiary Stamicarbon B.V. to Maire Tecnimont for a total consideration of EUR 38 million on a cash and debt-free basis. The intended sale is expected to close by Q4 2009, subject to regulatory and other customary approvals and notifications.

Stamicarbon, founded in 1947, is the world market leader in licensing urea technology with over 250 licensed urea plants located in over eighty different countries and a leading market share in new capacity. Urea, mainly used as a fertilizer, is produced from ammonia and carbon dioxide. Stamicarbon realized net sales of EUR 57 million in 2008 and an operating profit of EUR 25 million. In 2008 Stamicarbon's operating profit was exceptionally high as a result of a number of large contracts closed during the year. The average operating profit for Stamicarbon has been approximately EUR 10 million per year over the past four years.

Stamicarbon employs about 50 people in urea licensing, almost all of which are engineers and technical staff. Stamicarbon licenses patented technology and proprietary know-how to existing and prospective urea producers. Its non-urea licensing portfolio has been transferred to a new entity, Knowfort Technologies B.V., and is not part of the intended sale or the 2008 results of Stamicarbon.

Nico Gerardu, member of the Managing Board of Royal DSM, gave the following comment: "The intended sale of the urea-licensing business is an important step in DSM's accelerated transformation towards a Life Sciences and Materials Sciences company. I am convinced that urea licensing has a much better strategic fit with Maire Tecnimont, a leader in project management and contracting. I would like to thank all Stamicarbon employees for their continued support and substantial contribution."

Fabrizio Di Amato, Chairman and Chief Executive Officer of Maire Tecnimont S.p.A., stated: "This acquisition is a major step towards achieving the objectives set out by the Group's strategic guidelines to grow our Engineering, Procurement and Construction services business in selected sectors of the process plant industry. Stamicarbon will operate as a member of the Maire Tecnimont Group, in particular alongside Tecnimont, and will continue to generate licensing revenues and margins as a standalone activity. Contemporaneously, we foresee that Stamicarbon will enlarge our technology portfolio and, working with Tecnimont, enhance our EPC business in the fertilizer sector through synergies in the commercial, technology and operation areas by improving process efficiency and competitiveness."

Stamicarbon brings both excellent technical expertise and technology on which Maire Tecnimont intends to lever its high quality E&C business, primarily through synergies to be realized in combining technology and EPC contracting.

In September 2007 DSM announced that as a result of the accelerated strategic shift towards Life Sciences and Materials Sciences, a number of businesses which do not fit in with the strategy would be carved out and divested. Urea licensing is one of these businesses.

The divestment process for DSM Elastomers, DSM Agro and DSM Melamine is underway. As reported earlier, DSM has slowed down the process in view of the current financial and economic environment but still aims to complete the disposals within the timeframe of its Vision 2010 strategy.

The intended sale is dependent on regulatory and other customary approvals and notifications and will be submitted to the works councils according to the usual procedures in the Netherlands. One day before the closing, all employees in urea-licensing will be transferred to Stamicarbon B.V., the company to be acquired by Maire Tecnimont, in accordance with Dutch regulations.

Maire Tecnimont

Maire Tecnimont S.p.A. is the parent company of an international industrial group which provides a comprehensive, integrated system of services and installations in four sectors: Chemicals and Petrochemicals, Oil & Gas, Power, Civil Engineering and Infrastructure. The Group has established itself thanks to advanced skills in Project Management and Main Contracting, by implementing complex turnkey projects all over the world, combining high quality and planning standards with a focus on multicultural and environmental issues. The Group, listed on the Milan Stock Exchange, with a presence in 24 countries and 4 continents, currently controls 37 operating companies and can rely on a workforce of 4,300 employees, more than half of whom are outside Italy. At 31 December 2008, the Group reported revenues of EUR 2,463 million and net income of EUR 117 million. For more information: [ www.mairetecnimont.it ].

Stamicarbon

Stamicarbon B.V. is the global market leader in developing and licensing urea technologies and services, delivering optimum environmental performance, safety, reliability and productivity at the lowest investment level. Stamicarbon's services include a unique Full Life Cycle Support service to assist customers throughout the life cycle of a urea plant. Working in close cooperation with licensees, contractors, suppliers and research institutes, the company is constantly developing new processes and upgrading existing technologies.

DSM - the Life Sciences and Materials Sciences Company

Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM's products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM has annual net sales of EUR 9.3 billion and employs some 23,500 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information: [ www.dsm.com ]

 For more information: DSM Corporate Communications DSM Investor Relations Herman Betten Hans Vossen tel. +31 (0) 45 tel. +31 (0) 45 5782864 5782017 fax +31 (0) 45 5782595 fax +31 (0) 45 e-mail [ investor.relations@dsm.com ] 5740680 e-mail [ media.relations@dsm.com ] Maire Tecnimont S.p.A. Communication Office Investor Relations Carlo Nicolais Lawrence Y. Kay Tel +39 06 412235.728 Tel +39 06 412235.536 Fax +39 06 412235.642 Fax +39 06 412235.644 [ comunicazione@mairetecnimont.it ][ investor-relations@mairetecnimont.it ] Image Building Simona Raffaelli, Nicole Zancanella, Alfredo Mele Tel +39 02 89011300 [ mairetecnimont@imagebuilding.it ]

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