Creation of a new mid-sized enterprise in Bavaria / Degussa to spin-off its NCN activities as AlzChem

Dusseldorf (ots) - Effective October 1, 2006 Degussa AG,
Dusseldorf, will be placing the NCN business at its Trostberg and
Schalchen sites in Bavaria, Germany, into a new legal entity known as
AlzChem Trostberg GmbH. AlzChem will be a strong mid-sized player
with clear regional roots.

Dr. Klaus Engel, Chairman of Degussa's Board of Management, on the
decision: “Our NCN activities operate in a difficult market and do
not currently meet the profitability targets we have set ourselves as
the world's leading specialty chemicals company. To give this
business the necessary future prospects we are therefore
transferring it to an independent legal entity. Given the commitment
shown by everyone involved and, above all, the constructive role
played by the representatives of the workforce and the German labor
union IG BCE, I am optimistic about its future development.”

The clear goal is to increase the flexibility of these operations
and reduce costs through strict implementation of the structures of a
mid-sized enterprise with a regional focus. To provide a sound basis
for the future of these activities, Degussa has therefore initiated
talks with representatives of the workforce on a solidarity pact,
including a contribution by employees. AlzChem's objective is to
align itself optimally to market requirements and increase its
independence from Degussa's other activities.

AlzChem will be run by Stefan Greger (Managing Director
Administration) and Dr. Joachim Semel (Managing Director
Technology). Present employment contracts will be transferred to the
new company.

NCN chemicals are products with typical nitrogen-carbon-nitrogen
bonds. A whole range of new products in this class have been
developed in Trostberg. The main applications are agriculture (e.g.
crop protection, growth regulators and multi-purpose fertilizers),
chemical products (e.g. pigments, pharmaceutical active substances
and building blocks for chemical syntheses) and nutrition (e.g.
creatine).

Degussa is the global market leader in specialty chemicals. Our
business is creating essentials-innovative products and system
solutions that make indispensable contributions to our customers'
success. In fiscal 2005 around 44,000 employees worldwide generated
sales of 11.8 billion euros and operating profits (EBIT) of
940 million euros.

Originaltext: Degussa AG
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ISIN: DE0005421903

Contact:
Hannelore Gantzer
Spokeswoman
Corporate Communications

T +49-211-65041-368
F +49-211-65041-527

hannelore.gantzer@
degussa.com