Paris, March 20, 2009 ---- Rhodia is scheduling an extraordinary meeting of its Central Works Council on March 27 to launch an information and consultation procedure about plans designed to improve the competitiveness of production facilities run by its Polyamide and Novecare enterprises in France. Details will also be presented about the impact of these plans on employees working on the affected sites. These measures form part of a global program already underway aimed at achieving structural savings of €150m by the year 2011 throughout the Group.

During this extraordinary Central Works Council meeting, employee representatives will be able to examine plans relating to the following measures:

Belle-Etoile project - Polyamide
The aim of the competitiveness plan drawn up for the Belle-Etoile site (Rhône-Alpes) is to increase industrial and organizational synergies between the activities of Engineering Plastics and the Intermediates & Polymers chain. The implementation of this project could lead to the reduction of 40 positions and the creation of four new jobs.

Valence project - Polyamide
The downsizing of the Valence site (Rhône-Alpes), to bring production in line with current and future fiber sales volumes, is aimed more particularly at concentrating production on a single polymerization line. This project could lead to the reduction of 80 positions and the creation of 35 new jobs.

Melle project - Novecare
The competitiveness plan drawn up for the Melle site (Poitou-Charentes) includes a series of actions targeting production process enhancement, reorganization and skills development. The implementation of this plan could lead to the elimination of 12 positions and the creation of two new jobs.

The implementation of these different measures could lead to the reduction of 132 positions and the creation of 41 new jobs - an overall reduction of 91 positions. Rhodia will do everything in its power to limit the impact of these measures on the employees concerned and to ensure that redeployment is provided under the best possible conditions.

Rhodia is an international chemical company resolutely committed to sustainable development. As a leader in its businesses, the Group aims to improve its customers’ performance through the pursuit of operational excellence and its ability to innovate. Structured around six Enterprises, Rhodia is the partner of major players in the automotive, electronics, flavors and fragrances, health, personal and home care markets, consumer goods and industrial markets. The Group employs around 14,500 people worldwide and generated sales of €4.8 billion in 2008. Rhodia is listed on Euronext Paris.

For further details, please visit our institutional website at www.rhodia.com

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