RHODIA TO SELL ITS GALLIUM BUSINESS TO GEO SPECIALTY CHEMICALS INC (USA)

Paris, July 28, 1999 – Rhodia, pursuing its focus on core specialty chemicals, announces it is selling its Gallium business to GEO Specialty Chemicals, Inc. The deal is expected to be completed by early September 1999.

Gallium is a metal used ultra pure, predominantly in optoelectronics systems (light emitting diodes), in electronics (high frequency integrated circuits), and less significantly in metallurgy (magnetism and substitution to mercury) and in catalysts.

Rhodia’s Gallium business had sales last year of approximately euros 15 million ($ 16 million). The divestment project concerns the complete Gallium business, including the manufacturing facilities located in Stade, Germany and Salindres, France, and administrative offices based in Paris.

The Gallium business would be contributed, partially in the form of assets, to the capital of a new stock company, which would be immediately acquired by GEO Specialty Chemicals, Inc.

 Rhodia, one of the world leaders in specialty chemicals, contributes to improving the quality of life by developing value-added products, services and solutions for the personnal care, clothing, food and healthcare markets as well as for the environment, transport and industry. Rhodia employs 23,500 people worldwide and recorded sales of euro 5,5 billion in 1998. Rhodia has been listed on the Paris and New York stock exchanges since June 25, 1998.

GEO Specialty Chemical Inc. is a specialty chemical manufacturer serving the construction, paper, coatings, oil field and water treatment industries, with annual sales of $200 million.

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