DSM invests in bio-materials plant, China

This investment by DSM is in line with the company’s ambitions to develop
bio-based performance materials to meet customers’ growing needs for improved
performance and environmental benefits at competitive costs. In response to the
growing market need for eco-friendly solutions, PHA offers a new biorenewable
polymer platform for a broad range of applications from automotive to biomedical
and electronics.

In parallel with the venture investment, DSM and TGBS intend to work
together to create new business in bio-based performance materials. The company
has earmarked up to €200mln for venturing investments until 2012. China is one
of the core regions in the global investment strategy of DSM Venturing.

“As PHA is produced through fermentation by micro-organisms, it also offers
the opportunity for DSM to extend its competencies both in Life Sciences and
Material Sciences to a new family of biopolymers,” said Vice President New
Business Development Performance Materials of DSM, Babette Pettersen.

President DSM China, Weiming Jiang: “The transition from petroleum-based
materials to bio-based materials is a major global trend. With our expertise in
biotechnology and in performance materials DSM is excellently positioned to
facilitate this transition.”

The plant’s construction will commence in Q2 2008, and is expected to start
production in early 2009. It will have an annual production capacity of 10,000
tonnes of PHA.