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Cytec to Sell Surface Specialties Amino Resins Business

Published on 2005-06-22. Author : SpecialChem

WEST PATERSON, N.J.-- Cytec Industries Inc. (NYSE:CYT - News; "Cytec") announced today that it has reached a definitive agreement to sell its Surface Specialties Amino Resins business ("SSAR") to affiliates of INEOS Group Limited ("INEOS"), for net cash consideration of EUR 64 million ($78 million at 1.22$/EUR), subject to certain closing adjustments. Completion of the transaction is subject to receipt of approval from the Federal Trade Commission (the "FTC"), the European Commission (the "EC"), the receipt of other regulatory approvals and other customary closing conditions.

The proposed sale is made pursuant to Cytec's commitments under orders by the FTC and the EC to divest SSAR following Cytec's acquisition of the Surface Specialties business earlier this year. Net proceeds from the sale will be used to reduce debt incurred to fund the acquisition of Surface Specialties.

The SSAR business is a leading producer of amino resins and includes manufacturing facilities in both Germany and the United States.

David Lilley, Chairman, President and Chief Executive Officer of Cytec commented, "The sale of the Surface Specialties Amino Resins business will complete our commitment to regulators in both the U.S. and Europe concerning our acquisition of the Surface Specialties business earlier this year. We believe SSAR will be a strong addition to INEOS' existing portfolio of world class chemical assets and we wish INEOS and the employees of SSAR well."

Corporate Profile

Cytec Industries Inc. is a specialty chemicals and materials technology company with pro forma sales in 2004, including the Surface Specialties acquisition, of approximately $3.0 billion. Its growth strategies are based on developing technologically advanced customer solutions for global markets including aerospace, coatings, mining, plastics and water treatment.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission.

Source: Cytec Industries Inc.

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