ARNHEM, the Netherlands - The Board of Management and Supervisory Board of Akzo Nobel N.V. and the Board of Imperial Chemical Industries PLC (ICI) announced that they have reached agreement for a cash offer by Akzo Nobel for ICI. Under the terms of the transaction, ICI shareholders will receive 670 pence in cash for every ICI share. The offer price values the entire existing issued ordinary share capital of ICI at approximately 8.0 billion pounds.

            In addition, ICI shareholders will receive a second interim dividend of up to 5 pence per share paid pro rata by reference to where the completion date of the proposed offer falls between July 1, 2007 and December 31, 2007.

            In connection with the acquisition of ICI, Akzo Nobel has entered into an agreement with Henkel KGaA (Henkel) to sell all assets and liabilities comprising the Adhesives and Electronic Materials Divisions for 2.7 billion pounds (€4.0 billion) in cash. The transaction with Henkel is not a condition to completion of Akzo Nobel's acquisition of ICI and will be implemented following the effective date.