RESEARCH TRIANGLE PARK, N.C. - Reichhold's executive management team, led by President and CEO John S. Gaither, has reached an agreement with Dainippon Ink and Chemicals, Inc., (DIC) for a management buyout. Reichhold has been the wholly owned subsidiary of DIC since 1987. The agreement was signed on September 12, 2005, with plans to close on September 30, 2005.

DIC had planned a restructuring of the company and concluded that the sale of all shares of Reichhold to the existing management team was in the best interest of both firms.

Gaither was asked by DIC to rejoin Reichhold in 2004 and quickly assembled the executive team of former and current Reichhold veterans who are participating in the management buyout.

Under the terms of the agreement, although DIC will retain the Austrian coatings operations, both DIC and Reichhold will be free to continue to independently supply the worldwide coatings markets.