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08-25-2008

Ciba: Strategic Moves to Reshape Portfolio

Ciba, Basle, Switzerland, is planning to make changes to the portfolio over the coming months. The Company is planning a joint venture in Plastic Additives, as well as acquisitions for Coating Effects, to strengthen market positions and develop new areas of technological application potential. In plastics, this joint venture will expand operational capacity in the Middle East, where rapid growth in this region will build on the Company’s global leadership position in plastic additives. In the next few weeks, announcements will be made concerning these initiatives.

With SAP now live across the organization, the Company is now in a position to implement its new operating model. Industry focused platforms are being created to better leverage the Company’s six technological core competencies and develop higher margin market potential.

The new model will be fully effective by January 1, 2009 and will bring a number of benefits across the Company, such as a greater degree of transparency and a deeper level of business accountability. In essence each business will manage and report its own operations, with profit and loss responsibility and a lean support structure. All the plastics businesses for example, (which currently comprise Base Polymers and Polymer Products in the Plastic Additives segment, along with pigments for Plastics in Coating Effects) will become one unit.

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