LANXESS’s Functional Chemicals business unit supplies polymer additives, phosphorus and specialty chemicals, and organic and inorganic colorants for a variety of industrial sectors. Most of these specialty products are used by the plastics producing and processing industry, which is the most important business sector, accounting for about two thirds business unit sales. Water treatment is another core strength of the Functional Chemicals business unit.

This comprehensive product portfolio depends on the manufacturing facilities in Leverkusen and Krefeld-Uerdingen in Germany and in Lerma, Mexico. In addition, the business unit has one of the world’s largest production networks for phosphorus chemicals, extending from phosphorus trichloride to various phosphates and phosphonates.

As a leading player in the field of organic pigments for plastics coloring, the business unit offers a broad portfolio of dyes and pigments under the Macrolex and Bayplast trade names, featuring color variety, purity, availability and reproducibility. Macrolex dyes have been approved by the US Food and Drug Administration (FDA) for the coloring of polyethylene terephthalate (PET), probably the world’s most prevalent plastic for the manufacture of lightweight, break-resistant beverage bottles.

The Functional Chemicals business unit belongs to the Performance Chemicals segment of LANXESS, which achieved sales of USD 3,127 million in fiscal year 2007.

Shanghai, April 17, 2008