Goldschmidt Chemical to Increase Prices for Organics and Silicones 

HOPEWELL, Va., October 15, 2007 – Effective today, Goldschmidt Chemical Corporation’s Industrial Specialties and Personal and Household care business lines will increase off list prices for products marketed in North America.   

Organic products including quaternary compounds, surfactants, amine derivatives and specialty additives will increase between $0.05/lb. and $0.07/lb. Silicone products will increase up to $0.03/lb.  Select products will be subject to higher increases.  

The major reasons for this increase are regulatory compliance requirements and continuing increases in logistics and security compliance expenses.  Additionally, the cost of select raw materials continues to climb steadily.  

“Goldschmidt Chemical Corporation makes every effort to increase productivity and reduce costs,” said Dr. Reinhold Brand, President of Goldschmidt Chemical Corporation -- part of the Evonik Industries group -- and General Manager, North America Care & Surface Specialties business unit. “However, we cannot continue to absorb rising costs despite our best efforts to reduce our costs.”

Company information

Evonik Industries AG is the creative industrial group which operates in three highly profitable, promising business areas: Chemicals, Energy and Real Estate. Evonik is a global leader in specialty chemicals, an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our strengths are creativity, specialization, continuous self-renewal, and reliability.  

Evonik Industries is active in over 100 countries around the world. In fiscal 2006 around 43,000 employees generated sales of €14.8 billion and operating profit (EBIT) of over €1.2 billion. Evonik plans to enter the capital market in the first half of 2008.  

Disclaimer

In so far as forecasts or expectations are expressed in this press release and where our forward-looking statements concern the future, these forecasts, expectations and statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Evonik Industries AG assumes no obligation to update the forecasts, expectations or statements contained in this release.   For more information, contact: W. Steve Turner Goldschmidt Chemical Corporation Phone: 804-452-5651 1-800-446-1809 / 5651 steve.turner@degussa.com