SABIC to Acquire Owens Corning's Share in StaMax BV: Owens Corning To Continue to be Sole Supplier of Proprietary Glass Fibre

PARIS, April 1 -- SABIC EuroPetrochemicals announced today that it will acquire Owens Corning's 50 percent share in StaMax BV, a joint venture formed in 1999. This gives SABIC full ownership of this company that produces StaMax(R) P long glass fibre polypropylene composite material. Under the new arrangement, Owens Corning will be the sole supplier of PerforMax(R) glass fibre. StaMax BV will use Owens Corning's unique patented process and this proprietary glass fibre to produce and sell material in the European market.

As part of the agreement, SABIC will manufacture StaMax P composite material under license from Owens Corning and will have exclusive production and sales rights of StaMax P for the European market.

In North America, Owens Corning will assume the sole responsibility for the market development and sales of materials based on this technology.

  Financial details of the agreement will not be disclosed.

  Rapid Growth

"We are very pleased with the progression of our relationship with SABIC in terms of the StaMax business venture," said Dick Lantz, president, Owens Corning Composite Solutions. "StaMax P long glass fiber polypropylene material has proven to be an excellent opportunity, creating rapid growth in the semi-structural automotive market. It has always been a part of Owens Corning's overall strategy to work with our partners to provide the necessary resources and technology to grow the overall composites market." Lantz added that this new agreement enables Owens Corning to continue to focus on the creation of new markets and applications for composite materials.

Since formation of StaMax BV in 1999, the business venture has seen a rapid increase in sales with continued significant growth projected for the future.

Excellent Opportunities

"SABIC plans to further intensify the marketing of StaMax P long glass fibre polypropylene composite material as a lightweight, cost-effective solution for semi-structural car parts," said Peter van Pul, director of SABIC's Automotive Polymers business. "We have excellent opportunities to do this, as a result of our solid position as a supplier to the automotive industry. Car designers are choosing StaMax P for a growing number of applications because it is lighter than traditional materials, it has excellent mechanical properties and provides maximum freedom of design."

StaMax(R) P Long Glass Fibre Polypropylene Composite Material

StaMax P is a lightweight, long glass fibre polypropylene thermoplastic for semi-structural applications that replaces metal and bridges the gap between short-fiber compounds and glass mat thermoplastics (GMT). It was developed by SABIC EuroPetrochemicals (formerly DSM) in partnership with Owens Corning. The two companies founded StaMax BV in 1999, and set up a production line at DSM Specialty Compounds' compounding plant in Genk (Belgium). The thermal and mechanical properties of StaMax P composite material -- such as high heat-deflection temperatures, low thermal expansion and high stiffness, high impact resistance, low creep and high tensile strength -- make it highly suitable for semi-structural applications in the automotive industry. Applications include front-end modules, dashboard carriers, door modules and under-body shielding. StaMax P long glass fibre polypropylene thermoplastic is widely accepted and increasingly used in these applications throughout the European automotive industry.

SABIC EuroPetrochemicals

SABIC EuroPetrochemicals has a workforce of about 2,300. The company owns two petrochemical sites, one in Geleen (Netherlands) and one in Gelsenkirchen (Germany), where it produces polypropylene, polyethylene and hydrocarbons. It sells about 2.6 million tons of polymers annually, mainly in Europe. Additional information is available at www.sabic-europe.com .

SABIC EuroPetrochemicals is part of SABIC, the Middle East's largest petrochemicals company, which is based in Riyadh, Saudi Arabia. SABIC's business activities have been organized into six Strategic Business Units (SBUs): Basic Chemicals, Intermediates, Polyolefins, PVC & Polyester, Fertilizers and Metals. SABIC has two large industrial sites in Saudi Arabia (Al-Jubail and Yanbu), with sixteen world-scale production complexes. In addition, SABIC has interests in three production complexes in Bahrain. Over the last sixteen years, SABIC's overall production capacity has increased considerably. In 2002 it amounted to 40.6 million tons per annum.

Owens Corning

Owens Corning is a world leader in building materials systems and composites solutions. Founded in 1938, the company had sales of $4.9 billion in 2002 and employs approximately 19,000 people worldwide. Additional information is available on Owens Corning's website at www.owenscorning.com .