Reichhold Announces Price Increases for Alkyd, Polyester and Oil-Modified Urethane Coating Resins Sold in North America; Effective April 1, 2005

RESEARCH TRIANGLE PARK, N.C.--March 9, 2005--Reichhold announced off-list price increases today for all alkyds, polyesters and oil modified urethanes sold into the North American coatings market. All soya-based products will be increased $0.02 per pound while all other alkyds and oil modified urethanes will receive a $0.04 per pound increase. The increase for polyesters will also be $0.04 per pound. These increases are effective for all orders shipped on or after April 1, 2005, or as contracts allow.

"We continue to see significant cost pressures in both raw materials and transportation," said Tony Rende, business director for Reichhold's North American coatings business. "With no immediate relief in sight, we must adjust our pricing to reflect these market conditions in order to minimize continued margin erosion.

"As always, we thank our customers for their support and encourage them to contact their Reichhold sales representative if they have any questions regarding this increase," Rende concluded.

Reichhold's alkyd technologies are sold under the Beckosol(R), Kelsol(R) and Amberlac(R) trade names. Polyester and urethane products are sold under the Aroplaz(R) and Urotuf(TM) names respectively. Information on the full range of Reichhold's product lines for coatings, including product bulletins and MSDS, can be found on-line at www.reichhold.com. For product inquiries, call (800) 431-1920 or e-mail productinfo@reichhold.com.

About Reichhold

Founded in 1927, Reichhold, with its world headquarters and technology center in Research Triangle Park, North Carolina, USA, is together with its parent, Dainippon Ink & Chemicals (Tokyo, 4631) the world's largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold has manufacturing operations throughout North America, Latin America, the Middle East and Europe.