---

DuPont to Acquire Herberts, the Coatings Company of Hoechst

29 October 1998

DuPont to Acquire Herberts, the Coatings Company of Hoechst

    WILMINGTON, Del., Oct. 29 -- DuPont today
announced it has agreed to acquire Herberts, the coatings company of Hoechst
AG, for $1.89 billion (DM 3.13 billion).  The acquisition, pending government
approvals, would create the world's third largest coatings company and the
leading automotive coatings supplier with combined sales of $3.7 billion.
    "This acquisition is consistent with DuPont's intent to establish global
leadership positions in our core businesses through selective investments that
capitalize on attractive cost positions and technology synergies," said DuPont
President and Chief Executive Officer Charles O. Holliday, Jr.  "This action
is similar to those we have taken recently to build stronger global positions
for our Lycra(R) elastane and titanium dioxide businesses.  The Herberts
acquisition will enable our automotive coatings business to increase its
contribution to shareholder value."
    "The fit between Herberts' and DuPont's automotive coatings businesses is
exceptional," said Louis F. Savelli, president of DuPont Automotive.  "The
merger of complementary assets, technology and regional market strengths will
create a much stronger business that can grow profitably and better serve
customer needs on a global basis."
    DuPont is the leader in automotive coatings in both North and South
America.  Herberts is the leading supplier of automotive coatings in Europe.
Combining the two companies' resources will lead to faster development of new
technologies and markets in the developing regions, according to Savelli.
    Each company has developed new technology in environmentally acceptable
products such as low-emission waterborne and powder coatings as well as
products that contain no hazardous air pollutants.  Concurrently, research
continues to develop more durable coatings that resist scratches and acid-etch
environmental damage.
    DuPont Automotive has nine manufacturing facilities, six of which are in
North America, three in Europe, and joint in South America and the
Asia/Pacific region.  Herberts operates 37 manufacturing facilities, 30 of
which are located in Europe, three in North America, one in South America and
three in Asia with a number of minority interest joint ventures in the
Asia/Pacific region.  Combined, DuPont Automotive and Herberts currently
employ 14,000 people.
    Founded in 1802, DuPont is a global research and technology-based company
committed to better things for better living.  DuPont serves worldwide markets
including food and nutrition; agriculture; health care; fashion and apparel;
home and construction; electronics; and transportation.  The company operates
in about 70 countries and has 83,000 employees.