PURAC strategic review results in restructering operation

CSM subsidiary PURAC intends to restructure its operations by integrating the new production plant in Thailand into the overall production capacity and by discontinuing lactic acid production in the Netherlands and Spain as a result of a strategic review. Furthermore, in the Netherlands, the production of lactitol in Gorinchem will be closed down and the manufacturing plant in Ter Apelkanaal will be sold. Overall 160 jobs are affected. The new manufacturing footprint, which will be implemented in the course of 2008, will substantially improve the results of PURAC. The asset write down is expected to range between � 40 million and � 55 million depending on the sale proceeds

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