Solutia reaches "definitive agreement" over Flexsys purchase

St Louis, Minnesota - Solutia Inc. "has reached a definitive agreement to purchase Akzo Nobel N.V.'s stake in Flexsys, the 50 -50 rubber chemicals joint venture between Akzo Nobel and Solutia."

Solutia, which is still under Chapter 11 bankruptcy protection in the US, requires approval from the the United States Bankruptcy Court before the deal can go through. The two parties said they are moving toward that approval.

Prior to that, however, the two companies need to strike a deal with Dutch employee works council representatives. Also, japanese authorities need to approve the acquisition of Akzo-Nobel's Crystex business. Crystex is the Flexsys trade name for insoluble sulphur, used in the manufacture of almost all tyres.

Solutia and Akzo Nobel have entered into a letter agreement committing the parties to execute the definitive agreement upon completion of consultation with Dutch employee works council representatives. The parties are moving forward to obtain the required approval of the United States Bankruptcy Court before which Solutia's Chapter 11 proceedings are pending, the receipt of required regulatory approvals, finalizing the definitive purchase agreement for Akzo Nobel's Crystex business in Japan and the fulfillment of other customary closing conditions.

Formed in 1995, Flexsys http://www.flexsys.com is the world's leading supplier of chemicals to the rubber industry. With 2005 sales of approximately $600 million, Flexsys employs about 600 people worldwide.

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Press release from Solutia