Ciba Specialty Chemicals announces sales agreement with Clariant for Masterbatch business

04.10.2006, Basel, Switzerland

Ciba Specialty Chemicals announces sales agreement with Clariant for Masterbatch business

• Further strengthens focus on core businesses
• All employees to transfer to Clariant

Ciba Specialty Chemicals has announced today that it has signed an agreement to sell its Masterbatch business to Clariant. The sales price was not disclosed. The divestment is expected to be concluded in the fourth quarter of 2006 after the necessary regulatory approvals.

All approximately 300 employees will transfer to Clariant, the Basel-based, specialty chemicals company. The Ciba Masterbatch business, with sales of CHF 80 million, operates in Malaysia, Saudi Arabia and France.

Armin Meyer, Chairman of the Board and CEO of Ciba Specialty Chemicals comments: “We have decided to divest the Masterbatch business as part of our strategic portfolio management, aiming to further strengthen our focus on the core businesses, Plastic Additives, Coating Effects and Water & Paper Treatment. Within the plastics market, we will continue to leverage our core competencies in the research, development, manufacturing and distribution of high performance additives and pigments.

We are convinced the divestment is the best solution also for the Masterbatch business, as it will become part of a leading industry player, with a global presence in this field.”

A masterbatch is a customized blend of additives or pigments dispersed in customer specific resin and concentration intended for direct molding or extrusion.

Ciba Specialty Chemicals (SWX: CIBN, NYSE: CSB) is a leading global company dedicated to producing high-value effects for its customers’ products. We strive to be the partner of choice for our customers, offering them innovative products and one-stop expert service. We create effects that improve the quality of life -- adding performance, protection, color and strength to plastics, paper, automobiles, buildings, home and personal care products and much more. Ciba Specialty Chemicals is active in more than 120 countries around the world and is committed to be a leader in its chosen markets. In 2005, the Company’s continued operations generated sales of CHF 6.1 billion and invested over CHF 270 million in R&D.

http://www.cibasc.com

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