Akzo Nobel N.V. — M&A Activity 2011

Jan 24, 2011

Akzo Nobel N.V. Corporate Communications Strawinskylaan 2555 P.O. Box 75730 1070 AS Amsterdam T +31 (0)20 502 7833 F +31 (0)20 502 7604 www.akzonobel.com

Press release

January 24, 2011

AkzoNobel invests €90m in growth strategy to supply world's largest pulp mill

AkzoNobel has signaled its strategic intent to accelerate growth by investing close to €90 million in a new facility being built in Brazil. The plant, operated by the company's Pulp and Paper Chemicals business, Eka Chemicals, will supply the world's largest pulp mill.

The agreement – with Eldorado Celulose e Papel – emphasizes the importance of high growth markets to AkzoNobel and will help drive the medium-term strategy of doubling revenue in Brazil to €1.5 billion. It also underlines the value the company attaches to securing long-terms partnerships with customers.

The investment – AkzoNobel's biggest ever in Latin America – is centered on further expanding Eka Chemicals' sustainability focused Chemical Island concept. It will involve supplying, storing and handling all chemicals for the 1.5 million tons per year green field mill, which is being constructed in the northern part of Três Lagoas City. The mill is expected to come on stream in September 2012.

"This 15-year agreement confirms our intention to accelerate growth and expand our activities in the world's high growth regions," said Rob Frohn, the AkzoNobel Board member responsible for Specialty Chemicals. "We are about to make one of the biggest investments in our history, which emphasizes both the importance of Latin America to our growth ambitions and our commitment to the pulp and paper industry."

Added Pulp and Paper Chemicals General Manager Jan Svärd: "Future demand for pulp and paper chemicals in Latin America is projected to increase substantially over the next 15 years. This agreement therefore represents an exciting opportunity for us to expand our operations in the region and further underlines the value our customers attach to our Chemical Island concept."

He went on to explain that Eka Chemicals will be building a world scale sodium chlorate production unit to supply the projected demands of the Eldorado mill, which has been designed to accommodate three pulp lines. The new Eka Chemicals facility will also supply other key customers in Brazil. Work on the new pulp mill site started in June last year.

Commenting on the agreement, Eldorado President Rogerio D'Alcantara Peres, said: "Building the world's largest pulp mill requires working with reliable partners who can provide the best technology. AkzoNobel's proven Chemical Island concept, together with the company's world class expertise and strong commitment to sustainability, meant that they were a natural choice for this major project."

The new facility will expand Eka Chemicals' well established pulp and paper activities in Brazil, where the business already operates its Chemical Island concept at several mills, as well as running production units in Jacareí, Eunapolis, Três Lagoas, Rio de Janeiro and Jundiaí.

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AkzoNobel is the largest global paints and coatings company and a major producer of specialty chemicals. We supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are a Global Fortune 500 company and are consistently ranked as one of the leaders on the Dow Jones Sustainability Indexes. With operations in more than 80 countries, our 55,000 people around the world are committed to excellence and delivering Tomorrow's Answers Today™.

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Corporate Media Relations, tel. +31 20 502 7833 Corporate Investor Relations, tel. +31 20 502 7854 Contact: Oskar Bosson Contacts: Huib Wurfbain and Ivar Smits

Safe Harbor Statement

This press release contains statements which address such key issues as AkzoNobel's growth strategy, future financial results, market positions, product development, products in the pipeline, and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest Annual Report, a copy of which can be found on the company's corporate website www.akzonobel.com.