April 28, 2008

Evonik Industries and Sabinsa have elevated their exclusive marketing partnership with the Personal Care product line of Evonik on a new level. Evonik will now offer more specialized, standardized botanical actives and extracts from Sabinsa, all specifically developed for cosmeceutical use, to the personal care industry worldwide. This new agreement deepens the one-yearold partnership and enables Sabinsa to get their innovative and efficacious active ingredients into the global cosmetic and personal care market by tapping into Evonik's extensive customer base.

Willy Klipp, Senior Vice President & General Manager of Evonik's business line Care Specialties, states: "Collaborating with Sabinsa has allowed us to strategically broaden our ingredients portfolio with novel nature-derived active ingredients. As these bio-active compounds exactly meet the needs of our customers, we want to offer them now another two Sabinsa cosmeceuticals for the development of innovative products and new applications."

Shortly Evonik will introduce Venocin™ (90%), a standardized extract derived from the seeds of the Horse Chestnut tree for the cosmetic market. Horse chestnut extract is clinically proven to benefit people suffering for example from varicose or spider veins. The second "new entry" is Xymenynic Acid, obtained from Santalum album seeds. The standardized powder extract adds an anti-inflammatory effect to personal care products. These products will complement the already existing range of new plant extracts originating from the cooperation with Sabinsa: Tego^® Galanga, obtained from the roots of Kaempferia galangal; Tego^® Policosanol, a mixture of higher aliphatic alcohols extracted from sugar cane wax; Tego^® Arjuna, a standardized extract from the heartwood of the Terminalia Arjuna tree; and Tego^® Turmerone, a distilled fraction of turmeric oil from the root of Curuma longa by a supercritical carbon dioxide process.

These products are produced at Sami Labs Ltd., Sabinsa's national award-winning research centre in Bangalore, India and have been tested for safety and efficacy in their biological research laboratory by advanced in vitro systems like cell lines and bioassays.

"At the first anniversary of our marketing partnership, we are pleased to announce that this successful collaboration has reached a new level. Working with Evonik's business line Care Specialties not only allows us to strengthen the market penetration for our line of active ingredients for the cosmetic industry, but permits us to focus on our core competency of developing safe and effective ingredients for the global market. By leveraging the key strengths of both companies, we are confident we can develop and deliver even more innovative and efficacious products that meet the needs of consumers," stated Dr. Muhammed Majeed, founder and CEO of Sabinsa.

Company information:Evonik Industries is the creative industrial group from Germany which operates in three business areas: Chemicals, Energy and Real Estate. Evonik is a global leader in specialty chemicals, an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our strengths are creativity, specialization, continuous self-renewal, and reliability. Evonik is active in over 100 countries around the world. In its fiscal year 2007 about 43,000 employees generated sales of about €14.4 billion and an operating profit (EBIT) of more than €1.3 billion (preliminary figures).

Sabinsa, founded in 1988 in USA, is a manufacturer and supplier of herbal extracts, cosmeceuticals and fine, specialty and intermediatory chemicals. Sabinsa's mission is to provide alternative and complementary natural products for human well-being. Over the past nine years, Sabinsa has brought to market more than thirty standardized botanical extracts and privately funded several clinical studies in conjunction with prestigious institutions in support of these products. With more than 100 scientists working full time conducting ongoing research both in India and the United States, Sabinsa continues to develop and patent cosmeceuticals for the world market. For more information visit www.sabinsa.com, www.sabinsaeurope.com and www.sabinsacosmetics.com.

Disclaimer: In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertaties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.