Degussa to Bundle Western European Sales in Zürich

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Degussa, the world’s number one specialty chemicals company, is centering the administration for all of its Western European Sales operations in Zürich, Switzerland. Basing its administration of the Western European sales representatives in the Greater Zurich Area will allow Degussa to lower its service costs and simplify its European organization. The company’s chief reasons for choosing Zürich are its excellent logistical connections with the rest of Europe and the availability of a highly skilled workforce with distinct foreign language proficiencies.

Employees in Zürich can serve our customers in their mother tongue, without an accent, and to their complete satisfaction.

Degussa, the world’s leading specialty chemicals company is bundling its administration of the Western European sales representatives in Zürich, which makes Zürich the central hub for Degussa’s sales activities in Europe. Administration for the sales force will be consolidated in Degussa International AG (DIAG) from now on. DIAG and the Greater Zurich Area AG announced the move in a joint press release.

DIAG expects business volume in Zürich to reach approx. € 5.5 billion in 2006. Of DIAG’s 60 employees, roughly two thirds work in Zürich. The European Customer Service Center in Zürich will serve customers in Western Europe in their various respective languages. DIAG will also manage some 260 sales representatives in Europe from here, with wage accounting, expense accounting, personnel management, and reporting to be centered in Zürich. By bundling its sales services in a single platform spanning multiple countries, DIAG reduces its service costs and the complexity of its regional organization.

There are several reasons that speak for choosing Zürich. The Greater Zurich Area lies at the heart of Europe and offers outstanding logistics and connections to the European traffic and transportation system. The region’s manpower is highly skilled and well-versed in foreign languages. Other key advantages include Switzerland’s flexible labor laws and business-friendly climate, said DIAG Managing Director Dr. Volker Grunwald. “We depend on being able to respond flexibly to changes in the marketplace. Switzerland’s labor laws and work climate give us this scope for action.” Dr. Grunwald mentions another important advantage. ”Employees in Zürich can serve our customers in their mother tongue, without an accent, and to their complete satisfaction.”

“Degussa is a perfect example for an international company focusing its administrative functions in the Greater Zurich Area to achieve cost savings,” said Sonja Wollkopf, Chief Operating Officer of the Greater Zurich Area AG, commenting on the DIAG’s decision. Wollkopf hopes this will serve as a precedent for other companies who could take their cue from this new business model for bundling administrative functions.

About Degussa

Degussa is the global market leader in specialty chemicals. Degussa’s business is creating essentials - innovative products and system solutions that make indispensable contributions to our customers’ success. In fiscal 2005 around 44,000 employees worldwide generated sales of 11.8 billion euros and operating profits (EBIT) of 940 million euros.

Degussa International AG is a wholly owned subsidiary of Degussa AG, and bundles the group’s sales activities in Western Europe. In fiscal 2005, DIAG’s 61 employees administered revenues of €810 billion. http://www.degussa.com

About Greater Zurich Area AG

The Greater Zurich Area AG, a nonprofit organization, is the marketing association for the Greater Zurich Area business region. It recruits international companies abroad and assists them with setting up companies and making investments in the Greater Zurich Area. Its sponsor is the “Stiftung Greater Zurich Area Standortmarketing,” a public-private partnership that was established in November 1998. Since that time, its membership has grown to include the cantons of Aargau, Glarus, Graubünden, Schaffhausen, Schwyz, Solothurn and Zürich, the cities of Zürich and Winterthur, and several businesses. http://www.greaterzuricharea.ch

Contact:

Marc Neumann, International Media Relations, Greater Zurich Area AG, New York

Tel.: +1 917 330 9476

Marion Graber, Corporate Communications

Greater Zurich Area AG, Zürich

Tel: +41 44 254 59 07

Dr. Volker Grunwald

Managing Director

Degussa International AG,

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