2 July 2007

INEOS CHLORVINYLS COMPLETES SALE OF ITS E-PVC BUSINESS TO VINNOLIT

INEOS ChlorVinyls has today announced that it has completed the sale of its Emulsion PVC (E-PVC) business to Vinnolit GmbH & Co. KG, following approval from the European Commission. The value of the deal is not disclosed.

The sale consists of the commercial goodwill of the INEOS ChlorVinyls E-PVC business along with its E-PVC production facilities at Hillhouse (UK) and Schkopau (Germany). The deal also includes an agreement for Vinnolit to offtake the entire E-PVC output at Porto Torres (Italy).

The E-PVC business has an annual turnover of approximately €150 million.

INEOS ChlorVinyls has retained its European VCM and Suspension PVC (S-PVC) businesses at Runcorn and Barry in the UK; Wilhelmshaven and Schkopau in Germany; and Porto Marghera, Porto Torres and Ravenna in Italy.

VCM/S-PVC is the largest business of INEOS ChlorVinyls, with the Group's production capacity standing at around 1.1 million tonnes of VCM and 1.4 million tonnes of S-PVC. S-PVC finds its principal uses in the construction and packaging sectors; whilst VCM is used primarily within the INEOS supply chain.

Chris Tane, CEO INEOS ChlorVinyls comments: "This sale represents the best option for the E-PVC business, as it is core to the strategic growth of Vinnolit who will be able to take the business forward in the long term."

ENDS

For further information please contact the INEOS ChlorVinyls Press Office:

UK
Craig Welsh
Telephone: 01928 511528
Email: craig.welsh@ineoschlor.com

Continental Europe:
Anne-Gret Iturriaga Abarzua
Telephone: + 49 4425 98-2203
Email: anne-gret.iturriaga.abarzua@ineosvinyls.com