London January 2001 -

Kohlberg Kravis Roberts & Co., L.P. ("KKR") has announced that is has acquired major divisions from Laporte plc ("Laporte") for total consideration of $1.175 billion. The businesses acquired comprise the Pigments and Additives, Formulated Products and Compounds and Electronics divisions, which together contributed approximately 55 percent of Laporte's 1999 consolidated sales from continuing operations, yielding a combined turnover of approximately $800 million.

Following completion of the transaction, the divisions have been merged into a new company, Rockwood Specialties Inc. headquartered in Princeton, New Jersey (US), and retains the existing operating management. Mike Kenny, previously Divisional Chairman and a main board Director of Laporte, will be the President. The new company will be owned in its entirety by KKR and the management team.

Ned Gilhuly, Managing Director of KKR Ltd., said, "This acquisition represented an opportunity to acquire a group of businesses with strong track records and superior market positions managed by an outstanding team with a clear vision for their future as an independent company. The specialty chemicals sector has been undervalued by the public market for some time, and we look forward to working with Mike Kenny and his team to maximize the growth potential we see for this new company."

Mike Kenny said, "There is a common theme in these businesses, focusing around additives (pigments, additives, water technologies, timber treatment chemicals, electronic chemicals) and material processing (compounds, photomasks and wafer reclaim) - two very sound markets with significant global expansion opportunities. Our strategy is to capitalize on this by building our company both organically through new product development and through acquisitions. We believe that in partnership with KKR we can grow our business as a strong international player in additives and material processing."

The transaction is being financed by a combination of equity and debt with KKR providing the equity (in combination with management) and Chase, Merrill Lynch and Goldman Sachs providing the debt.

This represents KKR's sixth major European investment in the last year including the acquisitions of Wincor Nixdorf (previously Siemens Nixdorf Retail and Banking Systems), Wassall, a public UK conglomerate, whose lighting division, TLG, was combined with Zumtobel, a privately held Austrian lighting manufacturer, and Tenovis (previously Bosch Telecom), a leading provider of private branch exchange communications systems to business customers in Germany, as well as minority investments in Firstmark Communications Europe and KKF.net.

For further information, please contact:

Kohlberg Kravis Roberts & Co.

Kohlberg Kravis Roberts & Co. KKR was founded in 1976 and is one of the world's leading private investment firms specializing in management buyouts and growth equity investments. KKR has offices in New York, London, and Menlo Park, California. KKR's investment approach is focused on acquiring attractive businesses and working closely with management over the long term to design and implement value creating strategies. KKR currently has two equity funds: a fund organized in 1996 with US$6 billion in committed capital and a European fund that closed in 1999 with approximately US$3 billion of capital.

Further information about KKR can be found at www.kkr.com

A letter from George Letman,
Divisional Managing Director,
Rockwood Electronic Materials

We are very pleased to inform you that Kohlberg Kravis Roberts & Co. (KKR), the world's leading private equity investment firm, reached agreement in September 2000 with our previous corporate parent, Laporte plc, to acquire Laporte Electronics Chemicals, Wafer Reclaim and Photomasks Divisions as part of a broader management-led buyout of Laporte's Pigments and Additives, Formulated Products and Compounds, and Electronic Materials businesses.

This is a great outcome for our customers and our employees. As a result of this transaction, we will be a leading independent specialty chemicals, materials and service company with considerable financial resources and a clear focus on growing our business through new product development, new technologies and by continued expansion of our activities around the world.

KKR is a long-term investor that shares our goal of building our company for the future. Since it's founding in 1976, KKR has invested over $13 billion of equity in more than 90 companies across a wide range of industries. Of particular note, KKR has had great success over the years making investments very much like this one. That is to say, by acquiring well-run businesses from conglomerates or corporate parents that had other strategic priorities and working with management to establish these businesses as independent concerns with the capital, strategic focus, and expertise necessary to achieve their growth potential.

I will continue to lead what now becomes Rockwood Electronic Materials, Electrochemicals, Ultra Pure Chemicals, Photmasks and Wafer Reclaim, as we work to serve you better. All of your other contacts and interactions with our company will also remain completely unchanged. Mike Kenny, previously Divisional Chairman and a main board Director of Laporte plc, is President of our new parent company, Rockwood Specialties Inc.

We at Rockwood Electronic Materials are very excited about the future and I can assure you that we will continue to offer the quality products and service that our customers have come to expect. Our existing investment projects continue completely unchanged and meanwhile it is business as usual.

We go forward as a key part of a leading, independent specialty chemicals, materials and service company with a strong balance sheet, a global presence, and strong positions in every market area in which we compete. I hope you share my enthusiasm for this change of ownership and we look forward to working with you as we build our company for the future.

Yours sincerely

G E Letman
Divisional Managing Director,
Rockwood Electronic Materials