July 30, 2004

FIRST HALF 2004 RESULTS

Results of the first six months of 2004 up 19%

• Pharmaceuticals Sector :
  • Acceleration of strategy: major positive impact of agreements with Wyeth and Bristol Myers Squibb, and parallel strengthening of research programs. Filing of registration dossier for cilansetron in the United Kingdom for the European Union and in the United States.
  • Temporary negative effects on sales and results of the second quarter from current renegotiations of American distribution contracts.

The Solvay Group’s sales in the first half of 2004 reached EUR 3,831 million, up slightly (+1%) compared to the first half of 2003 and up 4% in the second quarter of 2004. At constant exchange rates, sales would have increased 4% in the first half of 2004 and 6% in the second quarter of 2004.

The Group’s net income amounted to EUR 236 million, up 19% compared to the first half of 2003 (EUR 198 million).

Results from the Pharmaceuticals sector increased by 25% in the first half of 2004. As part of an acceleration of its strategy aiming at, among others, the conclusion of partnerships, the sector benefited in the first half of 2004 from the positive impact of the agreements with Wyeth and Bristol Myers Squibb and was thus able to considerably increase (+24%) in parallel its research expenditures. In the second quarter, however, sales and results were affected by the renegotiations now under way for contracts with American distributors, who reduced their purchases and their inventories. The evolution of the numbers of prescriptions was not affected by the renegotiations. This situation is gradually getting back to normal and should not have a persistent negative effect on margins. In addition, Solvay Pharmaceuticals Inc. collected the first instalment (USD 18 million) of compensation from litigation with Barr. Note also that Solvay Pharmaceuticals filed a registration dossier for cilansetron in the United Kingdom for the European Union and in the United States.

We believe that the favorable trends noted over the first 6 months of 2004 will continue. The results from the Pharmaceuticals sector for 2004 should be in line with those from 2003. For the Group as a whole, we remain confident that full-year results for 2004 will compare positively with those of 2003.

To consult the full press release: http://www.solvaypress.com/pressreleases/021026-2-000.htm