Press Release

Basel, 14 October 2003

Price increase for Sodium Gluconate, Glucono-delta-Lactone and their derivatives

Basel, October 14, 2003 – A very difficult market environment led to a massive price decline for sodium gluconate, glucono-delta-lactone and their derivatives over the last years. In order to provide high quality products at competitive prices to the market, Jungbunzlauer reduced continuously manufacturing and administration costs. Despite all intensive efforts we did not achieve cost reductions in an extent to fully compensate the steady price erosion. As a consequence the financial results for this product group are very unsatisfying.

Today we are again confronted with additional unfavourable developments. Rising raw material costs due to bad corn harvest in Europe as well as increases in energy, chemicals' costs and freight rates will further negatively affect the financial performance of the business.

We are therefore compelled to raise price for sodium gluconate in dry and liquid form (sodium gluconate, EMF, Naglusol and gluconic acid) by 15%. Price for glucono-delta-lactone, slightly less sensitive to some cost factors will be increased by 10%. These increases will be effective immediately or as our contractual obligations permit.