Solutia To Sell Pharma Services Business

Solutia, Inc.’s subsidiary, Solutia Europe SA/NV (SESA), has reached a definitive agreement to sell its Pharmaceutical Services business, comprised of CarboGen AG and AMCIS AG. Under the terms of the agreement, Dishman Pharmaceuticals & Chemicals, Ltd. will purchase 100% of the stock of CarboGen and AMCIS, as well as certain other assets used in the Pharmaceutical Services business, for $74.5 million. This transaction is subject to removal of the restrictions related to the sale under SESA’s Euronotes, authorization by the bankruptcy court overseeing Solutia’s reorganization, and government and regulatory approvals, which are expected by August 31, 2006.

CarboGen and AMCIS provide drug development and commercialization services for pharmaceutical and biotechnology companies. The Pharmaceutical Services business has R&D facilities at three sites in Switzerland: Aarau, Bubendorf, and Neuland. All intellectual property, patents and trademarks, customer contracts, as well as employees of the Pharmaceutical Services business are included in the transaction.

Dishman, headquartered in Ahmedabad, India is a globally focused company involved in the manufacture of APIs, API intermediates, quaternary compounds and fine chemicals.