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Reverse share split: notice of launch


Rhodia announces today the launch of its reverse share split by attributing one new share for 12 existing shares, as approved by the Annual General Meeting held on May 3, 2007. The reverse share split will be effective on June 12, 2007, with the new shares being listed on Euronext Paris.

A legal notice has been published this morning in the “Bulletin des Annonces Légales Obligatoires” (BALO).

There will also be a reverse split of the American Depository Receipts (ADRs) on June 12, 2007.

Main terms of the reverse share split

Rhodia will proceed with the reverse share split of its share capital on June 12, 2007, pursuant to the decision at the Annual General Meeting held on May 3, 2007. The allotment ratio will be one new share with a nominal value of €12 for 12 existing shares having a nominal value of €1 each. As a result, Rhodia’s share capital will be composed of 100,350,121 consolidated shares, subject to any adjustments to the number of shares between now and June 12, 2007.

As of June 12, 2007, Rhodia’s consolidated shares will be traded on Eurolist by Euronext Paris under “RHA”, with ISIN code FR0010479956.

Shares forming a multiple of 12 will be automatically exchanged for consolidated shares.

Shareholders who do not possess a number of shares exactly dividable by 12 are responsible for taking the necessary action to purchase or sell the balance of shares. Rhodia will pay transaction costs incurred up to an amount of €7 (taxes included) per file for shareholders holding shares in bearer or registered1 form until July 27, 2007.

Unconsolidated Rhodia shares will continue to be traded on Eurolist by Euronext Paris under “RHANR”, with ISIN code FR0000120131 for a period of six months from the start of the reverse stock split or until December 12, 2007.

After the expiry of a two-year period following the start of the reverse share split and the publication of a notice in a financial newspaper, or by June 12, 2009, consolidated shares not reclaimed by their holders will be sold in the market and the net proceeds of the sale will be held on behalf of such holders for 10 years in a blocked bank account at BNP Paribas Securities Services. At the expiry of 10 years, the outstanding sums due to such holders will be transferred to the Caisse des Dépôts et Consignations and will remain at the holders’ disposal subject to the thirty year statute of limitations period, after which the sums revert to the Republic of France.

A notice describing the main terms of this transaction will also be published on Eurolist by Euronext Paris on June 8, 2007.


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