Reliance to Buy Trevira®

June 28, 2004

Hattersheim, Germany -- Reliance Industries Ltd reached an agreement with Deutsche Bank AG in Frankfurt to acquire the Trevira Group. The acquistion agreement is subject to certain conditions, however, including the receipt of regulatory approval from the European Union.

It is the second international acquistion by RIL as well as its first intensional aquisition in polyester was announced from Mumbai today.

"We expect that the strong commitment of Reliance to the growth of polyester and our intergration into polyester raw materials, will help both Trevira and Reliance to serve all our customers in Europe and other world markets with superior polyester products and even better supply chain services," said Subodh Sapra, president, polyester Sector.

Bernd Sassenrath, Trevira CEO said "we envisage that this transaction will enable Trevira not only to benefit from the access to new markets and raw materials sources but also to leverage the Trevira brand and contribute our marketing skills and technology in specialty polyester fibers.

Trevira is the leading producer of branded polyester fibers in Europe with a manufacturing capacity of 130,000 tons of polyester staple fibers and filament yarns per annum. The production occurs in four European locations including Bobingen and Guben, Germany; Silkeborg, Denmark; Quevaucamps, Belgium.

As the market leader in Europe of high value applications of polyester, Trevira is a widely known and well recognized brand both amongst customers and producers in synthetic fibers. The company is a highly specialized manufacturer of polyester products, especially in automotive, contract/hospitality and home textiles. The company also has several valuable patents and technologies together with a strong R&D setup with substantial accumulated research knowledge, a company spokesman said.

Reliance feels its strength in the integration and the management of large scale manufacturing facilities will provide operational advantage to Trevira. The Trevira brand and products will now have access through the established RIL sales network to India, one of the fastest growing textiles markets in the world. Trevira believes it will provide RIL a strong footprint in Europe and place it in a position to cater to all market segments of polyester fibers and filament yarns world-wide. Trevira's also believes its knowledge base developed over a period of time will be complementary to RIL's existing R&D facility (the Reliance Technology Center). The synergy will provide comprehensive and innovative solutions for apparel and non-apparel applications of polyester to customers world-wide, said a Trevira spokesman.



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