Main highlights

Net income up at EUR 961 million Growth in all units—revenues from present operations up 6% Organon—returning to growth, investing in future product sales and pipeline Intervet—excellent growth Coatings—picked up in second half after challenging start Chemicals—strong performance following successful portfolio realignment Positive contribution from incidentals Dividend maintained—EUR 1.20

Arnhem, the Netherlands, February 7, 2006 — Akzo Nobel (Euronext Amsterdam: AKZ; NASDAQ: AKZOY) today reported net income of EUR 961 million for the full-year 2005, slightly ahead of the 2004 figure of EUR 945 million. Effective implementation of the company’s global strategy is driving growth in all units, with revenues from present operations up 6%.

Commenting on the company’s financial performance, CEO Hans Wijers said: “Our strategy is effectively overcoming challenges and driving positive developments throughout Akzo Nobel’s businesses. The company is in a strong financial position and we are well positioned for investments in growth.

“Organon achieved its major objective for 2005 with a return to topline growth, while Intervet had an excellent year as good revenue growth and lower costs contributed to a strong double-digit profit increase. After a tough start to the year, Coatings recovered well in the second half, boosted by successful price increases and rapid growth, particularly in the emerging markets. The benefits of the portfolio realignment at Chemicals were also clearly evident as our focused activities improved revenues and profits.”

The 2005 figures show that total EBIT for the year decreased 3% to EUR 1,486 million. The company’s R&D expenses were EUR 834 million, which is 6.4% of sales, up 2% from last year.

The fourth quarter figures for 2005 were also announced today, with Akzo Nobel reporting that revenues from present operations rose 10%, mainly due to strong sales across the board, especially at Organon and Coatings. EBIT rose substantially as a result of special benefits received by Organon, partially offset by higher R&D and marketing expenditures and restructuring and impairment charges. Net income more than doubled year on year to EUR 317 million, boosted by net incidental gains.

Outlook
Added Wijers: “We expect to deliver continued sales improvements across our portfolio and we aspire to further grow earnings at Intervet, Coatings and Chemicals. As in the last quarters of 2005, at Organon we will try and find the right balance between the required expenditures in R&D and marketing and sales for new products with the ambition to protect our margin.

We are in excellent financial shape and the company is in a strong position to significantly accelerate its growth plans and build on the positive developments of 2005. We will continue to manage our balance sheet in a highly disciplined manner, whereby other options for shareholder value creation, such as a share buy-back program, are evaluated against investments and acquisitions for growth.”