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CSM sells stake in Nedalco to Royal Cosun

2 December 2004

Diemen/Breda, The Netherlands, 2 December 2004 - CSM and Royal Cosun have reached an advanced stage in their negotiations on the sale of CSM’s 39% stake in Koninklijke Nedalco. The intended transaction will make Cosun the sole owner of Nedalco. The takeover price for CSM’s stake in Nedalco amounts to EUR 24.5 million and is expected to result in a net book profit of about EUR 14 million begin 2005.

Koninklijke Nedalco, based in Bergen op Zoom, the Netherlands (approximate turnover: EUR 75 million; workforce: over 100) produces natural alcohol for the liquor industry and for industrial use. As grain products are increasingly replacing molasses (a by-product of sugar production) as a raw material in the production of alcohol, the stake in Nedalco no longer fits in with the CSM strategy.

If a sufficiently positive trend emerges in the prospects for bio-ethanol, Nedalco will consider developing its operations in this direction. By increasing its stake in Nedalco, Cosun will create an opportunity to participate in this process.

Where applicable, consultation procedures have been started with employees’ representatives.