PR Newswire/Les Echos/

Press release

RHODIA TO ACCELERATE ITS GROWTH IN INDIA WITH THE ACQUISITION OF 
PI INDUSTRIES' ENGINEERING PLASTICS BUSINESS

Paris, December 20th, 2010 ---- Rhodia announces the signing of a binding
agreement to acquire PI Polymer, the engineering plastics business of the 
Indian company PI Industries Ltd. This transaction supports the Group's 
ambition to increase its market share in the Indian polyamide compound market 
to more than 15% by 2015.

"This acquisition will reinforce the already strong positions we have in
fast-growing economies. We have identified strong synergies with our 
engineering plastics business in terms of product range and customer portfolio
that will dramatically accelerate our growth in India", commented François 
Hincker, President of Rhodia Engineering Plastics.

He added: "Rhodia and PI Industries share a common vision and values with 
regard to responsible chemistry and we are fully committed to provide the 
highest level of customer service, product quality and social responsibility. 
Combining these core values with PI Polymer's expertise and Rhodia's global 
footprint, we plan to rapidly expand this activity, with a capacity increase 
scheduled shortly".

PI Polymer forecasts about $13 million sales revenue for its fiscal year
2010/11. The acquisition price represents an estimated 2010/11 EBITDA multiple
of around 7x. The transaction includes all the assets used and held by PI
Polymer, primarily one industrial facility that employs more than 80 people, 
R&D capabilities, customer base and logistics network in India. Subject to 
various customary closing conditions, the completion of the transaction is 
expected to be finalized by the end of March 2011.

This acquisition will strengthen the Group's presence in India, where 
Technyl(r) engineering plastics are already imported. Rhodia has operated in
the country since 2001 through its surfactants business, serving the home &
personal care and coatings markets.

PI Industries Limited ("PIIL") founded in 1947 in Udaipur, Rajasthan, is
listed on the Mumbai Stock Exchange. PIIL operates under the following three
business units, Agri Input (manufacturing and distribution of Agro 
Chemicals-Pesticides, Insecticides and Herbicides); Custom Synthesis (Custom
Synthesis in the areas of Fine Chemicals, Agro Chemicals and Pharmaceutical
Intermediates); and PI Polymer (Engineering plastics compounding for the end
use in Automotive, Electricals and Home Appliances).

For further information please visit: www.piindustries.com

Rhodia Engineering Plastics is a global specialist in performance solutions
based on polyamide 6 and 6.6 for injection molding, extrusion and blow
molding. Under the flagship brand Technyl(r), Rhodia's Engineering Plastics
activity serves various markets as automotive and transportation, electrical
and electronics, construction and industrial equipment, consumer goods.

Rhodia is an international chemical company resolutely committed to 
sustainable development. As a leader in its businesses, the Group aims to
improve its customers' performance through the pursuit of operational 
excellence and its ability to innovate. Rhodia is the partner of major players
in the automotive, electronics, flavors and fragrances, health, personal and 
home care markets, consumer goods and industrial markets. The Group employs 
around 13,600 people worldwide and generated sales of EUR4.03 billion in 2009.
Rhodia is listed on Euronext Paris.

For more information, please visit our institutional website at
http://www.rhodia.com

Contacts

Media Relations
Lamia Narcisse        Phone +33 (0)1 53 56 59 62

Investor Relations
Maria Alcon           Phone +33 (0)1 53 56 64 89
Benjamin Bruneau      Phone +33 (0)1 53 56 64 42
                      
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