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  The addition of International Specialty Products is a defining moment for our company.

Strategic advantages

One plus one equals more than you might imagine

Good chemistry. Nothing comes closer to describing the addition of International Specialty Products Inc. (ISP) to Ashland.

This is a defining moment for our company, and one that clearly signals our intention to become the best specialty chemical company in the world.

While many companies have relied on products and problem-solving support from both Ashland and ISP, there has not been a great deal of overlap in the marketplace. Rather than competing, the companies’ products and technologies have been complementary: ingredients and capabilities for end-uses ranging from pharmaceutical to food and beverage to hair, skin and oral care to energy. Our joint list of customers includes some of the most well-known names in the world.

Perhaps the most distinguishing characteristic of the new combined product portfolio is that our ingredients typically represent a small fraction of our customers’ overall costs, while providing a high and important level of functionality and value. In other words, we can make the difference between a mediocre or average product and a superior one for our customers and our customers’ customers.

Even stronger research and development
The addition of ISP also boosts the clout wielded by Ashland’s research and development laboratories. We are dedicated to innovation, regularly refreshing our portfolio with game-changing products and services, providing solutions to our customers’ most challenging formulation needs. ISP brings to Ashland nearly 300 additional scientists from around the world and more than 400 active patents.

Strategic advantages:
Complementary sales offerings in familiar segments

Approximated from management estimates, 2010 ISP sales data and Ashland sales data.

The deal notably increases our strength in the field of water-soluble polymers, an important element across our product lines. Ashland’s expertise in cellulosics is now complemented by ISP’s strengths in acetylene- and acrylic-derived chemistries, deepening our skill set for comprehensive formulations and for integrating breakthrough developments. From a competitive standpoint, this intellectual property is protected by those patents, plus our trade secrets and manufacturing know-how.

For customers in six large markets – hair care, skin care, oral care, pharmaceutical, energy and food and beverage – the addition of ISP makes us a primary source for key formulation ingredients and technical problem-solving. This will broaden the opportunities to take advantage of Ashland’s well-known ability to create good chemistry in business relationships, leading to winning solutions for both parties.