16 September 2011 To the Shareholders Dear Sir or Madam ...

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AkzoNobel’s markets. In particular, AkzoNobel can fully utilise the Group’s networks and reputation to further access the Korean-OEM mobile phone market and build on the Group’s strong position in the German automobile supplier industry. The Group’s product portfolios are complementary with AkzoNobel’s current portfolio, both in terms of focus segments and geographic split. In addition, the acquisition of the Company offers an excellent opportunity for AkzoNobel to significantly boost industrial coatings activities and increase its operations in coatings for aluminium coil, a strength of the Company which currently comprises only a minor portion of AkzoNobel’s business. Intention of the Offeror with regard to the Company The Offeror intends to eventually effect a merger with the Company and the Offeror intends to continue the existing principal activities of the Group after closing of the Offer, subject to developing a plan to achieve optimal integration of AkzoNobel’s other industrial coatings operations with the activities of the Group in order to capture the commercial and strategic benefits and growth potential of the combined businesses and to realize synergies (the ‘‘Integration Plan’’). The Offeror will assess all the relevant aspects and through the Integration Plan determine the necessary arrangements to be made. The Offeror expects no material change in the deployment of financial resources or fixed assets of the Group in the near future and although the Offeror currently has no firm intentions to dispose of any material assets or inject any assets or businesses into the activities of the Group, the Offeror does not rule out the possibility that any of these element may form part of the Integration Plan that will be developed after closing of the Offer. Capturing and developing the talents of employees is one of AkzoNobel’s key values and this will be a cornerstone of the Integration Plan for the combined businesses. The Offeror intends that the employment of the employees of the Group will be continued, but the Offeror does not rule out that the future operational plan and Integration Plan for the combined businesses will impact employees of the combined businesses of AkzoNobel and the Group in due course. As at the Latest Practicable Date, no details of the Integration Plan had been finalized. Sch I-3 (i), (ii), (iii) INFORMATION ON THE OFFEROR The Offeror is a wholly-owned subsidiary of AkzoNobel and was incorporated on 6 October 2010 under the laws of Germany. AkzoNobel is the largest global paints and coatings company and a major producer of specialty chemicals. AkzoNobel supplies industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for its customers. AkzoNobel’s portfolio includes well known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, AkzoNobel is a Global Fortune 500 company and is consistently ranked as one of the leaders in the area of sustainability. With operations in more than 80 countries, AkzoNobel’s 55,000 people around the world are committed to excellence and delivering Tomorrow’s Answers TodayTM. AkzoNobel’s common shares are listed on the stock exchange of Euronext Amsterdam.
TAXATION AND INDEPENDENT ADVICE It is the responsibility of the overseas holders of the Shares and who wish to accept the Offer and to take any action in relation thereto, to satisfy themselves as to the full observance of the laws of any relevant jurisdiction in connection therewith, including the obtaining of any governmental, exchange control or other consents which may be required, the compliance with other necessary formalities, regulatory or legal requirements. The overseas holders of the Shares will be responsible for the payment of any transfer or cancellation or other taxes or duties due by such overseas holders of the Shares in respect of their respective jurisdictions. None of the Offeror, Deutsche Bank, the Hong Kong Branch Registrar or any of their respective directors or any other parties involved in the Offer is in a position to advise the overseas holders of the Shares on their individual tax implications. The Shareholders are recommended to consult their own professional advisers as to the tax implications that may arise from accepting the Offer. None of the Company, the Offeror, the Directors, the professional adviser(s) to the Offeror and the Company or any other parties involved in the Offer accepts any responsibility for any tax effect on, or liabilities of, the relevant Shareholders. ACCEPTANCE AND SETTLEMENT Your attention is drawn to the further details regarding the procedures for acceptance and settlement and acceptance period as set out in Appendix I to this Composite Document and the accompanying Form of Acceptance. EXTENSION OF THE OFFER PERIOD If the Offer has not been declared or has not become unconditional as to acceptances on or before the 60 days after the posting of the Composite Document, and/or the Offer has not been declared or has not become unconditional in all respects on or before the 81 days after the posting of the Composite Document, the Offer will lapse unless the Offer is extended with the consent of the Executive in accordance with the Takeovers Code. Sch I-5(i) HONG KONG STAMP DUTY Seller’s ad valorem stamp duty at a rate of 0.1% of the market value of the Shares or consideration payable by the Offeror in respect of the relevant acceptances of the Offer, whichever is higher, will be deducted from the amount payable to the relevant Shareholder on acceptance of the Offer. The Offeror will arrange for payment of the stamp duty on behalf of accepting Shareholders in connection with the acceptance of the Offer and the transfer of the Shares. Sch I-6A PAYMENT Provided that the Offer has become, or has been declared, unconditional in all respects, payment in respect of acceptances of the Offer will be made as soon as possible but in any event within 10 days of Sch I-15(i)
Page 1 and 2: Deutsche Bank AG Hong Kong Branch F
Page 3 and 4: Confirmation of financial resources
Page 5 and 6: have a material adverse effect on,
Page 7 and 8: eceive the Shares from the Controll
Page 9: Kenny Chae if there are additional

16 September 2011 To the Shareholders Dear Sir or Madam ...

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