Sales of EUR 2,357 million (+20%) and operating results of EUR 293 million (+34%).
- Strong growth in Pharmaceuticals activities; growth in the Chemicals sector and steady performance by the Plastics sector.
- Net income of the Group (EUR 238 million) reflecting much less significant non-operating elements than in the 1st quarter of 2005.

Sales in the 1st quarter of 2006 reached EUR 2,357 million, up by 20% compared to the 1st quarter of 2005. Sales were up in all three sectors: Pharmaceuticals (+56%), Chemicals (+13%) and Plastics (+8%). REBIT (EUR 293 million) improved by 34% in the 1st quarter of 2006 compared to the 1st quarter of 2005. The operating margin (REBIT on sales) reached nearly 13%, up from the 1st quarter of 2005 (11%). The operating results for the Pharmaceuticals sector tripled, those of the Chemicals sector grew by 7% and the Plastics sector recorded a performance comparable (-2% ) to that of its excellent 1st quarter 2005.

The net income of the Group reached EUR 238 million in the 1st quarter of 2006. It included a net capital gain on the sale of Industrial Foils to Renolit (EUR 103 million) and a negative balance of non-recurring items of EUR 88 million, including EUR 77 million for restructuring costs in connection with implementing steps to achieve the 2010 objectives of the Pharmaceuticals Sector’s “INSPIRE1” project. The result from the 1st quarter 2005, which included EUR 445 million in results of discontinued operations and a negative balance of non-recurring items of EUR 322 million. Cash flow2 for the 1st quarter of 2006 amounted to EUR 357 million and REBITDA3 to EUR 406 million. The net debt to equity ratio dropped to 37% at the end of the 1st quarter 2006 compared to 43% at the end of 2005. Sales for the Pharmaceuticals Sector4 (EUR 672 million) in the 1st quarter 2006 improved by 56% ; they were up in all therapeutic areas, in particular the “cardiometabolic” area including EUR 114 million for fenofibrate, the blockbuster from Fournier Pharma, which exceeded our expectations. Research expenditures (EUR 108 million; 16% of sales) were up significantly in the 1st quarter of 2006. The operating results for the Pharmaceuticals sector were particularly high in the 1st quarter of 2006 and reached EUR 124 million. For the year 2006 overall, the results and the margins for Solvay Pharmaceuticals will improve compared to 2005. The Pharmaceuticals sector is confident in its capacity to meet the objectives set for the year 2010 in the framework of the INSPIRE1 project.

Sales for the Chemicals sector improved 13%. Results (REBIT of EUR 88 million) increased by 7% in the 1st quarter of

2006 compared to the already high level of the 1st quarter of 2005. This performance was possible thanks to the persistence

of a good global balance between supply and demand, a strict control of costs and sales prices that were up in certain

activities, in particular soda ash and fluorinated specialties, in an environment of increasing energy costs that reached very

high levels.
Sales in the Plastics Sector improved by 8%. Results (REBIT of EUR 104 million) held steady at a level (-2%) comparable to the exceptional results from the 1st quarter of 2005. Specialties (Specialty Polymers and Inergy Automotive Systems) increased compared to the 1st quarter 2005 due to higher volumes, whereas price increases overall limited the impact of the increase in costs. The Vinyls activities were in line with the 4th quarter 2005 but posted a lower performance compared to the exceptional one from the 1st quarter 2005. The resumption in demand observed for PVC, after a more solid demand than expected for the season, should permit a continuation of price hikes while the prices of ethylene are up significantly.

“The three sectors in the Group have had a very good start in 2006. Overall for 2006, the Solvay group should record higher sales and operating results, taking into account the current macroeconomic conditions.”

1 See also comments page 7

2 Net income plus total depreciation

3 REBITDA : REBIT, before recurring depreciation

4 Income from Pharmaceuticals includes results from Fournier Pharma since August 1, 2005.