REICHHOLD CUSTOMER MAGAZINE FOR EUROPE March, 2012

Reichhold and Umicore, a global materials technology producer, announced on March 14th their collaboration to introduce a sustainable alternative curing technology for unsaturated polyester resins.

Reichhold deploys Umicore’s latest cobalt technology to develop a solution that combines the benefits of cobalt-based systems with long term sustainable and environmentally friendly characteristics safeguarding the cobalt future.

Umicore’s Cobalt and Speciality Materials (CSM) business unit has successfully introduced this patented business concept and product into the catalyst market (after introducing it in 2011 into the paint, ink and coating industry). In addition to the excellent application results in the different markets, Umicore®ECOS ND15 also offers a breakthrough in terms of improved hazardous and toxicological properties.

This technology will be a user-friendly alternative to accelerators currently in use by both resin manufacturers and composite fabricators.

It offers customers the ability to deal proactively with the potential hazard classification of cobalt carboxylate.

The two companies have successfully tested the new technology in some selected resin systems and are working towards qualifying an entire product range for customers in the composites industry.

“We have achieved very encouraging results in the testing of our resins and gel coats. We can

directly replace the traditional cobalt accelerators with the ECOS ND15 , keeping similar good curing performances as with the same peroxides that are in use with our systems today,” says Reichhold Europe Composites Technology Director Egil Holtmon.

“This is a very important strategic initiative which confirms Reichhold’s responsible and proactive approach aimed at converting environmental and safety matters into opportunities to enhance composites long-term sustainable growth and competitiveness against alternative materials (steel, aluminium and wood)”, says Alberto Piccinotti, Reichhold VP Commercial Europe.

Ben Gilliams, General Manager Umicore Specialty Materials Brugge, said: “Umicore invests some 6% of its revenues in research and development. The Umicore®ECOS ND15 cobalt technology is an example of how innovation in materials and processes is at the heart of our success and plays a key role in our contribution to sustainable development.”

For more information about this new technology please send an e-mail to: corporate.communications@reichhold.com

New Innovative Cobalt Technology offers alternative to existing curing accelerators

Reichhold Increases its Financial Flexibility

Ragnhild: Roger, by way of introduction, please tell us a little about yourself and your tenure at Reichhold?

Roger: Well, I was asked by John Gaither to join Reichhold as CFO in 2005, right around the time of the MBO. I had been engaged by Reichhold’s General Counsel at the time as a consultant and worked in this capacity for about one year prior to being hired as a full-time employee. My project was to advise the company on various restructuring options as our then-parent company, DIC, was looking for ways to sell the company. I really learned a lot about Reichhold during the months I was a consultant; not only about the organization and its challenges, but I got to know the senior leaders quite well and gained an appreciation for the rich history and culture of Reichhold. Frankly, this was a big reason I decided to give up my independent consulting practice and become a full-time employee and owner. I could see that the company had real potential upside if we could fix some of our legacy challenges and operate and grow this business effectively. And I felt like the people of this company had a true commitment to achieving this potential, and I wanted to be a part of this great opportunity!

Prior to joining Reichhold, I led my own independent consulting firm from 1987 to 2005, helping companies with business negotiations, valuations, financial restructurings and occasionally serving as interim chief financial officer for a number of clients. From 1981 to 1987, I was a partner with King & Willis Certified Public Accountants. I began my career with Peat, Marwick & Mitchell (former “Big 8” accounting and auditing firm) after graduating from the University of North Carolina at Chapel Hill with a BS in Business Administration.

Ragnhild: We have read the press release issued by Reichhold about the refinancing of the company.

Can you explain to us the practical consequences of this agreement with the bond holders?

Roger: Put simply, we were able to reach agreement with the majority of our current bondholders to extend the maturity date for our repayment from 2014 until 2017. We were also able to defer any interest payments for the next two years, which equates to approximately $36 MM USD in cash savings. These two aspects alone significantly help us to stabilize our financing as we continue to recover from the severe impact the global recession has had on our business and industry. We have more “runway”, as we like to put it, for our business to gain momentum and deliver consistently improved profitability. With the announcement of this Exchange Offer, we are sending a strong message that Reichhold is credible and financially stable with long-term viability and many options.

Ragnhild: Now that the company has significantly improved its cash position, what are the plans for achieving sustainable performance improvements?

Roger L. Willis

Roger L. Willis, Chief Financial Officer, Treasurer and Chief Supply Chain Management Officer talks about the recent refinancing, current status and future outlook for the company to Ragnhild Norheim, Corporate Communication Specialist.

Everywhere Performance Matters

Roger: We have a four-point strategy that we have been implementing: 1) Improve our Operations; 2) Secure New Funding/Re-Financing; 3) Explore Merger and Acquisition Opportunities; and 4) Restructure, which we have accomplished through the Exchange Offer previously discussed. We are also actively managing our vendor and supplier relationships which have required a lot of my attention in my primary dual role managing finance and supply chain. Due to our performance last year, we faced credit rating downgrades by S&P and Moody’s which, not unexpectedly, led to tightened credit terms with our major suppliers. The good news is that with our refinancing announcement, our vendors and suppliers are working with us for ‘win-win’ compromises and our credit terms are returning to normal. We are paying our invoices in a timely manner, which is a clear demonstration to the outside world of our credibility and an excellent defense against any future negative credit actions. With a few more quarters of improved profitability, I am confident that the ratings agencies will assess Reichhold fairly and we’ll see our credit ratings upgraded.

There is no question that our business must generate more cash. So we’ve taken difficult decisions late last year to “right-size” our cost structure by prudently reducing costs wherever possible. We’ve improved our working capital through new agreements with key customers, such as the Sherwin-Williams Company, and maintaining strict discipline in our inventory and receivables management.

We are focused intently on margin management, and staying ahead of raw material prices which we anticipate to continue upward. All our efforts are directed toward improving our profitability and cash flow. Accurate forecasts and inventory management are key, and the first two months of 2012 indicate we’re off to a good start and all trends are in the right direction.

Ragnhild: Do you think consolidation and rationalization is needed in the European Composites Industry and what role do you expect Reichhold to play?

Roger: We have been quite vocal about our belief that the industry is in real need of consolidation, and that this type of rationalization is critical for a

full recovery and sustained health of this business. We are and have been for some time exploring interesting options with both strategic players and private equity sponsors. We believe that there are many opportunities in both our businesses, Coatings and Composites, globally as well as regionally. The good news is that we have time to consider many options and ultimately make the best decision to keep Reichhold intact and uphold our core values and vision. We have the leverage to be a major driver in this type of transformation, and we intend to be the “kingmaker” based on Reichhold’s long history, brand and franchise strength, and global footprint. Let’s see what the coming 24 months will hold in this regard, but we expect to be a primary mover.

Ragnhild: One last question: What inspires you to keep doing what you are doing and motivates you each morning when you come into work?

Roger: The great thing about being an owner of this business is that I am fully invested in the outcome and can have a major impact on what happens. You don’t always get this opportunity when you are a consultant. So that is one thing that I have really enjoyed about my role here at Reichhold. I also very much enjoy the opportunity to oversee a global organization, to look at the business in a much broader perspective and become attuned to regional and cultural nuances while still holding the team and myself accountable for the ultimate best outcome for Reichhold.

It has also been very challenging to lead the global Supply Chain team for a company where raw materials represent 80% of our costs. The impact of world events on demand and supply dynamics requires that I am acting as a “citizen of the world”, and it is a privilege to be an executive leader of our business during these unprecedented times!

Transportation Update - Fire Protection on Rail VehiclesReichhold’s Fire Retardant group are pleased to announce that after developments in our FR Gelcoat Technology, we have been successful in the first stage of our Programme to develop systems compliant to EN 45545-2.

Whilst remaining a draft, the expectation is that this standard will be fully implemented in the near future. It is now common for composite part producers working in rail applications to request compliant materials for new contracts.

The following materials and construction have been fully tested by Exova Warrington Fire and have been shown to be meet Hazard Level 1 requirements

• NORPOL® GD 10133 H X3 – 0.5 mm cured film• DION® FR 7721-00 – 5-6 mm (4 layers 450 g/m2 Glass)

The new standard is a combination of three separate tests, measuring Flame Spread, Heat Release and Smoke/Toxicity. Compliance depends on the Operation/Design Categories combined

with the type of Part to be produced in order to determine the required criteria to be met.

Hazard Level 1 covers most parts used in Surface Rolling Stock + Trams.

Additional Details of the standard and a full set of the test reports are available from our Commercial Team.

Certificates and Approvals

Plant Type Registrar Certifcate date ExpirationDubai, UEA ISO 9001-2008 DNV 17 Apr 2011 04 Jun 2014Etain, France ISO 9001-2008 AFAQ 13 Aug 2009 12 Aug 2012Fredrikstad & Sandefjord, Norway

ISO 9001-2008 DNV 28 Feb 2012 13 Mar 2015

Mitcham, UK ISO 9001-2008 DNV 01 Oct 2009 02 Oct 2012Parma, Italy ISO 9001-2008 DNV 22 May 2009 21 May 2012Ranjangaon, India ISO 9001-2008 DNV 06 Apr 2011 06 Apr 2014Tianjin, China ISO 9001-2008 LRQA 07 Mar 2012 06 Mar 2015

All Reichhold plants are ISO 9001-2008 certified. The new plant in Ranjangaon, India was certified in April 2011, while the latest to achieve this certifcation was the Tianjin plant in China. They received their certificate on March 14th less than four months after their start-up.

The plant in Fredrikstad and the Technology Center in Sandefjord were recertified on February 28th for another 3 years.

Many of Reichhold’s products are approved by a number of the major certification bodies like DNV, Germanisher Lloyds, Lloyds Register of Shipping etc.

Everywhere Performance Matters

As a part of the ongoing efforts to adjust both the company’s organizational structure and key competencies to the identified market requirements and trends, VP Commercial Europe, Alberto Piccinotti, as the leader of the European Commercial Team, is pleased to announce important changes implemented throughout 2011 in the Reichhold’s European Commercial Team.

Changes in the Commercial Organization in Europe

Sales

The European sales organization has been split into two main regions:

• Northern – Northern, Western Europe and UK led by Maarten van den Ouden

• Southern – Central, Southern and Eastern Europe managed by Livio Bollani

Maarten has been with Reichhold since 2003 managing our global credit organization prior to moving into sales and gradually expanding his area of responsibility from UK to Nordic countries, Benelux and finally France, Spain and Portugal.

Livio is an experienced Composites business executive who joined Reichhold in June 2010 as Commercial head of Southern Europe and then extending his area of competence to Central and Eastern Europe.

Livio’s and Maarten’s responsibilities include regional Sales Management, European Business Management, Key Account Management and Field Technical Service.

Technology

Technology is a vital part of Reichhold’s commercial organization. Egil Holtmon is the European Technology Director, located in Sandefjord, Norway where Reichhold’s new state of the art R&D Center for Europe is situated.

The Technology organization is directly aligned with the Business and Key Account Managers to allow for resource prioritization and allocation consistent with business goals and customer requirements.

Egil, Livio and Maarten all report to Vice President Commercial Europe Alberto Piccinotti and form the European Commercial Management Team.

The European Commercial Management Team, from left Egil Holtmon, Alberto Piccinotti, Maarten van den Ouden and Livio Bollani

The ultimate goal of Reichhold’s renewed organization structure is to have a customer oriented, fast responsive team able to dedicate well defined resources to meet either short term needs, mainly addressed at country / regional level or to address longer term needs and industry fundamental challenges, like the ongoing REACH and CLP implementation requires.

The article dedicated to Cobalt Carboxylates alternative is a clear example of this type of activity.

CAS

Consistent with Reichhold’s new Europe Commercial organizational structure, the Customer Service (CAS) organization are now split in two main teams:

• Northern• Southern

CAS team in Sandefjord, Norway, front row from left: Leena Kollstrøm, Britt Sandøy, Bente Trollsås, back row from left: Terje Hansen, Maria Løffellehner and Andrej Ruscak

CAS team in Parma, Italy, in front Germano Massari , back from left Sabina Stringhini, Patrizia Sandei and Claudia Baricchi

The Northern Team is based in Sandefjord, Norway and serves all countries in the Northern, Western and Central Europe as well as UK.

The team consists of:

• Britt Sandøy (team leader) – responsible for BeNeLux, UK and specific customers in Poland

• Terje Hansen – responsible for Denmark, Iceland and specific customers in Poland and Sweden

• Bente Trollsås – responsible for Norway and Sweden

• Leena Kollstrøm – responsible for Finland and the Baltic states

• Maria Løffellehner – responsible for Germany, Austria and Switzerland

• Andrej Ruscak – responsible for Czech Republic and the rest of Eastern Europe

The Southern Team is based in Parma, Italy and the team serves all countries in Southern and Eastern Europe.

The team consists of:

• Patrizia Sandei (team leader) – responsible for specific customers in France

• Sabina Stringhini – responsible for Slovenia, Croatia, Serbia, Greece, Malta, Cyprus, Egypt, Tunisia and specific customers in Italy

• Germano Massari – responsible for Italy• Claudia Baricchi – responsible for France, Spain

and Portugal

Styrene Classification and Labelling Presentation

VP Commercial Alberto Piccinotti, will give a presentation on Styrene Classification and Labelling at the 11th World Pultrusion conference on 22-23 March in Istanbul.

The Presentation will discuss different scenarios and approaches on the actual Styrene regulatory status in Europe offering an objective and science based view.

Topics are

• REACH and CLP fundamentals• Styrene Producer Association (SPA) and Cefic

UPR Sector Group Position and activity• Styrene Classification Process and Timing

The full presentation can be downloaded from Reichhold’s website: www.Reichhold.com under Composites/ Literature & Documentation/ Technical Paper or send an e-mail to corporate.communications@reichhold.com.

Everywhere Performance Matters

Everywhere Performance Matters

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Phone: +1 919 990 7500 Fax: +1 919 990 7749

China - Tianjin plant started production in December 2011

Reichhold opened its new manufacturing plant in Tianjin in northern China in December 2011.

With 20 manufacturing sites and 5 Technology Centres across the globe, Reichhold has further strengthened its presence in the global market with its entry into this large and rapidly growing market.

The facility is set up with a planned annual production capacity of 38,000 MT but with a potential expansion to 60,000 MT. The plant will produce a full Reichhold composites product line, including Unsaturated Polyester resins, Vinyl Ester resins, Gelcoats and Bonding Pastes. The market applications will cover wind power, high performance anti-corrosion, marine, high speed train, industrial construction, electronics and electrical industry.

Mr. John Gaither, Chairman, President & CEO, Reichhold Industries, Inc. commented “The market in China is very important to Reichhold. It is the largest composites market in the world and is growing rapidly. Many of our global customers have a Chinese presence and need from Reichhold the same products available in China as elsewhere

in the world. China is deeply committed to wind energy and, as the leading supplier of polyester resins for wind mill blades, Reichhold needs to be able to supply locally our innovative resins.”

Guenther Tappeiner, Global Vice-President Manufacturing, said ”The project was completed on time and within budget. The technical features implemented throughout the project are world class in Safety, Quality and Efficiency. I’m very confident that with this operation Reichhold will be a true leader in servicing the market in China.”

Reichhold Tianjin, December 2011