Diversa falls further into the red

tendered into BASF’s solicited tenderoffer: We believe that the response toBASF’s unsolicited offer demonstratesthat Engelhard stockholdersrecognize that the offer is inadequateand that our exploration of strategicalternatives has the potential to createvalue greater than BASF’s offer. Weappreciate the continued support ofour stockholders as we seek tomaximize value on their behalf.Engelhard’s board unanimouslyrecommends that Engelhardstockholders continue to rejectBASF’s unsolicited offer.

Press release from: Engelhard, Iselin, NJ, USA. Tel:732 205 6360. Website: http://www.engelhard.com(16 Mar 2006)

Catalytica Energy Systems 4Q andFiscal 2005

For its 4Q 2005 (ends 31 Dec 2005),Catalytica Energy Systems Inc hasreported turnover of $600,000 ($1.573M for its 4Q 2004), R&D costs of$1.798 M ($1.821 M), an operatingloss of $3.851 M (operating loss of$3.379 M), a net loss of $1.586 M (netloss of $3.328 M), and a loss pershare of $0.09 (loss per share of$0.19). For its fiscal 2005 the companyhas reported turnover of $3.529 M($5.601 M for its fiscal 2004), R&Dcosts of $7.47 M ($7.498 M), anoperating loss of $16.09 M (operatingloss of $13.463 M), a net loss of$13.466 M (net loss of $13.269 M),and a loss per share of $0.75 (loss pershare of $0.74). There is discussion ofthe business and the results.

Catalytica Energy Systems reports 4Q and Fiscal 2005financial results, 23 Feb 2006, 1-5 (Catalytica EnergySystems Inc, 430 Ferguson Drive, Bldg 3, MountainView, CA 94043, USA. Tel: +1 650 960 3000. Website:http://www.catalyticaenergy.com)

Codexis enters into researchcollaboration with Schering-Plough

Codexis Inc has signed a researchagreement with Schering-Plough Corpto develop a novel synthetic processfor use by Schering-Plough. Thecollaboration will focus on improvingbiocatalyst productivity using Codexis’proprietary MolecularBreedingpharmaceutical process re-engineering platform. Codexis willreceive research funding andmilestone payments upon successfulcompletion of certain objectives of theresearch. Codexis estimates that its

platform technology can reduce costof goods by 35%-65% and capitalexpenditures by over 35%. Inaddition, this platform technology cancreate new intellectual propertyopportunities, which can help extendthe lifetime of drug products.

Press release from: Codexis Inc, 220 Penobscot,Redwood City, CA 94063, USA. Tel: +1 650 298 5300.Fax: +1 650 298 5449. Website:http://www.codexis.com (21 Mar 2006)

Danisco’s integration Genencorproceeding on schedule

The integration of Genencor, whichDanisco, Denmark, acquired on 1 May2005, is proceeding according to plan,as is the associated restructuringprocess. The original synergy target ofDKR 200 M, which was principallybased on cost savings, is on the way tobeing achieved from 2007-2008. Theplant at Beloit will be closed in 2007,after which production will betransferred to Cedar Rapids. Within thesales organization, foodstuffs and feedactivities have been integrated,whereas bioproducts (technicalenzymes) will continue unchanged.

Net Posten, 29 Mar 2006 (Website:http://www.netposten.dk/) (in Danish)

Diversa falls further into the red

Diversa posted a net loss of $54.7 Mfor 4Q 2005 including a one-time noncash impairment fee of $45.7 M,against a net loss of $6 M for thesame period in 2004. The sharp dropis attributed to certain one-timepayments that the company receivedin 2004 in relation to a partnershipwith Syngenta, which it did not receivein 4Q 2005. In Jan 2006, Diversareported it will reorganize its businessto put weight on products with thehighest near term possibilities. For2006, the company will focus onimproving the sales of Ultra-Thin, itsnext-generation alpha amylaseenzyme used to produce bioethanol;formulating processes to manufactureethanol from biomass; and promotingits Luminase enzymes for use in pulpbleaching. Meanwhile, analystsremain cynical of Diversa’s capacity toreturn to profit in 2006. JP Morganprojects a two-year period before thecompany attains a turnaround. A 50%improvement in 2006 productrevenues is predicted, but growth in

overall revenue is expected to dropowing to decreased grants andcollaborations.

Chemical Week, 8 Mar 2006 (Website:http://chemweek.com)

Engelhard to beat analyst estimates in1Q 2006

Engelhard anticipates surpassinganalysts’ 1Q 2006 estimates by 10-19%owing to positive performances fromits technology and materials servicesbusinesses, and ventures unit. Earningsare expected to be 47-51 cts/share,including approximately 2 cts/sharefrom dilution of shares due to thenegative effect of an unsolicited tenderfrom BASF and 4 cts/share from costs.Currently, the average analystconsensus before one-time impacts is48 cts/share. Engelhard will post 1Q2006 earning on 27 Apr 2006.Meanwhile, BASF maintains its hostile$37/share ($4.9 bn) offer for Engelhard.Engelhard and BASF have agreed to aconfidentiality deal, under which BASFcan evaluate non-public data aboutEngelhard. To facilitate the evaluation,BASF had moved the expiration date ofits bid from 17 Mar-14 Apr 2006.Deutsche Banc predicts that Engelhardwill be purchased 1% higher than thecurrent price, or at $40/share.

Chemical Week, 29 Mar 2006 (Website:http://www.chemweek.com)

Engelhard profits to exceedexpectations

Engelhard has announced that 1Q2006 profits will be up on analysts’expectations. Profits per shareincluding special items are expectedto be $0.47-0.51, or 10-19% higherthan analysts’ forecasts.

Handelsblatt Wirtschafts- und Finanzzeitung, 22 Mar2006, (58), 17 (in German)

JGC to develop DME reformer systemfor fuel-cell vehicle

JGC and Osaka Gas are expected toconclude their joint development of adimethyl ether reformer for use in fuel-cell vehicles at the end of fiscal 2006.The two companies were contractedby the Japan Oil, Gas and MetalsNational Corp to develop an onboard-vehicle type, 30-kW low-temperaturesteam reformer system. JGC

MAY 2006 3

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