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Fine Chemicals

A New Global Chemicals Leader Emerges

John Nicols, Vice President, Fine Chemicals

May 25, 2004

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Caution Statement

Some of the information presented in the pages of this presentation constitutes forward-looking comments within the meaning of the Private Securities Litigation Reform Act of 1995. Although Albemarle Corporation believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations.

Factors which could cause actual results to differ from expectations include, without limitation, the timing of orders received from customers, the gain or loss of significant customers, competition from other manufacturers, changes in demand for the Company’s products, increases in the cost of the product, changes in the market in general, fluctuations in foreign currencies, and significant changes in new product introduction resulting in an increase in capital project requests and approvals leading to capital spending.

Such statements also include, but are not limited to, statements about the proposed acquisition by Albemarle Corporation of Akzo Nobel’s refinery catalyst business, including financial and operating results, the parties’ plans, beliefs, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may vary materially from those set forth in the forward-looking statements. The following factors, among others, could affect the consummation of the proposed transaction: execution of a definitive sale and purchase agreement, the advice from Akzo Nobel’s Works Council, the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Act and the receipt of other competition law clearances. The following factors, among others, could affect the anticipated results: consummation of the financing on terms favorable to the Company, the ability to integrate successfully the acquired business within the expected timeframes or at all, and ongoing operations of the business. Additional factors that could cause Albemarle’s results to differ materially from those described in the forward-looking statements can be found in Albemarle’s Annual Report on Form 10-K for the year ended December 31, 2003.

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Albemarle History

1887 - Albemarle Paper Manufacturing Company opens with a handful of employees producing Kraft and blotting paper.

1921 - The antiknock properties of tetraethyl lead (TEL) as a gasoline additive are discovered after a lengthy search by a team of General Motors research chemists. TEL is to be the principal product of Ethyl Corporation for more than 40 years.

1942 - Ethyl Gasoline Corporation changes its name to Ethyl Corporation to characterize a broader interest than just gasoline products.

1962 - Albemarle Paper Manufacturing Company borrows $200 million and purchases Ethyl Corporation (Delaware), a corporation 13 times its size, and Ethyl Corporation (Virginia) is formed. Floyd D. Gottwald becomes Chairman of the Board.

1976 - Ethyl leaves paper manufacturing with the sale of Oxford Paper. Ethyl opens a chemical plant in Feluy, Belgium to make aluminum alkyls.

1987 - Ethyl acquires Dow Chemical's bromine chemicals business and its Magnolia, Arkansas, plant.

1994 - Ethyl spins off its chemical businesses to create an independent, publicly traded company named Albemarle Corporation

1996 - Albemarle sells its alpha olefins, polyalphaolefins and synthetic alcohols businesses to Amoco for about $500 million.

1998 - Albemarle energizes M&A effort to grow the company based on longstanding foundation technologies of bromine and organometallic chemistry, supported by exceptional skill in process technology.

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Current Business Segments

Flame Retardants Polyolefin Catalysts Other Polymer Additives

– Net Sales (2003)

– Operating Profit (2003)

$629.9 million

$ 70.3 million

Polymer Chemicals

Pharmaceuticals & Agrichemicals Fine Chemistry Services Bromine, Bromine Derivatives and

Specialty Aluminas

– Net Sales (2003)

– Operating Profit (2003)

$480.4 million

$ 49.0 million

Fine Chemicals

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#1 Producer of bromine-based flame retardants

#1 Producer of mineral flame retardants

#1 Producer of alkyl-based polyolefin catalysts

#1 Producer of metallocene co-catalysts

#1 Producer of ibuprofen

#1 Producer of alkylated anilines

#2 Producer of bromine

PerformanceChemicals

Pharma

FlameRetardants

Ag

Additives

Catalysts

TechnologyRelationships

Innovation

Aluminum Alkyls

BromineProcess

Development

Albemarle Platform

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Key Markets

Diversity – Balance Across Markets Strategic Account Management – Work With

Winners World Market Knowledge – Direct Sales and

Other Effective Channels Portfolio improvements fit focus

46%35%

19%

2003

Markets Served Growth Rate

Construction 15%Carpet /Fabric, Roofing, Insulation, PVC stabilizers

5%

Consumer Electronics 30%Printed Circuit Boards, Electronic Enclosures

8 -10%

Pharma/Ag 20%Analgesics, Active Ingredients, Intermediate Ingredients, Pre-Emergent Herbicides

6 -10%

Auto/Transport 10%Wire & Cable, Polyurethane Body Panels, Polishing compounds, Brake linings

3-5%

Packaging 10%Plastic films, Polymer compounds, Paper and pigments

3-5%

Industrial 5%Water treatment, Oilfield fluids, Polishing compounds, Photo-graphic, Specialty glass (TV)

2-4%

Other 10%

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Balanced, Technology-Based Portfolio:“Top Tier” Performance – 2004 Post-Acquisition

• Bromine Franchise• >$200 million in life

sciences• New product pipeline

approaching 100

With Akzo Refinery Catalysts Acquisition:

• #1 or #2 positions in refinery and metallocene catalysts

• History of innovation• Strong customer relationships• Global scope and reputation

• Bromine integration• #1 or #2 positions in

major flame retardant chemistries

• Additives niches• Global scope and

reputation

Additives – 37%

Catalysts – 37%

Fine Chemicals – 26%

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Fine Chemicals

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Albemarle Fine Chemicals

Product Diversity Strategic Clusters

Br2 & Derivatives

Fine Chem Svcs & Int’s

Pharma Actives (APIs)

Ag Actives

ASA Paper Sizes

Alumina Spec’sOthers

OilfieldAmines

K & Cl2 Derivatives

Zeolites

Biocides/Abzol

Fine Chemistry Services

Industrial Specialties

Bromine Chemicals

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Manage for Cash

Fine Chemicals Strategies

Bromine Chemical

s35% of FC Sales

#1 Bromine Company

In The World

Fine Chemistry Services

40% of FC SalesIndustrial Specialtie

s25% of FC Sales

Deliver Chemistry To Solve Customer Problems -------------------------------------------------------

Widen & Deepen Access Into Key End Markets: Pharma & Ag

-------------------------------------------------------

Drive To Actives: Highest Chemistry Value Add

New Strategy Potentials

Strategic Growth

Goal:

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Fine Chemicals Rotation

Successfully Managing The Rejuvenation Successfully Managing The Rejuvenation Of Our Fine Chemicals PortfolioOf Our Fine Chemicals Portfolio

6

480

10

24

(16)

(35)

49526

Bromine

Atofina Fine Chem

FCS

2003

Ag

Zeolites

2004E

Revenue $MM6

Other

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Profit Growth In Fine Chemicals

Profit Perspective 2003 2004 2005 + Comments

Raw Mats & Energy - - - - Deceleration continues for a cycle?

Regulatory - - MeBr 2005 secure; 2006 special uses or more?

Mature Products Pricing

- - - 2004 peak of current maturity curve

Zeolites - - - - Sales and profit impact comparison goes away

Jordan Startup - 0 Jordan low cost will create favorable ’05+ conditions

Br Chem Pricing + + + Accelerating due to favorable supply / demand

New Products + + + Accelerating due to improved pipeline

Asset Utilization + + + + Continued year-on-year improvements

BOTTOM LINE - - - Stormy 03-04 period is followed by improving conditions across the portfolio.

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World-Class Bromine Position

Albemarle’s production capturing market growth with premier, low cost domestic reserves and augmented by new production on the Dead Sea through joint venture Jordan Bromine Company

100

150

200

250

300

350

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04

MM

Lbs

.

Albemarle Bromine Production

CAGR = 7.5%

Bromine-Industry Usage - 2002USGS/Mining Engineering June 2003

Albemarle holds strong positions in each of the key areas of the world’s bromine-using industries.

FlameRetardants

40%

Oilfield24%

Ag12%

WaterTreatment

7%

Pharma3%

Other14%

Long Time In Motion

Keep Building Momentum

EDB For TEL – Ethyl Beginnings

1980SaytechAcquired

1987Dow Br’sAcquired

1993Thann

Acquired

2000#1 BrFRIn World

1999Ato & Ferro

BrFRs Acquired

2002JBC

Startup

2003AtoFina

BFCAcquired

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#1 Bromine Company

In The World

Pharma Int’s

MeBr

Br F R

Resource ManagedIn Fine Chemicals

MarketManaged

Bromine Specialties

High Volume Bromides

RelatedProducts

World-Class Bromine Position

Goal:

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Business Strategies

• Continue To Build & Drive The World’s Lowest Cost Global Bromine Sourcing Network

• Maximize Value While Ensuring #1 or #2 Share In All Significant Br Consuming Uses

• Lead In Developing New Applications For High Value Br Specialties

• Secure Advantage From Technologies Borrowing Bromides

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2001

3 Pharma Products3 Ag ProductsLeading BFC’s In EU1 cGMP FacilitySeveral New Prod’s In Pipeline

2003

Historic Pharma/Ag/BFC ProductsIncreasing Pressures On IBP / NPXLeading US Custom Mfr3 Research Facilities (2 US, 1 EU)2 cGMP Facilities7 Flexible Multi-Product Sites80+ New Prod’s In Pipeline

Albemarle’s Fine Chemistry ServicesArea Of Major Strategic Change

Products Capabilities Globally Leading

Capabilities

Flexible Plants’ Utilization Up Profit Up $4 MM in ’03 v. ’02

Stepping Up in ’04:Higher Utilizations Outsourcing Pharma New ALB Products

Success w/ Specialty API’s Profit Up $2 MM in ’03 v. ’02

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Fine Chemistry Services ModelFine Chemistry Services Model

Fine Chemistry Services & Intermediates

Industrial SpecialtiesPersonal CarePhoto Chems

Flavors / FragrancesEtc.

15%

ALB Actives (APIs)

Ibuprofen, Naproxen

ALB Actives

Methyl Bromide

Customer Needs & Opportunities

45%40%

AgALB Intermediates

Custom MfrContract Research

PharmaALB Intermediates

Custom MfrContract Research

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Fine Chemistry Services SuccessesFine Chemistry Services Successes

0

20

40

60

80

100

120

J2003 F M A M J J A S O N D J2004

Inquiries for Custom Production Quotes

Pre-Clinical Phase I Phase II Phase IIIPatent

Protected Generic

Development Momentum 85 products in pipeline

27 1315 13 13 4

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Fine Chemistry Services & Intermediates

Industrial Specialties

Further Downstream in Market to Higher Chemistry Value

Customer Needs & Opportunities

AgALB Intermediates

Custom MfrContract Research

PharmaALB Intermediates

Custom MfrContract Research

Fine Chemistry Services: Build Synergistically

Gain More Market Access

Further Downstream in Market to Higher Chemistry Value

Other Market Servicing

Capability

Other Market Servicing

Capability

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Manage for Cash

Fine Chemicals Strategies

Bromine Chemical

s35% of FC Sales

#1 Bromine Company

In The World

Fine Chemistry Services

40% of FC SalesIndustrial Specialtie

s25% of FC Sales

Deliver Chemistry To Solve Customer Problems -------------------------------------------------------

Widen & Deepen Access Into Key End Markets: Pharma & Ag

-------------------------------------------------------

Drive To Actives: Highest Chemistry Value Add

New Strategy Potentials

Strategic Growth

Goal:

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Fine Chemicals: Conclusion Strong Accountable Team

Mitigating Near-Term Exceptional Situations Successfully Managing Portfolio Rejuvenation

Strong Positions Driving Our Strategic Successes Global Bromine Leadership – Tightening Supply Environment Broad Fine Chemistry Service Business Capabilities:

Developed, Entrenched Service Model Satisfying Our Targeted Client Base Leverages Corporate Chemistry / Process Development Foundation Strength Drives Us Into Attractive Pharma / Ag Markets For Chemistry / Innovation One Of Relatively Few Worldwide With Pharma / Ag Revenues > $200 MM

Sound Strategies Drive Improved Returns & Sustain Growth Disciplined Corporate Cost Focus – Improving Return on Assets Targeting Bolt-On Acquisitions, But Not Essential To Long Term

Fine Chemicals Success

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Fine Chemicals

A New Global Chemicals Leader Emerges

John Nicols, Vice President, Fine Chemicals

May 25, 2004