HEALTHCARE CRODA INTERNATIONAL PLC Keith Layden - Managing Director Andy Bramley - Manufacturing Director 31 October 2001

AGENDA n IntroductionKL n Products, Applications and PotentialsKL n Opportunities and IssuesKL n TechnologiesARB n SummaryKL

BACKGROUND n Raw material base n Competence n Natural evolution from personal care

RAW MATERIAL BASE n Naturally derived - plant and marine - unique to Croda - unique to Croda n Performance - biologically active - enhance actives - enhance actives n Secure - supplier relationships

COMPETENCE n Separation and purification technologies n Chemical synthesis n Analytical capabilities n Quality systems n Lab, pilot and manufacturing scale facilities

NATURAL EVOLUTION FROM PERSONAL CARE n Personal care market demands: –performance –quality systems –purity

CRODA HEALTHCARE SALES BY MARKET SEGMENT n Pharmaceutical n Nutritional n Veterinary

CRODA HEALTHCARE SALES BY APPLICATION n Topical n Oral n Parenteral

TOP 10 CUSTOMERS Lansinoh Laboratories- pharmaceutical Stafford-Miller Ltd - pharmaceutical Johnson & Johnson - pharmaceutical RP Scherer - nutritional Banner Pharmacaps - nutritional Seven Seas Ltd - nutritional Pilot Therapeutics - nutritional Natural ASA - nutritional Merck Sharpe & Dohme - veterinary Fort Dodge - veterinary

PRODUCTS n Speciality lipids n Speciality surfactants n Super refined oils n Lanolins n Proteins n Speciality esters –ACTIVES, CARRIERS, ADJUVANTS

SPECIALITY LIPIDS n Plant derived –Gamma linoleic acid (GLA) –Stearidonic acid –Nervonic acid n Marine derived –Eicosapentaenoic acid (EPA) –Docosahexaenoic acid (DHA) n Inhibit inflammation n Regulate blood flow n Modulate electrical transmission

SPECIALITY LIPIDS - APPLICATIONS n Asthma n Crohn’s disease n Rheumatoid arthritis n Irritable Bowel Syndrome (IBS) n Hay fever n Hypertriglyceridemia n Hypertension

SPECIALITY LIPIDS - APPLICATIONS 1.PILOT THERAPEUTICS Start-up company out of Wake Forest University, NC based on intellectual property of CEO Ski Chilton n PRODUCT 1 - Asthma treatment –Airozin™ –plant and marine oil blend –launch Q1, 2002 –exclusive supply / technology n Pipeline products –Hypertriglyceridemia –IBS –Hayfever –Arthritis –All plant and lipid based

SPECIALITY LIPIDS - APPLICATIONS 2.TILLOTTS PHARMA AG World leader in treatment of Crohn’s disease and ulcerative colitis - Asacole ™, Colpermin™ n PRODUCT 1 Crohns disease –Epanova ™ –medical food for US market –fish oil concentrate –launch 2003 –exclusive supply / technology n PRODUCT 2 Crohns disease –Purepa ™ –World-wide prescription pharmaceutical –launch 2006 –exclusive supply / technology

PRODUCTS - SPECIALITY SURFACTANTS n Emulsification n Detergency n Wetting n Lubrication n Foaming

SPECIALITY SURFACTANTS - APPLICATIONS PROVENSIS (BTG) n VARISOLVE ™ –Polidocanol –launch 2003 –exclusive supply –Croda process technology –Provensis application technology –Croda free to exploit process technology

HEALTHCARE SPECIALITY SURFACTANTS - APPLICATIONS Before After Before After Female, 28 1 year Varicose Veins 11 treatments Sustained outcome Difficult and expensive to achieve with surgery

PRODUCTS - SUPER REFINED OILS ™ n Proprietary chromatographic technique n Physical purification method that removes impurities n Does not alter the natural oil n Gives clear, essentially odourless products with improved taste and very low oxidation

SUPER REFINED OILS ™ - APPLICATIONS n Carriers for veterinary actives n Total parenteral nutrition n Oral nutritional supplementation

PRODUCTS - LANOLIN n Ultra-high purity n Protective / barrier functions n Close mimic of skin lipids n Rich source of sterols n Anti-inflammatory n Surface active properties

LANOLIN - APPLICATIONS n Wound healing n Carrier for topical treatments n Lanosome technology

OPPORTUNITIES n DEMYELINATING DISEASE MANAGEMENT –nervonic acid –blood-brain barrier penetration –novel patented derivatives n PHOTOAGING AND SKIN DISEASE MANAGEMENT –EPA concentrates –EU project –UV protection n MENTAL HEALTH MANAGEMENT –Schizophrenia, Autism, Depression –plant and marine oils –excellent clinicals

FURTHER OPPORTUNITIES n WOUND MANAGEMENT –ultra-high purity lanolin –excellent clinicals n CHOLESTEROL REDUCTION –rice bran oil –exclusive licence –manufacture / partnerships

ISSUES n Product acceptance in market n Product efficacy n Regulatory compliance n Competition n Capital costs n Raw material availability

Manufacturing Technologies at Croda

CONCENTRATION TECHNIQUES - RELATIVE COSTS Molecular distillation Complexation Biocatalytic technologies Supercritical CO 2 fractionation Supercritical CO 2 chromatography

MOLECULAR DISTILLATION n BENEFITS: –Improved colour –Improved taste & odour –Significant reduction in impurities –Unique design –Croda world leader –55% purity levels

ENZYMATIC ENHANCEMENT n BENEFITS: –Biocatalytic (natural) process –Use of naturally occurring enzyme systems to increase purity levels –Ability to ‘select’ particular fatty acids –60% purity

COMPLEXATION n BENEFITS: –Removal of saturated fatty acids –No chemical modification involved –Enhanced polyunsaturated fatty acid content –70% purity

n BENEFITS: –Environmentally Friendly –Solvent Free –80% purity –No competition SUPER CRITICAL CARBON DIOXIDE - FRACTIONATION

SUPER CRITICAL CARBON DIOXIDE - CHROMATOGRAPHY n BENEFITS: –Environmentally friendly –Solvent free –95%+ purity –No competition –Legislatively compliant

WINTERISATION n BENEFITS: –Physical process –Removes solid material –Clean non-solvent process –Ensures excellent clarity at low temperatures –Especially important for encapsulated products

ALKOXYLATION n Dedicated cGMP facility n Fully validated plant n Fully validated process n £1.9m investment

SUMMARY n Naturally derived unique products n New segment of established market n Numerous opportunities, many relevant disease conditions n Croda now positioned as the dominant player