Dear Customer,

Price Increase Table

As you all know, Taminco is one of the largest suppliers of Methylamines and derivatives and we feel confident to say also the most dedicated. After all, since we became an independent company in October of last year, we are now exclusively focused on our core business, i.e. the production of mono-, di- and tri-methylamine and their respective derivatives. This intensive focus is certainly one of our biggest strengths, as it enables us more then ever to be specialists in what we do, and to offer full commitment to all of you.

Today, the various drastic changes in our business environment (companies for sale, companies closing down, restructurings,…) clearly show that all methylamine producers are under serious pressure. With reference to the indications below, you will understand that Taminco as well, today even more than yesterday, experiences the strain of the changing macroeconomic environment.

In the first instance the rising feedstock prices (methanol, EO, ammonia, energy costs) are having a very strong negative impact on the cost picture of our products. In the current situation and short term future, it is not unreasonable to speak about some overall increases of up to 20 %, having a strong proportionally inverse effect on our margins.

Needless to say that environmental rules and safety regulations become ever more severe, requiring constant efforts from each one of us. Only companies investing significantly in a profound Responsible Care policy will be able to defend and maintain their position in the market. Taminco is certainly managing safety, health and environmental issues as an integral part of its management and inevitably related costs absorb an ever bigger share of the margins as well.

Furthermore, we innovate continuously in order to keep up the operational excellence and the high quality standards. The flexible supply-chain, dedicated containers, drumming on demand, special grades, laboratory support are all part of our high service level. The people behind this are Taminco’s main asset and related to that as well we need to be able to further invest in the future.

Everybody is aware that all of these costs are rising to a considerable extent, and yet the prices for methylamines and derivatives have followed an inverse trend over the last years. This has affected margins very seriously and to such an extent that we are heading towards a situation that is not sustainable in the long term.

In view of this and in order to secure the future supplies, we will have to increase our methylamine & derivative prices, as far as contracts allow, with effect from July 1st 2004. Of course our sales force will remain in close contact with you to further discuss.

We are confident that you are fully aware of the changing environment and the necessity of this price increase for which we appreciate your understanding.

Sincerely yours,

Guy Wouters

Director Customer Relations