October 27, 2014
Kurita Water Industries Ltd.

Kurita to acquire German-based Water Solutions, Paper Solutions and Alumina Compounds businessesof BK Giulini
Kurita Water Industries Ltd. ("we" or "Kurita") announced today that Kurita, BK Giulini GmbH and its affiliates("BKG") and its ultimate parent company, Israel Chemicals Limited ("ICL") have entered into an agreement where Kurita
will acquire, through its subsidiary, the Water Solutions, Paper Solutions and Alumina Compounds businesses of BKG (the"Business") (the "Transaction"). The Transaction is expected to be completed by the end of 2014, subject to applicable antitrust clearance and customary closing conditions.
1.

Purpose of the Transaction
The Transaction will enable Kurita to strengthen its overseas business platform through combining theBusiness's broad customer base in Europe and other regions with Kurita's existing customer base, which is mainly in Japanand the Asia region. In addition, Kurita sees the technologies and products of the Business as highly complementary withthose of Kurita, leading up to the development of more diverse product offering for its customers.
Kurita and the management of the Business will cooperate to integrate their businesses and technologies torealize expected synergies in the near future. Kurita believes that this effort will benefit customers as well as employees ofKurita and the Business and will also contribute to its mid to long-term growth.
2. Overview of the Business(1)

Target business

Manufacturing, developing and marketing water treatment chemicals, paper
chemicals and alumina compounds【Production site】
Germany: Ludwigshafen
China: Jiangyin and Anshan(2)

Location

Turkey: Bandirma【R&D】
Germany: Düsseldorf【Sales office】
Germany, France, Greece, Italy, Spain, Poland, Sweden, China, Turkey(3)

Employees

Approximately 464
Sales: Approximately EUR177 million (Fiscal year ended Dec 2013)(note 1) The data is provided by BKG and not audited(4)

Financial result(note 2) Ordinary income and asset/liability amount cannot be disclosed due to the difficulty to assess
cost/profit allocated to the Business, which is part of BKG's reporting unit.

(5)

Purchase price andsource of funds

EUR250 million (approximately JPY34.2 billion based on EUR/JPY rate of136.65), subject to working capital and net debt adjustments; paid with cash onhand.

3. Overview of BKG(1)Company name

BK Giulini GmbH(2)

Headquarter

Giulinistraße 2, 67065 Ludwigshafen/Rhein, Germany(3)

Title and name ofrepresentative

Eli Glazer, Managing Director
1Manufacturing, developing and marketing water treatment chemicals, paper(4)

Businesschemicals, alumina compounds, intermediates for pharma and cosmetics andgypsum(5)

Paid-in capital

EUR 16 million (as of 31 December 2013）(6)

Date of Foundation

1823

(7)

Net assets

EUR 37 million (as of 31 December 2013）(8)

Total assets

EUR 315 million (as of 31 December 2013）(9)

Major shareholders/Shareholding ratio

Rotem Holding GmbH (94.9％)
Hoyermann Chemie (5.1%)※ ICL is the ultimate parent of BKG
Capitalrelationship
Human(10)Relationshiprelationshipwith Kurita

Businessrelationship
Related party

NoneNoneNone
BKG is not a related party of Kurita. None of directors,
employees, nor affiliates of BKG is a related party of Kurita

4. Overview of ICL(1)Company name

Israel Chemicals Limited(2)

Headquarter

Millennium Tower, 23 Aranha St. Tel Aviv 61070, Israel(3)

Title and name ofrepresentative

Stefan Borgas, President & CEO
Manufacturing, developing and marketing fertilizers and special purpose chemical(4)

Business(5)

Paid-in capital

USD 542 million (as of 31 December 2013）(6)

Date of Foundation

1968

(7)

Net assets

USD 3,678 million (as of 31 December 2013）(8)

Total assets

USD 7,973 million (as of 31 December 2013）

Major shareholders/Israel Corp.(46.18%)

Shareholding ratio

Potash Corp Agricultural Society Ltd (13.85%)(9)products

Capitalrelationship
Human
(10)

NoneNone

Relationshiprelationshipwith Kurita

Business

Kurita procures raw materials from ICL group. The amount isrelationship

immaterial.

Related party

ICL is not a related party of Kurita. None of directors,
employees, nor affiliates of ICL is a related party of Kurita

5. Acquiring entity
Kurita's newly established and wholly owned subsidiary in Germany will acquire the Business.
Overview of acquiring entity(1)

Company name

Kurita Europe APW GmbH (The registration is in process. The current name is
Blitz F14-246 GmbH)2

(2)Headquarter

Industriering 43, 41751 Viersen, Germany(3)Name of Representative

Koichi Iioka

6. Schedule of closing(1)

Board approval

October 22, 2014 (*)(2)

Date of execution

October 27, 2014 (*)(3)

Closing date

The Transaction expects to close by the end of 2014. The closing date may varydepending on progress of merger review and other closing conditions.

(*) After the board resolution on October 22, 2014, we continued discussing details of contracts with BKG and ICL, andreached definitive agreement on October 27, 2014.
7. Accounting treatment
The Transaction will be treated as an acquisition under Japanese Generally Accepted Accounting Principles.
8. Financial impact
Financial impact on Kurita’s consolidated financial statements is still under review and will be disclosed in atimely manner where necessary.
(Reference) Consolidated financial outlook for FY2014 and result for FY2013 (reported as of April 30, 2014)(unit: millions of JPY)
Net sales

Operating income

Ordinary income

Net income

Outlook for FY2014(April

1, 2014 –

185,000

17,00017,80011,000178,137

14,886

16,072

9,352

March 31, 2015)
Result for FY2013(April1, 2013 –March 31, 2014)3