MOMENTIVE PERFORMANCE MATERIALS AND ZHEJIANG XIN'AN CHEMICAL FORM JV.(Company overview)

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( BW)(CT-MOMENTIVE-PERFORMANCE) Momentive Performance Materials and Zhejiang Xin'an Chemical form a joint venture

New Company will produce siloxane to meet the growing demands of the China region

SHANGHAI & WILTON, Conn.--(BUSINESS WIRE)--July 31, 2007--Momentive Performance Materials and Zhejiang Xin'an Chemical Industrial Group Co., Ltd. have received government approval to create a manufacturing joint venture to meet the increasing demand for silicon-based products in China. The new company will focus on optimizing global technology, and on combining a wide range of product lines and resources to develop more customized products.

The planned facility will be located in Jiande, Zhejiang province. During its opening year the new company will have a plant capacity of 50,000 metric tons of siloxane, or approximately 100,000 metric tons of MCS products. The total forecasted investment is $97 million. The new company will be owned 51 percent by Xin'an and 49 percent by Momentive. The new plant will be operational in the first half of 2009.

According to Dr. Jonathan D. Rich, president and CEO, Momentive Performance Materials, "This joint venture in China demonstrates the Company's commitment to pursue acquisition opportunities, invest in new high-impact products, develop new market segments and applications, and find new customers in fast-growing economies. China is a strategic business region for Momentive; we will increase our investment continuously according to our plan, and further improve the silicone finishing facilities in the region. Regarding Momentive's new global strategy, Dr. Rich added, "Momentive is respected for its problem solving capabilities with customers; we help them win more business by providing innovative solutions for their applications. In 2007 and for the next several years, we will continue our global business strategy to realign resources to increase revenues from specialty products while still serving our customers with the core products they depend on. We will invest in and serve diverse end-regions such as China, India, Eastern Europe, and Latin ...