INEOS and Sinopec Sign Memorandum of Understanding on a Joint Venture to Build a 400,000 Tonne Phenol plant in Nanjing, China

LONDON, January 27, 2011 - INEOS Phenol and Sinopec Yangzi Petrochemical Company have signed a
Memorandum of Understanding (MOU), agreeing the framework for the design and
future operation of a phenol/acetone joint venture at the Nanjing Chemical
Industrial park in Jiangsu Province, China.

The agreement is an important step as the two companies begin
detailed discussions on the formation of the Joint Venture in Nanjing. The
Memorandum was preceded by a Letter of Intent signed in December 2009 and
follows a detailed evaluation of the investment.

The partnership will benefit from Sinopec's local feedstock
advantages and INEOS' proprietary phenol technology.

The annual capacity of the new facility will be 400,000 tonnes
of phenol and 250,000 tonnes of acetone making it the largest plant of its
kind in China. The facility will also include 550,000 tonnes/year of cumene
capacity. The location of the plant in Nanjing places it at the centre of
China's strongest market for both phenol and acetone. It is currently
expected that the project will be completed by the end of 2013.

Tony Traynor, CEO of INEOS Phenol states, "Signing the MOU is
an essential step as we work towards establishing a Joint Venture and marks a
major milestone in our relationship with Sinopec YPC. This joint venture will
allow INEOS to bring its proprietary phenol technology to China and teaming
with a strong, local partner like Sinopec YPC will bring considerable value
to our business and our customers."

INEOS Phenol is the world's leading manufacturer of phenol and
acetone with sites in Germany, Belgium, and USA (Alabama). China is the
world's fastest growing market for phenol and acetone and Sinopec is China's
leading producer of phenol and acetone with three production sites in
Shanghai, Beijing, and Tianjin.

www.ineos.com

Note to editors.

INEOS Phenol, (www.ineosphenol.com) currently has a
nameplate capacity of 1870 ktpa of phenol and 1150 ktpa of acetone a year. It
has a turnover of around EUR2.7 billion and employs 600 people worldwide. The
company is the world's largest producer of Phenol and Acetone and the only
manufacturer with production facilities both in Europe and America.

It is expected that the production from a JV facility with Sinopec YPC
will serve the growing market for phenol and acetone in China and will free
capacity at the company's European and US plants to meet growth in these
regions. The completion of this new plant in China will increase INEOS
Phenol's overall annual capacity to over 2.3 million tonnes of phenol and 1.4
million tonnes of acetone.

Phenol and Acetone are used in the production of polycarbonate, plastics,
phenolic resins, synthetic fibres (such as nylon) and solvents. These
products are used in a diverse range of endmarkets, including the automotive,
construction, electronics and fibre industries.

INEOS (www.ineos.com) is one of the world's leading chemicals
companies; a global manufacturer of petrochemicals, specialty chemicals and
oil products. Comprising 15 businesses, with a production network spanning 60
manufacturing facilities in 13 countries, the company produces more than 40
million tonnes of petrochemicals, 20 million tons per annum of crude oil
refined products (fuels). INEOS employs 15,000 people and has sales of around
$40bn.

    For further information contact:

    Richard Longden - INEOS - Tel: +44(0)7710-371998
    Mark Killick - Media Zoo - +44(0)20-7384 6980 / +44(0)7836-634449
    Andrew McLachlan - Media Zoo - +44(0)20-7384 6980 / +44(0)7931-377162
    Sion Taylor - Media Zoo - +44(0)20-7384-6980 / +44(0)7768-372714
    Helen Morris - Media Zoo - +44(0)20-7384-6980 / +44(0)7917-646585

For further information contact: Richard Longden - INEOS - Tel: +44(0)7710-371998; Mark Killick - Media Zoo - +44(0)20-7384 6980 / +44(0)7836-634449; Andrew McLachlan - Media Zoo - +44(0)20-7384 6980 / +44(0)7931-377162; Sion Taylor - Media Zoo - +44(0)20-7384-6980 / +44(0)7768-372714; Helen Morris - Media Zoo - +44(0)20-7384-6980 / +44(0)7917-646585