Imperial Chemical Industries (ICI)

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     In addition, the following information which appears in the Company’s Annual Report and Accounts 2004 contained in its report on Form 6-K dated March 16, 2005 is incorporated herein by reference: the information set forth under the heading “Highlights – ICI Group”, which appears on page 4 thereof; the information set forth under the headings “Group Strategy – History”, “Group Strategy – Balance of activities” and “Group Strategy – Strategy – ICI strategic matrix”, which appears on pages 6 and 7 thereof; the information set forth under the heading “Operating and financial review – Capital expenditure”, including the table entitled “Group expenditure on tangible fixed assets”, which appears on page 29 thereof; and the information set forth under the headings “Shareholder information – Incorporation of the Company” and “Shareholder information – Registered Office”, which appears on page 128 thereof.

B.   Business overview.

     The information set forth in the tables entitled “Classes of business” and “Geographical areas” under the heading “Notes relating to the accounts – Note 4 – Segment information”, which appears on pages 68 and 69 of Item 18 “Financial Statements” of this Annual Report on Form 20-F, is incorporated herein by reference.

     In addition, the following information which appears in the Company’s Annual Report and Accounts 2004 contained in its report on Form 6-K dated March 16, 2005 is incorporated herein by reference: the information set forth under the headings “Description of business – National Starch”, “Description of business – Quest”, “Description of business – Uniqema”, “Description of business – ICI Paints” and “Description of business – Regional and Industrial”, which appears on pages 9 to 19 thereof; and the information under the headings “Operating and financial review – Sources and availability of raw materials”, “Operating and financial review – Intellectual property” and “Operating and financial review – Regulation, safety, health and the environment”, which appears on pages 29 to 31 thereof.

Markets and distribution
ICI sells its products through an extensive network of subsidiaries, associates and distributors.

Specialty products manufactured by National Starch, Quest and Uniqema are sold mainly by direct sales forces, alliances and distributors. Customers are primarily other manufacturers, in a range of markets from consumer-oriented manufacturers of branded goods in the food, perfume and personal-care sectors to those involved in surfactants, lubricants, papermaking and chemicals.

Paints are sold through a range of distribution channels. Branded architectural paints are sold through a combination of both independent retailers and stores and the Group’s own retail concerns, particularly in North America. Can coatings are supplied directly to beverage and food manufacturers in Europe, the Americas and Asia.

The Group’s Regional and Industrial businesses sell into a wide range of industries including engineering, textiles, pharmaceuticals, aerospace, electronics and the extractive industries. These products are either marketed directly or through independent merchants, wholesalers and distributors who resell to small users. Commodity products are sold through a direct sales force or through distributors primarily to other operators in the chemical industry.

Seasonality
Due to the diversity of their product portfolios and broad international coverage, seasonality in the National Starch, Quest and Uniqema businesses is not significant. Paints, however, is affected, with higher sales of products used on the exterior of buildings normally during better weather conditions. With the geographic profile of Paints, this results in higher activity levels in the second and third quarters of the year.

Competition
Owing to the breadth and variety of the products and end markets served, the Group encounters a wide range of competitors, from multinational companies to many small local and independent firms. National Starch does not compete with any one competitor in all of its markets. However, multinational competitors in specific markets include H B Fuller, Rohm & Haas, Henkel, Air Products and A E Staley. Similarly, Uniqema does not compete with any one competitor in all of its markets, but competitors in particular markets include BASF, Cognis, Croda, Degussa and Rhodia.

Quest is a leader in the development application and production of fragrances, flavours and food ingredients. Quest’s main competitors are multinational flavour and fragrance houses, including International Flavors & Fragrances and Givaudan.

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