Sep 10, 2007

ChemChina Announces Strategic Investment by Blackstone

Beijing/New York, 10th September 2007 – China National Chemical Corporation (“ChemChina”), a leading international diversified chemical company, and The Blackstone Group today announced a strategic partnership to build a global leader in the specialty chemical industry. The Blackstone Group will invest up to US$ 600 million into China National Bluestar (Group) Corporation (“Bluestar”), a wholly-owned subsidiary of ChemChina, for a 20% stake. Antony Leung and Ben Jenkins, a former director of Celanese, will join the board.

Commenting on the deal, Mr. Ren Jianxin, Chairman, ChemChina stated, “We are excited to have Blackstone as a long term partner. Given Blackstone’s extensive and successful experience in the global chemical industry, notably past ownership of Celanese Corp. and Nalco Company, this investment will assist Bluestar in its growth and expansion.

Antony Leung, Blackstone’s Chairman of Greater China, stated, “We believe that continued economic growth will drive long term growth in China’s chemical sector. It is a privilege to invest alongside a superb management team in a leading company in one of China’s key industrial sectors.”

Ben Jenkins, Head of Blackstone Asia Pacific Private Equity, added, “Bluestar’s focus on innovation and technology has made it the leading specialty chemical company in China. We are looking forward to using our global network to accelerate and extend growth of the Company both in China and abroad.”

UBS AG acted as financial advisor to ChemChina, and Merrill Lynch acted as financial advisor to Blackstone on this transaction.

The transaction is subject to final regulatory approvals.

About ChemChina

ChemChina, a large State-owned enterprise, was established in 2004 following the restructuring of certain enterprises directly subordinate to the former Ministry of Chemical Industry. After three years’ development, it has become a leading chemical group in China. ChemChina has 92 production and operation enterprises, and 24 scientific and research and design institutes.

About Bluestar

China National Bluestar (Group) Corporation is a core part of ChemChina’s subsidiary companies. Bluestar was founded twenty three years ago by Mr. Ren Jianxin with a group of seven individuals taking a loan of RMB 10,000 in Lanzhou. Bluestar is a leading manufacturer of new material and specialty chemical products. For detailed information, please visit www.china-bluestar.com

About The Blackstone Group

The Blackstone Group is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service.