WILMINGTON, DELAWARE and JOHANNESBURG, SOUTH AFRICA, Jan. 19, 2006 - - The Pulp and Paper Division of Hercules Incorporated (NYSE: HPC) and South African Paper Chemicals Pty Ltd, a business of Chemical Services Pty Ltd. have announced that South African Paper Chemicals will take over all sales and marketing activities for Hercules Pulp and Paper Division products and technologies in South Africa effective January 1, 2006.  T&C Chemicals, who previously represented PPD’s products in South Africa, will continue to manufacture products for Hercules.

SAPC will be the exclusive supplier of PPD’s internal sizing, wet and dry strength, tissue and towel, pulp mill and process chemical portfolios.  Excluded from this agreement are retention, drainage and clarification products and surface sizing product lines, which are already subject to exclusive agreements between SAPC and other principals.

“This agreement heralds a significant strengthening of Hercules’ ability to deliver leading edge products and services to the South African market.  We believe that PPD’s global presence and world-class products and technologies, combined with SAPC’s excellent local market presence, credibility and relationships, will enable us to deliver significantly increased value to our customers,” stated Charles Robinson, Director, Global New Business Development, Hercules.

Mark Dytor, Chairman of South African Paper Chemicals shared, “We are excited about our new relationship with Hercules and excited about the benefits the expanded product range will enable us to offer our customers.  Hercules is known as a leading innovator in chemical solutions for pulp and paper making and has an exceptional record for delivering value to its customers.”

T&C’s Managing Director, Paul Voorhout believes the deal represents outstanding value for the South African pulp and paper industry. “We are pleased to be entering this new phase in our relationship with Hercules, which allows us to focus on manufacturing activities and ensuring SAPC’s customers receive the highest quality products, on time, every time.”

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