Deloitte & Touche LLP     Deloitte & Touche LLP
Notice of the National Settlement of Vitamins Class Actions
This notice may affect your rights. Please read carefully.

To settlement class members, who are: All persons in Canada who purchased any of the following vitamins ("Vitamins") or products containing the Vitamins, or products derived from animals that consumed the Vitamins ("Vitamin Products") in Canada during the relevant purchase periods:

Vitamin Purchase Period Vitamin Purchase Period
A 01/01/90 - 28/02/99 B12 01/01/90 - 31/12/97
B1 (thiamine) 01/01/91 - 31/12/94 beta carotene 01/10/91 - 31/12/98
B2 (riboflavin) 01/07/91 - 31/10/95 C 01/01/91 - 31/12/95
B3 (niacin and niacinamide) 01/01/92 - 31/03/98 canthaxanthin 01/01/92 - 31/12/97
B4 (choline chloride) 01/01/88 - 31/12/98 E 01/01/90 - 28/02/99
B5 (calpan) 01/01/91 - 31/12/98 H (biotin) 01/10/91 - 30/09/95
B6 (pyridoxine) 01/01/91 - 30/09/94 premix 01/01/91 - 31/12/97
B8 (biotin) 01/10/91 – 30/09/95 methionine 01/01/86 - 31/12/98
B9 (folic acid) 01/01/91 - 31/12/94    

CERTIFICATION AND THE SETTLEMENT APPROVAL ORDERS

Class action lawsuits were commenced in Ontario, British Columbia and Quebec against Akzo, Aventis, BASF, Bioproducts, Chinook, Daiichi, Degussa, DuCoa, Eisai, Lonza, Merck, Mitsui, Nepera, Nippon, Novus, Reilly, Rhône-Poulenc, Roche, Roussel, Sumitomo, Takeda, Tanabe and UCB and some of their subsidiary and/or affiliated companies and/or officers and directors ("defendants") alleging that they had conspired to fix prices and markets for Vitamins in Canada.

National Vitamins settlements have been reached with most of the defendants in most of the actions. The settling defendants do not admit any wrongdoing or liability on their part. The settlements are a compromise of disputed claims.

The courts in Ontario, British Columbia and Quebec have certified the actions as class proceedings and approved the national Vitamins settlements against most of the defendants in most of the actions. Complete information on the settlements is found at www.vitaminsclassaction.com.

The class action lawsuits will continue to be prosecuted against those defendants who did not participate in the settlements.

This notice is a summary only. If you believe you are a settlement class member, you may review and/or obtain copies of the judgments and the settlement agreements at the website www.vitaminsclassaction.com or by contacting the Administrator toll free at 1-866-669-6615. Questions concerning the settlements may be directed to the Administrator by telephone or email: vitamins@deloitte.ca.

THE SETTLEMENT

The settling defendants will pay the sum of approximately $140 million less settlement credits in full and final settlement of all claims against them including interest and costs. The settlement monies will be distributed in accordance with the terms of the settlement agreements.

Deloitte & Touche LLP has been appointed by the courts as Administrator of the settlements and will oversee the distribution of the settlement monies. The courts will supervise the administration and operation of the distribution of the settlement monies.


The settlement agreements provide for the following types of purchasers:

· Distributors: persons in Canada who purchased any of the Vitamins in Canada during the relevant purchase periods directly from a defendant and only resold all Vitamins without processing them or including them in any other product.

· Direct Purchasers: persons in Canada who purchased any of the Vitamins in Canada during the relevant purchase periods directly from a defendant or from a Distributor.

· Intermediate Purchasers: persons in Canada other than Direct Purchasers, Distributors or Consumers who purchased any of the Vitamins or Vitamin Products in Canada during the relevant purchase periods.

· Consumers: natural persons in Canada who purchased for personal consumption or use any of the Vitamins or Vitamin Products in Canada during the relevant purchase periods.

The settlement monies will be divided into separate funds for distribution for the direct or indirect benefit of the different types of purchasers as follows:

Direct Purchasers and Distributors of Vitamins (other than Methionine)

About $50.3 million will be allocated to the Direct Purchaser Fund after settlement credits. Settlement class members who are Direct Purchasers and Distributors of Vitamins (other than methionine) may be eligible to receive a direct distribution of settlement monies.

· Direct Purchasers who purchased any of the Vitamins (other than methionine or premix) in Canada directly from a defendant during the relevant purchase periods may receive up to 12% of the net purchase price. Direct Purchasers who purchased premix in Canada directly from a defendant during the relevant purchase period may receive up to 4.2% of the net purchase price.

· Direct Purchasers who purchased any of the Vitamins (other than methionine or premix) in Canada directly from a Distributor during the relevant purchase periods may receive up to 10% of the net purchase price. Direct Purchasers who purchased premix in Canada directly from a Distributor during the relevant purchase period may receive up to 3.5% of the net purchase price.

· Distributors who purchased any of the Vitamins (other than methionine or premix) in Canada directly from a defendant during the relevant purchase periods may receive up to 1% of the net purchase price. Distributors who purchased premix in Canada directly from a defendant during the relevant purchase period may receive up to .35% of the net purchase price.

The % of the net purchase price of Vitamins (other than methionine) that Direct Purchasers and Distributors will actually receive will depend on how many Direct Purchasers and Distributors apply for and are determined to be eligible for compensation. The estimated %’s are not intended to be and should not be interpreted as guarantees.

To apply for compensation, Direct Purchasers and Distributors of Vitamins (other than methionine) must register with the Administrator by 5:00 p.m. eastern on November 5, 2005. The procedures for Direct Purchasers and Distributors of Vitamins (other than methionine) to apply and process claims are described on the website: www.vitaminsclassaction.com.

Direct Purchasers and Distributors of Methionine

About $6.2 million will be allocated to the Methionine Fund. Settlement class members who are Direct Purchasers and Distributors of methionine may be eligible to receive a direct distribution of settlement monies however, the distribution will not be made at this time. Aventis is the only defendant in the methionine class actions participating in the settlement. Degussa, Novus, Nippon and Mitsui are not. The calculation and timing of the methionine distribution will be determined by further order of the courts. An explanation concerning the methionine settlement and the continued prosecution of the methionine class actions is provided on the website: www.vitaminsclassaction.com.

Intermediate Purchasers and Consumers

Recognizing the difficulty of determining the actual damage suffered by any given Intermediate Purchaser or Consumer, and recognizing the related difficulties and costs associated with a direct distribution to Intermediate Purchasers and Consumers, no direct distribution of settlement monies will be made to them.

· About $11.4 million will be allocated to the Intermediate Purchaser Fund to be distributed to designated industry organizations for the indirect benefit of Intermediate Purchasers.

· About $11.4 million will be allocated to the Consumer Fund to be distributed to designated community organizations for activities related to Vitamin Products such as food and nutritional research or education and food programs or consumer services or consumer protection activities for the indirect benefit of Consumers.

The Intermediate Purchaser Fund and Consumer Fund monies will be allocated either to national organizations or to organizations in each province or region according to population. The industry and consumer organizations who may be eligible to receive a distribution are listed at the website http://www.vitaminsclassaction.com.

CLASS COUNSEL FEES AND ADMINISTRATION EXPENSES

The class counsel fees and the costs of the administration and distribution of the settlement funds as approved by the courts will be paid from the $140 million and will not exceed $18.075 million.

RELEASE OF CLAIMS AND EFFECT ON OTHER PROCEEDINGS

A settlement class member who does not opt out of the class proceedings will not be able to bring or maintain any other claim or legal proceeding in connection with the purchase of Vitamins or Vitamin Products against the settling defendants. Any proceeding that a settlement class member who does not opt out has or may commence will be or be deemed to be dismissed.

OPTING OUT

Any settlement class member who does not wish to participate in the Settlement Agreement must opt out of the settlement by sending a written and signed election to the Administrator:

Deloitte & Touche LLP
79 Wellington St. W.
P.O. Box 29, TD Centre
Toronto, ON MK5 1B9
Attn: Vitamins Class Action—Gabriela Arruda
Telephone: 1-866-669-6615
Fax: 1-866-298-1026

A settlement class member who elects to opt out must opt out in respect of all Vitamins purchases in all of the class actions.

The written election must state the person’s full name, current address and telephone number and that the person opts out of the settlement. It must be signed by the person opting out or an authorized representative of the person.

In order for a Direct Purchaser or Distributor to validly opt out, the written election must also provide its name and contact information and the name of the vendor(s), purchase price and identity of all Vitamins that it purchased during the purchase periods. Full details of this opt out requirement are at www.vitaminsclassaction.com

To be effective the written election to opt out must be received by the Administrator by 5:00 p.m. eastern on August 5, 2005 .

A settlement class member who opts out will not be eligible for any of the benefits of the Settlement Agreement.

Do not opt out if you wish to share in the benefits of the settlements.

TERMINATION OF SETTLEMENTS

At the election of the settling defendants, the settlements and the approvals of the courts will be null and void and of no force and effect if Direct Purchasers and Distributors with purchases of Vitamins valued by the Administrator at more than an agreed upon amount opt out of the class actions.

INTERPRETATION

This notice is a summary of some of the terms of the settlement agreements and the judgments. If there is a conflict between the provisions of this notice and the terms of the settlement agreements and judgments, the settlement agreements and judgments shall prevail.

This notice is approved by the Superior Court of Justice for Ontario, the Supreme Court of British Columbia and the Superior Court of Quebec.

Any questions about the substantive matters in this notice should not be directed to the courts as their administrative structures are not designed to address this type of inquiry.

     

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