OFFICE: NPX: Nuplex Appoints New CEO

4 Feb 2010 9:12 am

NPX 04/02/2010 OFFICE

REL: 0912 HRS Nuplex Industries Limited

OFFICE: NPX: Nuplex Appoints New CEO

NZX/ASX release 4 Feb 2010

Nuplex Industries appoints new CEO

The Chairman of Nuplex Industries Limited, Mr Rob Aitken, announced today that the board has appointed Dr Emery Severin as the next Chief Executive Officer of the company. Dr Severin will commence with Nuplex on 12 April 2010 and take on the role of Managing Director and Chief Executive from 23 April 2010. He will be based at the Nuplex corporate offices in Botany, Sydney Australia.

Mr Aitken said that Dr Severin would replace long serving CEO Mr John Hirst, who will retire at the end of June after 43 years with Nuplex, including 9 years as Chief Executive.

Mr Aitken said that Dr Severin has extensive experience in the industrials sector and has demonstrated the ability to build profitable international businesses through organic and acquisition growth.

Dr Severin, who is Australian, has been President of Boral Industries, Inc based in Atlanta USA since 2004 and prior to that was Executive General Manager of Boral's Australian construction materials business. Dr Severin, a Rhodes Scholar, has a PhD in Physical Chemistry from Oxford University.

"After a comprehensive international evaluation of internal and external candidates, the board is delighted to appoint Emery to the position of CEO as we feel his demonstrated strategic and commercial expertise, acquisition experience and proven leadership in competitive environments are ideally suited to Nuplex's future development," Mr Aitken said.

"Nuplex has grown into a leading global manufacturer and distributor of synthetic resins through a series of acquisitions, technological leadership and customer focus.

"We are delighted Emery has agreed to lead the company into our next phase of growth.

"I would also like to thank, on behalf of the board and the entire Nuplex Industries team, the outgoing MD and CEO, Mr John Hirst for his enormous contribution to the growth of Nuplex during his 43 years of service. Mr Hirst led the company through a rapid global growth phase, including the acquisition of the Akzo Nobel coating resins business. Mr Hirst will become a consultant to the board from his retirement through to 30 June 2011 to assist in an orderly transition in leadership."

Dr Severin said that he was pleased to have been appointed to the position of Chief Executive Officer of Nuplex.

"I am excited about the prospects of leading Nuplex into this next phase of growth and development of the company.

"I look forward to working with the board and the Nuplex team to strengthen Nuplex's position and continue to deliver strong returns for the company's shareholders."

A summary of the key terms of Dr Severin's employment agreement with Nuplex is attached and further biographical details for Dr Severin are set out below.

DR SEVERIN - BIOGRAPHICAL DETAILS

Emery Severin is 53 years old. He gained entry to Duntroon Royal Military College for officer cadet training in 1974 and then spent most of his next 6-7 years studying. He initially completed a Bachelor of Science honours degree in Chemistry and Physics at the University of New South Wales and was awarded a University Medal for Chemistry.

Following selection as a Rhodes Scholar, Emery spent 3 years at Oxford University completing a Doctorate of Philosophy in Physical Chemistry in 1981. He then spent several years in regimental duties in the military before being appointed Aide-de-Camp to the Australian Governor-General in 1985.

In 1986, Emery joined BHP Steel in a planning and business development role and then moved through a range of line management positions at the Newcastle steelworks, as Regional Operations Manager based in Singapore and as Manager of BHP's packaging businesses at the Port Kembla steelworks.

In 1996, Emery joined Boral Limited as General Manager, NSW Construction Materials Group, and in 1998 became National General Manager, Blue Circle Southern Cement Ltd. In October 1999, he was appointed Executive General Manager for the Australian Construction Materials Group which employed more than 3,700 people and had revenues of c.A$1.5 billion from its quarry, concrete, asphalt, transport and contracting operations throughout Australia.

In 2004, Emery was appointed to the position of President, Boral Industries, Inc based in Atlanta, USA. During his first 2-3 years in this position, he was focused on building the USA operations through a combination of organic and acquisitive growth initiatives. The focus has been very different since 2007 and he has led Boral's response to dramatically tougher economic and market conditions while still maintaining a strong focus on innovation and product development.

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Media inquiries: Rob Aitken Chairman +61 438205169

Nuplex Industries Limited is one of the world's top ten manufacturers of resins for coatings and composites, and one of Australasia's top four distributors of specialty products for the construction, chemical, plastic and life sciences industries. It has manufacturing operations in ten countries across Australasia, Europe, North America and Asia, and more than 50 per cent of revenue comes from outside Australasia. Nuplex is listed on the Australian and New Zealand exchanges.

Nuplex Industries Limited

Summary of the Key Terms of the Employment Agreement appointing Emery Severin as Chief Executive Officer

Commencement Date: 12 April 2010

Term: Ongoing (i.e. no fixed term)

Remuneration: Dr Severin's remuneration will consist of salary and other benefits referred to below as 'Total Employment Cost', plus the short term and long term incentives referred to below.

Total Employment Cost (TEC): Initial TEC will be A$1.0 million per annum with an annual review. TEC includes salary and superannuation and may also include non-cash components such as a company motor vehicle and costs associated with that vehicle.

Incentives: Under his Employment Agreement, Dr Severin is entitled to incentive awards as set out below calculated by reference to his TEC.

1. Short Term Incentive (STI)

The amount of the STI payment in any year will be determined by the Board by assessment of Dr Severin's performance against financial and non-financial targets set by the Board at the start of each financial year. For performance outcomes at target level, Dr Severin would receive 50% of his TEC and for performance outcomes at stretch level, he would receive a maximum of 100% of his TEC.

For the period from the Commencement Date to 30 June 2010, the targets will be set by the Board shortly after the Commencement Date and the incentive amount will be prorated for the reduced period.

2. Long Term Incentive (LTI)

The LTI plan has been designed to drive behaviour that grows business value over the longer term and to complement the shorter term focus of the STI plan.

Dr Severin will be entitled to an annual LTI grant up to an amount of 90% of TEC subject to achievement of performance hurdles. The initial grant will be in the form of A$900,000 cash prorated for the period from Commencement Date until 30 June 2010. Thereafter an annual grant of cash or share acquisition rights with an aggregate fair market value equivalent to 90% of TEC will be made. Shareholders will be asked to approve any grant of share acquisition rights at the 2010 Annual General Meeting, and the terms of the grant will be set out in the Notice of Meeting. Subject to receiving shareholder approval, the 2010 grant will be made in November 2010.

The number of share acquisition rights to be awarded will be determined at the time of grant by dividing the amount of the grant (being 90% of his TEC at the start of the financial year to which the LTI award relates) by the fair market value per share acquisition right.

Vesting of the initial LTI grant will be subject to performance hurdles based on Earnings per Share (EPS) and Nuplex's Total Shareholder Return (TSR) performance relative to companies within the NZX50 Index over a measurement period of three to four years. TSR is defined as share price growth and dividends paid and reinvested on the ex-dividend date (adjusted for rights, bonus issues and any capital reconstructions) measured over the measurement period. In respect of the LTI grant, 50% of the grant will be based on EPS and 50% on TSR.

Performance hurdles for LTI Grants:

a) EPS The EPS hurdle is triggered by a percentage growth in Nuplex's compound annual growth rate in earnings per share over the measurement period. Target growth in EPS is 10% per annum from a starting base of EPS for the year ended 30 June 2009 of NZ19.18 cents. Achievement levels at different levels of performance are set out in the table below.

Threshold Performance Target Performance Maximum Performance Entitlement Triggered on achievement of 95% of Target EPS

(0% of LTI) Payout 60% of Maximum EPS grant on achievement of Target EPS (30% of LTI) Payout 100% of Maximum EPS grant on achievement of 115% of Target (50% of LTI) Target EPS after 3 Yrs 25.52 cents Target EPS after 4 Yrs 28.08 cents

b) TSR The TSR hurdle is triggered when the growth performance in TSR exceeds the TSR of the NZX50 Index Peer Group at the 40th percentile and the movement in TSR over the measurement period is positive. Achievement levels at different levels of performance are set out below.

Threshold Performance Target Performance Maximum Performance Entitlement triggered when Nuplex TSR exceeds the TSR of the Peer Group at the 40th percentile

Payout 0% of the TSR grant

(0% of LTI) Entitlement triggered when Nuplex TSR exceeds the TSR of the Peer Group at the 50th percentile Payout 60% of Maximum TSR grant (30% of LTI) Entitlement triggered when Nuplex TSR exceeds the TSR of the Peer Group at the 75th percentile Payout 100% of Maximum TSR grant (50% of LTI) : Dr Severin's participation in the STI and LTI Plans is subject to the rules of each Plan.

Termination Provisions:

The agreement entered in to with Dr Severin provides for a maximum termination payment of 12 months' remuneration. The agreement may be terminated in the circumstances described below.

1. Resignation by Dr Severin Dr Severin may terminate his employment at any time by giving Nuplex 6 months' notice in writing. In this circumstance, Dr Severin will not be entitled to any STI in respect of the notice period or the year of termination (i.e. the STI is not pro rated). Any LTI that has been granted but which remains unvested will lapse unless the Board determines otherwise. Nuplex may elect to make a payment in lieu of the notice period

2. Termination without cause Nuplex may terminate Dr Severin's employment at any time by giving Dr Severin 12 months' written notice (or 6 months' written notice in the case of incapacitating illness). Nuplex may elect to make a payment in lieu of the notice period. In the event of Dr Severin's death a payment of 12 months salary will be made. Any STI payment will be prorated for the period up until the end of the notice period. Any LTI that has been granted but which remains unvested will continue beyond termination and will vest in due course if the performance hurdles are achieved, unless the Board determines otherwise.

3. Termination for cause Nuplex may terminate Dr Severin's contract with immediate effect for cause (for example, for serious misconduct or breach of duty). In this case, Dr Severin will not be entitled to any STI in respect of the notice period or the year of termination (i.e. the STI is not pro rated). Any LTI that has been granted but which remains unvested will lapse unless the Board determines otherwise.

Restraint:

Dr Severin will be restrained from taking a position in a competitive business for a period of 12 months following the cessation of his employment. He will also be restrained from soliciting employment of employees of Nuplex for a period of 12 months after termination. End CA:00190853 For:NPX Type:OFFICE Time:2010-02-04:09:12:55

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