Dipac

Not satisfied with the Solvency Relief information as initially supplied by INVISTA, the Kingston site KINWU union had their lawyer pursue a number of questions/clarifications with the company.

Based on information as reported by KINWU, it appears their key crucial issue was that the (INVISTA B.V.) guarantee was not in a form that gave the union confidence, especially in the event of insolvency/bankruptcy should that fate befall INVISTA(Canada).

The DIPAC Board of Directors reviewed the above information as well as our own latest update, which included further elaboration from INVISTA. We continue to believe that the earlier DIPAC recommendation to 'not object' is still appropriate. Opinions vary widely regarding the degree of certainty provided by the 'guarantee'. We have concluded it is unlikely to be further upgraded by INVISTA and therefore we have decided to accept it as communicated.

In the final analysis, the decision to 'take no action' and thus support INVISTA's proposal or to submit a Notice of Objection is still a personal and individual choice. Under applicable regulations, KINWU is authorized to file a Notice of Objection on behalf of the 800 or so active unionized employees, however all other (non-union) employees and all pensioners are required to decide individually.

This update is provided to aid you in arriving at your personal decision and you are reminded that should you elect to file a Notice of Objection, it must be received prior to 19^th November 2010.