CP Kelco's Daily Operations Will Not Be Affected by Hercules' Sale of Its Minority Share Position to Huber

Hercules Incorporated announced an agreement has been signed for the sale of its minority share position in CP Kelco to J.M. Huber Corporation. The companies expect the transaction, subject to regulatory approval, will close during the first quarter of 2004.

"In terms of our day-to-day operations, this announcement and resulting sale of Hercules' minority share position will have virtually no impact on us and will be completely transparent to our customers, suppliers and employees," says Robert B. Toth, CP Kelco's President & CEO. "It is a financial transaction between Hercules and Huber which we believe is a direct result of continued improved performance that makes CP Kelco an attractive investment."

Formed in 2000 by the combination of the Copenhagen Pectin/Food Gums Division of Hercules Incorporated and the Kelco Biopolymers business of Monsanto Company, CP Kelco's principal shareholders are currently Lehman Brothers Merchant Banking Partners II L.P. and Hercules Incorporated (NYSE: HPC). Lehman Brothers will remain the primary and controlling shareholder if and when the transaction is approved.

About CP Kelco:
CP Kelco is a leading global producer of xanthan gum, pectin and carrageenan. The company has more than 2,000 customers in over 100 countries, with facilities in North America, Europe, Asia and Latin America. For more information on the company, please visit www.cpkelco.com

Contact:
Charles Oswald
302-594-6117