ChemChina Announces Strategic Investment by Blackstone

China National Chemical Corporation ("ChemChina"), a leading
international diversified chemical company, and The Blackstone Group
today announced a strategic partnership to build a global leader in
the specialty chemical industry. The Blackstone Group will invest up
to US$ 600 million into China National Bluestar (Group) Corporation
("Bluestar"), a wholly-owned subsidiary of ChemChina, for a 20% stake.
Antony Leung and Ben Jenkins, a former director of Celanese, will join
the board.

Commenting on the deal, Mr. Ren Jianxin, Chairman, ChemChina
stated, "We are excited to have Blackstone as a long term partner.
Given Blackstone's extensive and successful experience in the global
chemical industry, notably past ownership of Celanese Corp. and Nalco
Company, this investment will assist Bluestar in its growth and
expansion.

Antony Leung, Blackstone's Chairman of Greater China, stated, "We
believe that continued economic growth will drive long term growth in
China's chemical sector. It is a privilege to invest alongside a
superb management team in a leading company in one of China's key
industrial sectors."

Ben Jenkins, Head of Blackstone Asia Pacific Private Equity,
added, "Bluestar's focus on innovation and technology has made it the
leading specialty chemical company in China. We are looking forward to
using our global network to accelerate and extend growth of the
Company both in China and abroad."

UBS AG acted as financial advisor to ChemChina, and Merrill Lynch
acted as financial advisor to Blackstone on this transaction.

The transaction is subject to final regulatory approvals.

About ChemChina

ChemChina, a large State-owned enterprise, was established in 2004
following the restructuring of certain enterprises directly
subordinate to the former Ministry of Chemical Industry. After three
years' development, it has become a leading chemical group in China.
ChemChina has 92 production and operation enterprises, and 24
scientific and research and design institutes.

About Bluestar

China National Bluestar (Group) Corporation is a core part of
ChemChina's subsidiary companies. Bluestar was founded twenty three
years ago by Mr. Ren Jianxin with a group of seven individuals taking
a loan of RMB 10,000 in Lanzhou. Bluestar is a leading manufacturer of
new material and specialty chemical products. For detailed
information, please visit www.china-bluestar.com

About The Blackstone Group

The Blackstone Group is a leading global alternative asset manager
and provider of financial advisory services. Its alternative asset
management businesses include the management of corporate private
equity funds, real estate opportunity funds, funds of hedge funds,
mezzanine funds, senior debt funds, proprietary hedge funds and
closed-end mutual funds. The Blackstone Group also provides various
financial advisory services, including mergers and acquisitions
advisory, restructuring and reorganization advisory and fund placement
service.