INFORMATION MEMO May 15th2017 Increases in PSB INDUSTRIES' product and service prices

Following successive announcements on capacity reduction and on increases in raw material prices (especially resins and rare earths), energy (gas and electricity), packaging and logistics costs, sub- contracting (metal, metallisation, varnishing, etc.) and labour costs, the PSB INDUSTRIES Group informs its clients and partners that it is obliged to announce price increases on its products and services.

For example, the price of polypropylene and polystyrene, the most frequently used raw materials in its plastic processing business units, have increased by more than 30% over the last six months and packaging costs by more than 20%. In addition, energy prices have gone up by almost 15% in France and America over the last year.

These increases can no longer be offset by our continuous improvement actions, purchasing initiatives or gains in productivity and will be applied as from the month of May on all the products and services sold in the Group's four business units, Food & Retail, Healthcare & Industry, Specialty Chemicals and Luxury & Beauty.

They will be applied in conjunction with existing contractual indexing adjustments in all geographical zones and may total from 3 to 6% depending on markets and existing contracts.

The usual contacts in our international commercial teams are, of course, at our clients' and partners'

service for finalizing changes in price conditions on a case-by-case basis.

On behalf of the Executive Committee Olivier SALAUN, Chairman and CEO

PSB INDUSTRIES is an innovative industrial group and market leader for packaging and specialty chemicals.

In 2016 the Group achieved revenue of €377 million, of which more than 60% internationally,

with production facilities in France, the USA, Poland, Japan, China and Mexico.

Euronext Paris - Compartment B - ISIN FR0000060329 - Cac Small, Cac Mid & Small, All-Tradable Indices Full financial results for the company are available at: www.psbindus.com- finance@psbindus.com PSB INDUSTRIES is eligible for French PEA-PME savings accounts

PSB Industries SA published this content on 01 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 01 June 2017 15:56:23 UTC.

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