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Momentive Performance Materials and Zhejiang Xinan Chemical plan expansion of joint venture in China

April 27, 2011

Will increase siloxane production to meet growing demand for silicone-based products.

Momentive Performance Materials Inc. (MPM) and Zhejiang Xinan Chemical Industrial Group (“Zhejiang Xinan”) have announced the planned expansion of manufacturing capacity by their joint venture company, Zhejiang Xinan Momentive Performance Materials Co., Ltd. The joint venture company’s plant in Jiande, China, which has annual production capacity of approximately 50,000 metric tons of siloxane, started its first phase of operations in the fourth quarter of 2010.  With the expansion, siloxane production capacity is expected to triple to an estimated 150,000 metric tons per year, commencing in 2013. In connection with the planned expansion, Zhejiang Xinan and MPM will make capital contributions of approximately $33 million and $32 million, respectively, to the joint venture company for a total new investment of $65 million. The joint venture company is owned 51 percent by Zhejiang Xinan and 49 percent by MPM.