kuraray


News Releases 2002

Notice concerning losses on write-down of investment securities and restructuring charges for the six-month period to September 30, 2002

October 22, 2002
Kuraray Co., Ltd.

With regard to "available-for-sale securities," as defined in Clause 21, Article 8 of the Regulations of Financial Statements, in line with the standards for fair value accounting for financial products, Kuraray Co., Ltd. will account for losses on write-down of investment securities where market value or valuations of a similar nature have fallen below the book value to a significant extent. The loss on write-down of the said securities as of the end of the six-month term ended September 30, 2002 (the first half of fiscal 2002) is shown below. Also shown below are the estimated amounts of restructuring charges for the six months to September 30, 2002.

1.Losses on write-down of investment securities and restructuring charges on a non-consolidated basis

Losses on write-down of investment securities for six months to
September 30, 2002 (A)
883
Restructuring charges for six months to September 30, 2002 (B) 1,838
Shareholders' equity as of end of March 2002 (C)
(A)/(C) x 100
(B)/(C) x 100
278,565
0.32
0.66
Ordinary income for term ended March 31, 2002 (D)
(A)/(D) x 100
(B)/(D) x 100
14,426
6.12
12.74
Net income for term ended March 31, 2002
(A)/(E) x 100
(B)/(E) x 100
1,670
52.87
110.06

Note: The Company's accounts settlement date is March 31.

2.Outlook

In our interim period for the first half of the 2002 fiscal year, the six months ended September 30, 2002, we plan to record extraordinary losses in the amount of ¥2,721 million, comprising ¥883 million in losses on write-down of investment securities and ¥1,838 million in restructuring charges. The said losses are not expected to have sufficient impact on business performance for the six-month period to necessitate the issuance of revised estimates. Business performance forecasts for the term ending March 31, 2003 are currently being compiled: they will be announced when the compilation has been completed.