News Releases 2006

Notice Concerning Property Transfer

March 23, 2006
Kuraray Co., Ltd.

Kuraray Co., Ltd. hereby announces that a resolution was passed at today's Board of Directors meeting regarding the transfer of the following property.

1. Reason for Transfer

As part of efforts to enhance revenues from Kuraray's real estate assets, the Company determined to transfer the property through the sale of trust beneficiary rights.

2. Overview of Property Transfer

Property and Location Book Value
Transfer Price
Current Status
Land: 126,081m²
Building: Retail facilities(Kuraray ownership of floor space: 65,911m²)
Location: 1Mizue,Kurashiki City, Okayama Prefecture
3.52 10.7 Currently being leased to AEON Mall Co., Ltd. as the AEON Kurashiki SC

3. Overview of Transferee

Company AEON Mall Co., Ltd.
Location 1-5-1 Nakase, Mihama-ku, Chiba City, Chiba Prefecture
Representative Yoshiharu Kawato, President
Capital ¥7,796 million (as of August 31, 2005)
Primary Shareholders AEON Co., Ltd. (53.5%)
Business Activities Development and management of large-scale shopping centers
Relationship to Kuraray Leases land and building from Kuraray

4. Transfer Date

The transfer contract and property transfer are concluded on March 24, 2006.

5. Outlook

Proceeds from the transfer of the above property will be accounted for as extraordinary income, and have been figured into performance outlook. (for non-consolidated and consolidated financial results)