News Releases 2006

Report on Supplemental Information to Business Results for Fiscal 2005
(Perspective and Policy Regarding the Reduction of Minimum Trading Unit)

June 6, 2006
Kuraray Co., Ltd.

Kuraray announces supplemental information to its Consolidated Business Results for the year ended March 31, 2006, announced on April 28, 2006, containing the Company's perspective and policy regarding the reduction in size of the minimum trading unit.

Perspective and Policy Regarding the Reduction of Minimum Trading Unit

Kuraray aims to expand its shareholder's base, while increasing the liquidity and distribution of its shares. In light of this, the Company views the reduction of the minimum trading unit as a means to achieve these goals. Based on this perspective, Kuraray resolved to reduce the minimum number of shares per trading unit from 1,000 to 500 on April 1, 2004. The Company will carefully consider the level of its stock price, number of shareholders, and liquidity trends to comprehensively assess and continue to review the expected effect from the reduction of trading unit.