News Releases 2006

Price of SEPTON Compound Revised

September 25, 2006
Kuraray Plastics Co., Ltd.
(Kuraray Group)

Kuraray Plastics Co., Ltd. announces that the price of Kuraray Plastics's styrenic thermoplastic elastomer SEPTON compound will increase by ¥30 per kilogram for shipments commencing October 2, 2006.

SEPTON compound, a substitute for polyvinyl chloride and vulcanized rubber, is utilized as an eco-friendly molding material. It has attracted strong demand in the manufacture of auto parts, parts for household goods, electronic components, as well as for medical and industrial products.

Kuraray Plastics revised the price of SEPTON compound last summer due to price hikes of major raw materials. However, raw material prices have continued to hover at high levels and, despite the Company's efforts to reduce costs, last year exceeded the feasible scope of cost cutting. Operating revenues from SEPTON compound have thus deteriorated rapidly.

Under these circumstances, Kuraray Plastics will implement the following price revision with the aim of maintaining SEPTON compound's stability of supply and improving profitability.

1. Scope of revision
SEPTON compound
2. Price increase
¥30 per kilogram
3. Effective date
Shipments from October 2, 2006