kuraray


News Releases 2008

Notice Concerning the Dissolution of Subsidiaries

March 11, 2008
Kuraray Co., Ltd.

Kuraray Co., Ltd. (the "Company") announces the dissolution of subsidiaries Kuraray Singapore Pte., Ltd. ("KS") and Kuraray Specialities Asia Pte., Ltd. ("KSA"), in accordance with a decision reached at a Board of Directors meeting held today.

1. Summary of the Subsidiaries

(1)
Company name Kuraray Singapore Pte., Ltd.
Headquarters 331 North Bridge Road, #18-02 Odeon Towers, Singapore 188720
Representative Toshihide Sakai
Principal businesses Holding company, coordination of local subsidiaries
Established September 17, 1996
Capital US$54,485,000
End of fiscal period December 31
Major shareholder Kuraray Co., Ltd. 100%
(2)
Company name Kuraray Specialities Asia Pte., Ltd.
Headquarters 331 North Bridge Road, #18-02 Odeon Towers, Singapore 188720
Representative Kenzo Sawada
Principal businesses Sales of Poval resins in Asia and Oceania regions
Established November 20, 1997
Capital US$25,834,000
End of fiscal period December 31
Major shareholder Kuraray Singapore Pte., Ltd. 100%

2. Reason for Dissolution

In 1996, KS and NIPPON GOHSEI SINGAPORE PTE LTD ("NSP"), a subsidiary of Nippon Synthetic Chemical Industry Co., Ltd., jointly established POVAL ASIA PTE LTD. ("PA") in equal shares to produce Poval resins. At the same time, KS established the wholly owned Poval resin sales company KSA for the purpose of handing Kuraray's Poval resin business in Asia and Oceania. On January 31, 2008, however, the Company acquired all PA's shares possessed by NSP, and PA became a subsidiary whose shares are equally owned by the Company and KS.

Having made a careful examination to determine the most efficient business operation system, the Company reached the conclusion that it is better to integrate all production and sales functions in PA. To that end, the Company decided to acquire all of the PA shares owned by KS, transfer KSA's sales functions to PA to dissolve KS and KSA.

3. Schedule

June 2008 Resolution for dissolution (plan)
July 2008 Commencement of liquidation process (plan)

4. Effect on the Company's Performance

The Company expects minor material effects on its performance (both consolidated and nonconsolidated) from the dissolution of subsidiaries.