March 8, 2007
Company Name: Sekisui Chemical Co., Ltd.
Address of Head Office: 2-4-4 Nishi Tenma, Kita-ku, Osaka-shi, Osaka
Representative: Naotake Okubo, President and Representative Director
Stock Listings: Tokyo, Osaka (First section)
Company code: 4204
For Inquiries: Motokiyo Sanada, Senior Manager, Corporate Communications Department

TEL: +81 (3)-5521-0522

At the meeting of the board of directors of Sekisui Chemical, Co., Ltd. on March 8, 2007, a resolution was passed for the dissolution of Sekisui Lifetec Co., Ltd., a consolidated subsidiary of Sekisui Chemical, and details are set out below.

1. Background leading to Dissolution and Liquidation

The High Performance Plastics Company of Sekisui Chemical carried out business structure reform last year due to deteriorated levels of profitability of Sekisui Lifetec Co., Ltd., a company engaged in the manufacture and sale of household articles. The principal details of this reform are as follows.

(1) Withdrawal household articles business involving kitchen and bathroom equipments (end March 2006)

(2) Transfer of business operations for nursing care products to Matsushita Electric Works AGE FREE lifetec Co., Ltd. (April 2006).

(3) Transfer of business operations for interior products to Iwatani Materials Corp. (May 2006).
Since implementation of the above measures resulted in the termination of the role of Sekisui Lifetec Co., Ltd., it was decided to dissolve the company.


2. Overview of Dissolved Company (Sekisui Lifetec Co., Ltd.)

Head Office: 4-1-1 Sanjo-Oji, Nara-shi, Nara Prefecture
President: Masakazu Tsunoyama
Date of establishment: April 2, 2001
Capital: 4 million yen
Employees: 3
Shareholder: Sekisui Chemical Co., Ltd. (100%)

3. Schedule

March 31, 2007: Dissolution
End September 2007: Completion of liquidation

4. Outlook for the Future (Effects on Sekisui Chemical)

The effects of the dissolution of Sekisui Lifetec Co., Ltd. will be minimal and will not change the forecast of achievements for FY2006 (consolidated and non-consolidated).