September 2, 2004
Sekisui Chemical Co., Ltd.

• Development of the "2 x 6 (interwall ventilation) Unit Construction Method"
• Achievement of the "Sekisui's Advanced Living Comfort Standards": making health and living comfort into sciences
• Achievement of the "Sekisui's Advanced Living Comfort Standards" with "Zero-Utility-Cost"

Sekisui Chemical Co., Ltd. (President: Naotake Okubo) and the Housing Company (President: Itsuro Togo) will, from October 9, release nationwide (excluding Okinawa and high snowfall areas) the advanced living comfort and zero-energy-cost housing "Grand To You".

Based on the fundamental principle of "providing housing which is environmentally friendly and in which people can live safely and comfortably for more than 60 years," Sekisui Chemical has pushed forward with a housing construction, which is outstanding in its life cycle cost, while pursuing a comfort with the environment such as zero-utility-cost. Our new product, "Grand To You" has developed the new "2 x 6 (interwall ventilation) unit construction method" and has achieved "Sekisui's Advanced Living Comfort Standards with Zero-Utility-Costs."

I. Development of the new "2 x 6 (interwall ventilation) Unit Construction Method" High Thermal Insulation & High Air Tightness Specifications "Q (heat loss coefficient) = 1.6 w/m2 K" "C (air tightness ratio) = 2 cm2/m2" As a result of the high thermal insulation and high air tightness specifications from the "2 x 6 (interwall ventilation) unit construction method," the insulation efficiency has been markedly improved, even compared to a "Q = 1.9 w/m2 K" dwelling: external walls by 32%, ceilings by 17%, and floors by 18%. A Q value of 1.6 w/m2 K has been achieved for the building frame: the standard for Honshu and areas further south has been set to the equivalent of the level being sought for Hokkaido under the next-generation energy-saving standards. Strength & Reliability of the Highest Ranking in the Housing Quality Assurance Act Compared to "2 x 4" lumber, "2 x 6" lumber has more improved compressive and flexural strength. In terms of structural stability under the Housing Quality Assurance Act, the method has achieved the highest possible rank, naturally for earthquake resistance, but for wind resistance too. As a result of the interwall ventilation construction method, in terms of reducing deterioration under the Housing Quality Assurance Act, the highest ranking has been used a standard specification. Sound Insulation of External Walls Performs at Top Level for Wooden Dwellings The "2 x 6" external walls of a "Grand To You" are constructed with the three layers of SFC board (Sekisui Fiber-wood Cement board)., structural board and damp-proof gypsum board, and they also utilize a fibrous glass wool. We have achieved sound insulation at a top level for wooden houses. (Dr-40 standard) Large Spaces are Feasible By utilizing "2 x 6," it is possible to have a non-partitioned space of up to 60 m2, and it is possible to have large openings on two corners, thereby increasing the planning flexibility. II. Achievement of the "Sekisui's Advanced Living Comfort Standards": making health and living comfort into a science Surveys of stress, illness and accidents caused by housing; setting "Sekisui's Advanced Living Comfort Standards" Achieve the "Sekisui's Advanced Living Comfort Standards" with the best balance of a building frame with a high thermal insulation and high air tightness, an air quality unit, and whole-house air conditioning. In order to achieve the "Sekisui's Advanced Living Comfort Standards" in a "Grand To You," we securely control room temperature, room temperature variances, humidity, air quality and sound. We have employed a building frame with a high thermal insulation and high air tightness, with Q = 1.6 w/m2 K and C = 2 cm2/m2, as well as an air quality unit and whole-house air conditioning. III. Achieving the "Sekisui's Advanced Living Comfort Standards" with "Zero-Utility-Costs" We regard the reduction of heating and lighting costs as an absolute requirement for an advanced living comfort. By equipping "Grand To You" with a 5.75 kW solar power generating system (in the Tokyo district) and improving its performance, compared to regular energy-saving housing, the annual heating and lighting costs can be reduced by 423,000 yen. The additional initial investment cost of 2,568,000 yen can be recouped in 11.4 years. Zero-Energy-Cost Specification of the New "Grand To You" "Q = 1.6 w/m2 K" high thermal insulation and high air tightness structural frame Mounting of a highly efficient, space-saving 5.75 kW "single-crystal solar power generating system" Highly efficient "Eco Cute" (CO2 heat pump hot-water boiler) / All electric Development Concept for the "Grand To You" The development concept is a dwelling which is comfortable to live in and is highly-advanced in terms of heating, air quality and sound insulation, and which makes a science of the conditions to live healthily and comfortably using human engineering for quality life. What is more, from the perspective of environment-friendliness, it achieves zero-utility-costs.

Features of the "Grand To You"

I. Development of the new "2 x 6 (interwall ventilation) Unit Construction Method"

1. High Thermal Insulation & High Air Tightness Specifications
   "Q = 1.6 w/m² K"
   "C = 2 cm²/m²
   The "Grand To You" boasts high thermal insulation & high air tightness specifications because of a "2 x 6 (interwall ventilation) unit construction method." Even the traditional Two-U Home (2 x 4) has a maximum level thermal insulation efficiency of Q = 1.9 w/m² K, but the "Grand To You" makes considerable improvements on the thermal insulation efficiency of the traditional Two-U Home: ceilings by 17%, external walls by 32%, and floors by 18%.
   The structure of the external wall from the inside is: 12.5 mm of damp-proof gypsum board, 140 mm of thermal insulation, a vapor-permeable water-proof sheet, 9.5 mm of structural board, 15 mm of vent layer, and 12 mm or 16 mm of the exterior material SFC board. By inserting 140 mm of fibrous 13k glass wool, we have achieved a Q value of 1.6 w/m² K for the building frame, which is the same level as for District I (Hokkaido district) of the next-generation energy-saving standards.
   * We will continue to measure the C value (air tightness ratio) for all "Grand To You" houses.
   
   
2. Strength & Reliability of the Highest Ranking in the Housing Quality Assurance Act
   
   1. Compared to "2 x 4" lumber, the compressive strength for "2 x 6" lumber is 1.6 times stronger and the flexural strength is 2.5 times stronger. Furthermore, the walls have been accredited as being reinforced walls to a scale factor of 6, which means that in terms of structural stability under the Housing Quality Assurance Act, no higher rank can be applied, naturally for earthquake resistance, but for wind resistance too. It is now also possible to obtain the maximum grading for the narrow plan.
      
      
   2. As a result of the interwall ventilation construction method, in terms of reducing deterioration, the highest ranking (Class 3), being able to reside securely for 75-90 years, has been used as a standard specification.
      
      
3. Sound Insulation of External Walls Performs at Top Level for Wooden Dwellings
   External walls are constructed with the three layers of SFC board on the exterior, structural board and damp-proof gypsum board, and also a fibrous glass wool (140mm). A top level has been achieved for sound insulation efficiency of external walls in wooden dwellings.
   The noise next to a national highway with a fair volume of traffic is 80dB. With the Dr-40 sound insulation efficiency of "Grand To You" external walls, this noise would be reduced to a 40 dB level, or equivalent to the level in a suburban residential area at night.
   
   
4. Large Spaces are Feasible
   It is possible to have a non-partitioned space of up to 60m², and it is possible to have large openings on two corners, thereby increasing the planning flexibility. It is possible to produce a horizontally and vertically flexible sense of openness.
   

II. Achievement of the "Sekisui's Advanced Living Comfort Standards"

1. Survey of stress and illness caused by housing and causes of accidents; setting "Sekisui's Advanced Living Comfort Standards"
   
   1. The Relaxation Standard: less than 2°C at a height of 1.2 m above the floor
      With regard to the correlation between temperature fluctuations and stress (not including psychological factors), an experiment using thermography showed there is a difference between having a temperature variation of less than 2°C between the skin temperature at one's feet and at 1.2 m above the floor, and any greater temperature variation. It was recognized that feelings of comfort are only felt with a temperature variation of less than 2°C; at 4°C, feelings of discomfort begin to be felt; and at 6°C, it becomes uncomfortable.
      
      
   2. The Heat Shock Control Standard: less than 3-5°C horizontal temperature variations (a minimum for unoccupied rooms of at least 17°C)
      Heat shock is when one moves from a warm space to a cold space: blood vessels contract, a rapid variation in blood pressure is caused, and it can be responsible for a cerebral hemorrhage. Professor Dainaka of the Fukuoka Women's University argues that, in order to prevent heat shock; corridors, toilets and other usually unoccupied rooms should be maintained at a room temperature of at least 17°C, and that a horizontal temperature variation of less than 3 to 5°C room is preferable.
      
      
   3. The Cooling Disorder Control Standard: 28°C room temperature, 60% humidity, and less than a 5°C temperature variation with the outside
      During summer, there is the problem of cooling disorders. If there is a greater than 5-degree temperature variance to the outside temperature, the balance of the autonomic nerves can become upset, giving rise to insomnia, feelings of languidness, stiffness in the shoulders, diarrhea, or it can cause a summer cold. The Japanese Ministry of Land, Infrastructure and Transport recommends that the variance to the outside temperature be kept within 5 to 7°C room, and a great deal of research indicates a room temperature of 28°C to be good.
      
      
   4. The Restful Sleep Standard: room temperatures of at least 16°C during winter; 28°C during summer and less than 70% humidity; and less than 40 dB
      During sleep, there is non-REM sleep when the mind and body are at rest, and there is REM sleep when the mind is active and only the body is at rest. These are repeated at roughly a 90-minute cycle. Quality of sleep is very much related to "room temperature" and "noise". It is reported for room temperature, that during winter, a room temperature of 16°C or less will shorten the REM sleep and decrease the frequency of REM sleep, thereby reducing the quality of sleep. During summer, a temperature of 28°C and humidity of 70% or less, can achieve a deep, untroubled sleep (survey research by Professor Dainaka, Fukuoka Women's University). Noise can also be cited as being a factor influencing the quality of sleep. If there is 40 dB or less, which is equivalent to the noise level in a suburban residential area at night, then it is likely the sleep will be deep (not including psychological factors).
      
      
   5. The Healthy Air Quality Standard: Non generation of VOC, mold, etc indoors. Removal of pollen and NOx from the outside air
      The greatest source, or approximately 57% of materials ingested into a person's body during their life comes from indoor air, more than from food and drinking water. Ordinarily, indoor air contains CO2, allergy-causing dust, mold and mites, as well as volatile organic compounds (VOC). Measures to prevent the generation of these materials indoors are important, namely to strategically eliminate them from indoor air and to prevent the infiltration of pollen, NOx, etc from the outside air.
      
      
2. Achieve the "Sekisui's Advanced Living Comfort Standards" with the best balance of a building frame with a high thermal insulation and high air tightness, whole-house air conditioning, and an air quality unit.
   In order to achieve the "Sekisui's Advanced Living Comfort Standards" it is important to securely control the five elements of temperature, temperature variations, humidity, air quality and noise. In the "Grand To You," we are achieving these standards by employing a building frame with a high thermal insulation and high air tightness, with Q = 1.6 w/m² K and C = 2 cm²/m², as well as with an air quality unit and whole-house air conditioning.
   
   • Temperature and temperature variation control ? mostly effected by a high thermal insulation and high air-tightness building frame, as well as by whole-house air conditioning.
     
     
   • Air quality control ? achieved by a building frame with few gaps (C = 2 cm²/m²) and an air quality unit.
     
     
   • Humidity control ? predominately effected by an air quality unit.
     
     
   • Achievement of the noise standard ? achieved by the Dr-40 high thermal insulation and high air-tightness building frame.

* The air quality unit is a 24-hour Type I ventilation system, comprised of three types of air purifying filters (air filter, pollen filter, NOx deodorizing filter) and a dehumidifier unit. It removes dust, removes pollen, removes (deodorizes) NOx, and it also functions as a dehumidifier and heat exchanger.

III. Achieving the "Sekisui's Advanced Living Comfort Standards" with "Zero-Utility-Costs"

Estimation of annual heating and lighting costs
Building site: Tokyo, Total floor area: 147.72 m², Opening ratio: 24%, Solar power generating system: 5.75 kW, Air-conditioning: whole house, 24 hours, Type I ventilation (with heat exchanger), 4-person household

(1) Ordinary Energy-saving House (Q=4.0) Gas & electricity (2) Grand To YouGas & electricity 3) Grand To YouAll electric 4) Grand To YouElectricity (IH*1) Cooking Gas Gas Electricity (IH*1) Electricity (IH*1) Hot water Gas Gas Eco Cute*2 Eco Cute*2 Solar power generation n/a n/a n/a 5.75 kW Annual heating and lighting costs (yen) 421,280 224,510 163,340 -1,370 Savings from building frame efficiencies   -196,770 -196,770 -196,770 Savings from "All electric" and "Eco Cute"     -61,170 -61,170 Savings from solar power generation       -164,710 Total savings -196,770 -257,940 -422,650

* 1: IH refers to an induction heating cooktop.
* 2: Eco Cute refers to a CO2 heat pump hot-water boiler.

Looking at the annual heating and lighting costs, the "Grand To You" saves 196,770 yen from efficiencies in the building frame; 61,170 yen from going "all electric"; and 164,710 yen from the solar power generation system.

The additional initial investment cost of 2,568,000 yen for the zero-energy-cost "Grand To You" can be recouped in 11.4 years.

The "Zero-Energy-Cost specification" has been employed in six products since its quick installation as an option to two-story houses in January 2003 to the "Desio AE" which was released in June 2004.
Actual sales = 1,810 homes (January 2003 - March 2004)

Selling Prices & Sales Plans
Prices start from 600,000 yen per 3.3 m² (including a solar power generation system, an air quality unit and whole-house air conditioning).
Annual sales targets are 2,500 houses.

Press Contact Sekisui Chemical Co., Ltd. Corporate Communication Department Fax: (+81) 3-5521-0510

Disclaimer This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.