July 5, 2005
Sekisui Chemical Co., Ltd.

• To have water and environmental infrastructure, medical services, and automobile-related businesses and IT form the core of our business growth
• To achieve annual sales of 50 billion yen together with annual business profits of 10 billion yen and an operating profit ratio of 20% by fiscal year 2010

Sekisui Chemical, Co., Ltd., with Naotake Okubo as president, has drawn up "CHINA500", a mid- and long-term business vision up to the fiscal year 2010. This vision has been formulated to increase momentum for our company's business expansion in the constantly expanding Chinese market.

I. The Purpose of This Business Vision

As we aim to transform ourselves into a "stand-out" and "profitable" "premium company", we regard our business in China as the core of our business operations for maintaining and strengthening our profit-earning capacity and growth potential. Since 2002, we have been establishing the foundation of our ten local companies, comprised of seven production companies, two trade companies and one other company handling other businesses. Taking Chinese domestic demand in to consideration, we have resolved to focus on four business areas where we will strive for a full-fledged business launch: water and environmental infrastructure; automobile-related businesses; medical services; and IT. With these businesses as our main focus, we have formulated a new vision to expand the scale of our business. At the same time, to accomplish our vision, we will ensure the early establishment of our corporate brand "SEKISUI" in China, all this in addition to our endeavors to increase the hiring of local personnel, conduct thorough risk management, and create an efficient corporate organization system in China.

II. What is "CHINA500"?

1. Business Vision
   Supplying the Chinese users with our first-rate products made by our "stand-out" technologies, and contributing to industrial development.
   
   
   1. To focus on a profitable business area where our very best technologies will be featured
      
      
   2. In addition to the business expansion of our already-established automobile-related^* and IT^** businesses, we plan to fully launch production businesses for three industrial products possessing great potential for growth: high-performance water supply pipes; reinforced plastic composite pipes; and evacuated blood collection tubes
      *: (S-LEC films (interlayer films) for laminated glass, foamed polyolefin)
      **: Industrial Tape, liquid crystal molecules, high-performance resins
      
      
   3. To achieve a high profile in our technology and reliable management in order to meet the needs of Chinese society
   
   
2. Business Goal
   Company Goal: annual sales of 50 billion yen and an annual business profit of 10 billion yen with an operating profit ratio of 20% in the fiscal year 2010
   
   
   1. Entire Group
      
      1. Management Index
         
         (   ): sales figure by export, Unit: 100 million yen; people

         	Business Performance in FY 2004	Projection for FY 2010
         Annual Sales	72 (60)	520 (100)
         Operating Profit	14	103
         Number of Employees	450	1,600

         
         
      2. Gross Investment (including Capital Investments, M&A, etc.)
         
         Accumulated amount from FY 2002 to FY 2004: 8.7 billion yen
         Accumulated amount from FY 2005 to FY 2010: 10 billion yen
         
      
      
   2. Each Company
      
      (   ): sales figure by export, Unit: 100 million yen; people

      		Business Performance in FY 2004	Projection for FY 2010
      Urban Infrastructure & Environmental Products Company	Annual Sales	2	300
      	Operating Profit	-	63
      High Performance Plastic Company	Annual Sales	70 (60)	220 (100)
      	Operating Profit	14	40

   
   
3. Priority Areas and Products
   

   	Urban Infrastructure & Environmental Products Company	High Performance Plastics Company
   Water and Environmental Infrastructure	High-Performance Water Supply Pipes/ Domestic MarketReinforced Plastic Composite Pipes/ Domestic MarketFFU Railway Sleeper/Domestic Demand
   Automobile-Related Businesses		S-LEC Films (Interlayer Films) for Laminated Glass/Domestic MarketFoamed Polyolefin/Domestic Market
   Medical Services		Plastic Evacuated Blood Collection Tubes/ Domestic Market
   IT Business		Industrial TapeLiquid Crystal MoleculesHigh-Performance Resins(All three for domestic demand; exported from Japan)
   Other	Polyethylene EF Fittings/Export to Japan	Packaging Tape/Export to Japan

   
   
4. Corporate Brand Strategy
   We will promote a corporate brand strategy to raise our corporate profile and to quickly establish an integrated brand in order to realize our business vision. Rather than having each of our business divisions further promote our corporate image separately, we will endeavor to increase our corporate profile and to establish the SEKISUI brand, presenting our company-wide philosophy and policies under our corporate brand name "SEKISUI". Also, we will actively conduct PR activities targeting public sectors including government-affiliated organizations and universities & research institutes to promote business areas that will contribute to the improvement of infrastructure in such areas as water and the environment or medical services.
   
   
   1. Revamping of the Brand Logo and Slogan for the Chinese Market
      
      We will pursue the establishment of the SEKISUI brand in China by promoting each of our products by using the corporate image of our brand name "SEKISUI."
      
      
      The waters of scientific technology enrich our lives
      
      * Our company's name, "Sekisui" is derived from a passage in the ancient Chinese book, "The Art of War": "A victor has his soldiers charge onto the enemy's land with the same force as if he let an accumulation of water fall down thousands of meters into a valley, which is the very tactic for victory." ("Sekisui" means "accumulation of water")
      
      
   2. Establishment of Our Corporate Brand Name in order to set up Sekisui as a Trustworthy Company Able to Meet the Needs of Chinese Society
      
      We will appeal to such public sectors as government-affiliated organizations, universities & research institutes and medical institutes by:
      
      1. Our strategy to establish our brand name through social action programs and company events
         
         
      2. Social action programs through business operations
         
         • Contributing to enhanced safety in the health care environment by adopting evacuated blood collection tubes
           
           
         • Contributing to solving water problems by adopting high-performance water supply pipes and reinforced plastic composite pipes
      
      Press Conference for the Chinese press in Beijing
      We will hold a press conference for the Chinese press regarding our business direction and strategies for our priority areas in China. Please see the following for the details:
      

      Content:	Company PR (Promotion for our corporate brand "SEKISUI") PR for Business Strategy (regarding water and environmental infrastructure and business relating to medical services)
      Time and Date:	Monday July 11th, 2:00 pm - 4:00 pm
      Place:	China World Hotel Beijing No. 1 Jianguomenwai Ave. Beijing
      Target:	70 Chinese Press companies (newspaper companies, TV networks, specialized magazines for various areas)
      Presenters:	Naotake Okubo, President of Sekisui Chemical Co., Ltd. Zhou Yong Qing, President of Xinjiang Yongchang-Sekisui Composites Co., Ltd. Liu Nai Fa, Vice President of Beijing Sekisui Trank Medical Technology, Co., Ltd.

[Reference]
Outline for the Expansion of Our Business into the Chinese Market (Seven production companies and three other companies)


[High-Performance Plastics Companies ]

Name of Company	Shanghai Sekisui Holy Plastics Co., Ltd.	Beijing Sekisui Trank Medical Technology Co., Ltd.	Sekisui S-LEC (Suzhou) Co., Ltd.	Sekisui High Performance Packaging (Langfang) Co., Ltd.
Description of Business	Producing and selling formed polyolefin (for domestic the market)	Producing and selling plastic evacuated blood collection tubes (for domestic the market)	Producing and selling S-LEC films (interlayer films) for laminated glass (for domestic the market)	Producing packaging tape (for export)
Location of Main Office	Jiading Village, Shanghai	Haidian District, Beijing	Suzhou New District, Suzhou, Jiangsu	Langfang E&T Development Zone, Hebei
President/chairman	Masaru Noriki/ Toshiya Yasunaga	Mutsumi Fukuda/ Junichiro Shinoda	Koji Enatsu/ Yasunori Tanaka	Shigeo Toyohashi/ Shigeo Toyohashi
Controlling Share	51%	55%	100%	100%
Date of Establishment	January 2003*	June 2003	April 2003	December 2002

* Date of Equity Participation

[Urban Infrastructure & Environmental Products Companies ]

Name of Company	Wuxi SSS-Diamond Plastics Co., Ltd.	Sekisui (Qingdao) Plastic Co., Ltd.	Xinjiang Yongchang-Sekisui Composites Co., Ltd.
Description of Business	Producing polyethylene EF fittings (for export)	Producing and selling high-performance water supply pipes (for domestic demand)	Producing and selling reinforced plastic composite pipes (FRPM pipes) (for domestic demand)
Location of Main Office	Wuxi National High & New Technology Industrial Development Zone, Wuxi, Jiangsu	Qingdao Economic & Technology Development Zone, Shangdong	High Techical Industrial Zone, Miquan Xinjiang
President/ chairman	Hideo Tagashira/ Kiyoshi Kimura	Hideo Tagashira/ Kuniaki Mouri	Zhou Yong Qing/ Masahiro Tsukamoto
Controlling Share	51%	90%	60%
Date of Establishment	June 2002	July 2002	April 2005*

* Date of Equity Participation

[Housing Company ]

[Sales Subsidiaries ]

Name of Company	Sekisui Dalian Housing Technology Co., Ltd.	Sekisui (Shanghai) International Trading Co., Ltd.	Sekisui (Hong Kong) Ltd.
Description of Business	Designing and drafting housing components	Trade Company	Trade Company
Location of Main Office	Zhongshan District Dalian	Shanghai	Hong Kong
President/ chairman	Hidemi Uno/Tadao Ichii	---/Nobuo Kobayashi	---/Nobuo Kobayashi
Controlling Share	100%	100%	100%
Date of Establishment	April 2004	May 2003	January 1976

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.