September 27, 2005
Sekisui Chemical Co., Ltd.

In March 2006, Sekisui Chemical Co., Ltd. (President: Naotake Okubo) and the High Performance Plastics Company (President: Takayoshi Matsunaga) will launch sales of "S-LEC®SAF Milky White" - a new interlayer film for laminated glass, that combines noise insulation, design and safety properties.

* SAF = Sound Acoustic Film

I. Interlayer Films
Using the concept of inserting a film into glass, interlayer film for laminated glass is a resinous film that improves a range of functions, starting with the prevention of shattering glass. The market expansion that has accompanied the improvements to safety and convenience in automobiles and construction, reached a worldwide production volume in fiscal year 2004 of 163,000 tons. Breaking this figure down, about two-thirds is for laminated glass for automobiles, and about one-third is for construction. Including Sekisui Chemical, there are four interlayer film manufacturers across the world.

II. Sekisui Chemical's Interlayer Film Business
Since manufacturing began in 1958, our interlayer film business has grown mostly around the automobile industry. As the business has steadily grown with the advance of high performance technology for film, we have attained a global market share of 40% in automobile applications, and 8% in construction applications (internally generated estimates). We have production bases in five centers around the world (Japan, the Netherlands, Mexico, Thailand and China), and we have 14 distribution bases.

This February, in conjunction with the release of the high performance interlayer film "S-LEC®SSF", which combines both noise insulation and heat insulation properties, we proposed two new strategic directions that we would pursue: (1) further promotion of the high performance of film, and (2) global expansion. During this time, our noise insulating interlayer film has been introduced to 11 vehicle models, our heat insulating film to three models, and our noise and heat insulating film to one model. In addition to this, we have also decided to activate a raw resin plant in the Netherlands in 2007.

III. Overview of "S-LEC®SAF Milky White"
"S-LEC®SAF Milky White" is a high performance interlayer film, that combines the basic properties of interlayer films - making glass shatterproof, and protection from ultraviolet light - with additional design properties and noise insulation. It is Sekisui Chemical's first shot at high performance film designed for the construction industry, and it is expected to lead to the creation of a new market for interlayer films.

1. The laminated glass market for construction
   Laminated glass for construction can be broadly divided into two types: exterior - centering mostly on windows; and interior - such as partitions, etc. In the past, demand was concentrated on window-type applications, from the perspectives of security and anti-shattering. However, in recent years, with the increase in glass curtain walls and interior uses, there has been an expansion and increase in the demand for convenient and well-designed laminated glass.
   
   
2. Features of "S-LEC®SAF Milky White"
   By adding a pigment to the noise insulating interlayer film that has been used mostly in automobiles, we have enhanced the film to one of four characteristic functions: anti-shattering, ultraviolet protection, noise insulation, and semi-permeability. Under the concepts of "not being able to be seen or heard", this film allows a soft light to flow through, but blocks out noise.
   
   
   1. Safety and anti-shattering
      "S-LEC®SAF Milky White" will not shatter in strong winds or if hit by flying objects - a prerequisite for high-rise buildings. It is also effective in security for buildings.
      
      
   2. Reduction of ultraviolet light
      "S-LEC®SAF Milky White" cuts more than 99% of ultraviolet rays, which can cause interior fixtures and furniture to fade and deteriorate, and can cause sunburn.
      
      
   3. Sound insulating
      In external applications, "S-LEC®SAF Milky White" can reduce traffic noise. In internal applications, it works to secure privacy by not allowing sound to pass outside of rooms.
      
      
   4. Semi-permeability
      "S-LEC®SAF Milky White" obscures lines of vision, but allows a soft light to permeate. It provides for greater design properties in buildings, and creates a sense of comfort.

IV. Examples of "S-LEC®SAF Milky White" Applications

1. Construction and residential (interior applications)
   
   • Music rooms
     Musicians can concentrate on performing (practicing) without any worries of being watched while practicing. "S-LEC®SAF Milky White" is perfect for individual instrument or voice lesson booths.
     
     
   • Bathrooms, shower booths
     Being semi-permeable, "S-LEC®SAF Milky White" is difficult to see through from the outside, and can be used for shower booths, etc., at inner city hotels. It is also possible to embed a hotel's logo, or instructions or warnings. It is applicable to rest room booth as well.
     
     
   • Restaurants that emphasize ambience
     Being impervious to sound and light, "S-LEC®SAF Milky White" is perfect to use on internal glass in restaurants that cater for sensitive and high-quality customers. It is also an essential product for room partitions and dividers between kitchens and dining floors.
     
     
   • Panels and footplates for stairs
     Being milky-white in color, "S-LEC®SAF Milky White" obscures lines of vision while allowing light to pass. Glass stairwells provide extra security for women to climb up and down.
     
     
   • Individual ATMs
     Users can use ATMs safely, due to "S-LEC®SAF Milky White" obscuring lines of vision and blocking the sounds of buttons being pressed. It is perfect for sites where security is paramount.
     
     
   • Examination rooms in hospitals
     "S-LEC®SAF Milky White" is perfect for medical examination areas where the respect for privacy is crucial. Doctors and patients can talk, knowing that the patient's symptoms, etc. cannot be heard from outside.
     
     
   • Meeting rooms
     Being semi-permeable and noise-insulated, people outside a meeting room can tell if the room is occupied, but cannot hear the conversation inside. The room can be used for important business talks.
     
     
2. Construction and residential (exterior applications)
   Taking advantage of the distinct features of "S-LEC®SAF Milky White" - that is allowing light to softly filter through, but blocking the sound of rain and other noise - this new product addresses a wide range of applications, including sash windows, sky roofs, glass curtain walls and balconies.
   
   
3. Automobiles
   
   • Sunroofs
     A "S-LEC®SAF Milky White" sunroof allows soft light to flow into the vehicle, creating a sense of liberation and exhilaration. It also makes for a comfortable driving experience by shutting out outside noises with its optimum noise-insulation properties.
     
     

V. Interlayer Film Sales Targets
With the introduction of high performance film for the construction industry, our FY 2008 target for interlayer film for laminated glass in construction is a global market share of 18% (currently 8%). Including film designed for the automotive industry, we are aiming for an overall target for global share of 40%.