October 2, 2007
Sekisui Chemical Co., Ltd.

Increased Global Share Achieved through Expansion of System
for Production of Interlayer Film for Automobiles
Plant for Manufacture of Interlayer Film for Laminated Glass Completed
in Kentucky State, U.S.A.

Taking a major step in the acceleration of global expansion of interlayer film business, the High Performance Plastics Company (President: Takayoshi Matsunaga) of Sekisui Chemical Co., Ltd. (President: Naotake Okubo: Hereinafter referred to as Sekisui Chemical) has completed construction of the plant for the manufacture of interlayer film for laminated glass that has been ongoing in America. Sekisui Chemical is in the process of global expansion of its manufacture and sales of interlayer film for laminated glass and boasts a top share of 40% of the world market for interlayer film for automobiles (Estimated in FY2006 by Sekisui Chemical).

In October of this year, the new plant in Kentucky State, U.S.A., Sekisui Chemical's sixth interlayer film manufacturing plant, will go into operation. The U.S. market, booted by the success of Japanese auto-manufacturers, boasts a production scale that continues to exceed 10 million units with its annual production of 10.88 million units (FY2006). Previously, sales of interlayer film in the North American market were dependent on exports from Japan. Switching to a manufacturing at source of demand approach will enable Sekisui Chemical to capture a major market. Additionally, the new plant will also manufacture sound acoustic films to match improvements in on-board comfort.

Through its manufacturing at source of demand approach and its high-performance Sound Acoustic Film, Sekisui Chemical aims to improve services to auto-manufacturers and to achieve a 30% share (Sekisui Chemical estimate for FY2006: 22%) of the North American market for interlayer film for laminated glass for automobiles and a 44% share of the global market for interlayer film for automobiles.

1. Overview of the American Interlayer Film Manufacturing Plant

2. Concerning Sekisui Chemical Interlayer Business

Sekisui Chemical's interlayer film business is expanding due to increased production volume to meet the needs of heightened automobile production levels in Asia and enlargement of the area of glass used in a single automobile. Additionally, demand for high performance interlayer film such as Sound Acoustic Film, Solar Control Film and Sound and Solar Film is on the increase to meet the needs of enhanced levels of on-board comfort in Japan, Europe and America.

At the present time, Sekisui Chemical's sound insulating interlayer film is used in one out of every eight new automobiles (Estimated by Sekisui Chemical, FY2006), showing a steady rate of expansion. Taking advantage of this trend, Sekisui Chemical opened an interlayer film raw materials plant in the Netherlands in January of this year, the first such plant to be launched after the plant in Japan.

Sekisui Chemical plans to make positive advances through the development and expansion of sales of high performance interlayer film at the same time expanding its interlayer film business through strategies including the expansion of manufacturing bases in BRICs countries such as China and India, where automobile production continues to grow.

3. List of Interlayer Film Manufacturing Bases

4.Concerning Expansion of Strategic Business Field "Automotive Materials (AT)"

In its mid-term management vision for FY06 - 08 "GS21 - Go! Frontier," Sekisui Chemical has ranked automotive materials (AT) as a strategic business field and is focusing investment of management resources into this field to achieve positive expansion.

<Recent Examples of Equipment Investment into the AT Field>