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Price Increase of SEPTON™ and HYBRAR™ in North America and South America
July 25th, 2008

SEPTON Business Unit of Kuraray America Inc., a leading supplier of high performance Hydrogenated Styrenic Block Copolymers, will raise the transaction prices of Elastomer products effective September 1, 2008, or as existing supply agreements allow.

<All SEPTON™ and HYBRAR™ grades>
    USD 0.40 per pound

All list prices will be adjusted according to grade.

Increasing energy and feedstock prices have resulted in the steady escalation of costs to produce these specialty high performance materials. It is necessary to recover a portion of those increases to ensure ongoing supply and new product innovation.

This price increase will be in effect for all shipments on and after September 1, 2008.Other terms and conditions are unchanged.

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