Tosoh Corporation: The Chemistry of Innovation

Tokyo, Japan - Tosoh Corporation reported revisions in sales and earnings targets for fiscal year 2003 (April 1, 2002 - March 31, 2003). The revised consolidated forecast projects an increase to JPY 470 billion in sales, JPY 20 billion in ordinary income, and a decrease to JPY 4 billion for net profit. Although Tosoh achieved increases against a backdrop of faltering global economies and rising prices for raw materials, overwhelming poor stock valuations were cited for the 32% drop in net profits. The total valuation stock loss was reported to be JPY 3.1 billion at the end of March, 2003. The extended recession in Japan, a twenty-year low for the Nikkei, and extraordinary geopolitical events all contributed to an overall unstable operating environment.

Nevertheless, Tosoh is moving ahead on various fronts to forge a profit base of at least JPY 15 billion even under the most severe conditions. The Company is reaching this goal through comprehensive evaluation of all business units, as well as implementing improvements in pricing structures and logistics. Additionally resources are being directed towards more effective R&D while moving ahead with overall strengthening and spinning off various services. Bolstered operations for petrochemicals and commodities will further expand to meet growing Asian demand, while specialty materials carve out global niche markets.

Results confirm that restructuring activities are paying off and the overall Tosoh Group will emerge from these most extraordinary times as stronger and more profitable. The revised consolidated forecast for next year, fiscal 2004 shows an increase to JPY 500 billion in sales, JPY 30 billion in ordinary income, and JPY 15 billion for net profit. Tosoh Corporation is committed to stepping up the pace of structural reforms and is well positioned for profitability in the next fiscal year.

* Based on standard accounting practices in Japan, "Ordinary Income" represents income before extraordinary items and taxes.

Tosoh Corporation
Headquartered in Tokyo, Japan, Tosoh Corporation is a diversified global chemical and specialty materials company. Founded in 1935, the Company has expanded its reach into high value-added businesses such as fine chemicals, scientific instrumentation, thin film materials, and quartzware. Tosoh is a multi-billion dollar corporation that employs more than 9,000 people in 19 countries. The Company is listed on the Tokyo, Osaka, and Nagoya Stock Exchanges.

Stock Exchange Ticker Symbol: 4042

For more information, please contact:
International Public Relations
Tosoh Corporation
Michael Hoover
m_hoover@tosoh.co.jp
Tel: +81-3-5427-5118
Fax: +81-3-5427-5198
www.tosoh.com

Disclaimer
This document contains forward-looking statements, including without limitation, statements concerning product development, objectives, goals, and commercial introduction, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the words "anticipates," "plans," "expects," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements.