Tosoh Corporation: The Chemistry of Innovation

Tokyo, Japan - Tosoh Corporation announced investment of approximately JPY 17 billion to further increase capabilities and competitiveness of their fully integrated chlor-alkali operations. Aniline production facilities will be constructed that will supply Tosoh affiliate, Nippon Polyurethane Industry Co., Ltd (NPU), with a capacity of 150,000 tons. Aniline serves as the raw material for MDI*, one of NPU's main products in supplying the rapidly growing polyurethane industry. Demand for polyurethanes is strong in the Asian region where total annual demand is expected to grow by almost 10%.

As a leading supplier of isocyanates to the polyurethane industry in Japan and Asia, NPU maintains the largest production capacities within the Asia Pacific region for several key polyurethane products, such as MDI, TDI, and isocyanate derivatives. NPU will continue to increase capacities that are now 170,000 metric tons per year for MDI, and 25,000 metric tons per year for TDI. Polyurethanes play an essential part in everyday life supplying the electronics, medical instruments, automotive, and construction industries through numerous applications.

The broadening scope of Vinyl Chain* operations is being accomplished through additional bolstering of NPU activities. NPU holdings were increased to 35% in 2001 and investment is being undertaken to make processes more cost competitive. Including this announcement, Tosoh plans a combined investment now of JPY 22 billion in the construction of aniline and carbon monoxide production facilities. Both facilities will be constructed at Nanyo Complex with the carbon monoxide facilities scheduled for completion in June 2004, and the aniline facilities in March 2005.

The Vinyl Chain supplies chlorine for the production of isocyanates at NPU, and reciprocally Tosoh receives hydrochloric acid gas to be used in the production of vinyl chloride monomer (VCM). In this way, the Vinyl-Isocyanate Chain* makes better use of resources and generates further cost savings. As one of the largest chlor-akali operations in Asia, Tosoh continues to strengthen intra-group synergy, increase presence in growing markets, and execute a strategy to enable stable profitability.

*MDI and TDI are di-isocyanates that serve as the raw materials in the production of polyurethane.
The Vinyl Chain refers to a sequence of integrated manufacturing operations that produce several key vinyl-related chemicals from the basic commodities salt and ethylene.
The Vinyl-Isocyanate Chain represents the broadening of the basic Vinyl Chain processes to include the production of isocyanates.

Nippon Polyurethane Industry Co., Ltd.
Nippon Polyurethane Industry was established in 1960 to sustain the manufacture and sales of polyurethane materials and derivatives. In 1962, the company established a factory adjacent to Tosoh's Nanyo Complex, a source of necessary raw materials such as chlorine, and became Japan's first mass producer of the polyurethane raw material, TDI. Tosoh Corporation is the principal shareholder in Hodogaya Chemical, and Tosoh Corporation and Hodogaya Chemical retain a 100% interest in Nippon Polyurethane Industry. There are 650 employees and sales for the period ending March 2003 reached approximately JPY 50 billion.

For more information:
URL: http://www.npu.co.jp/

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 worldwide. The Company is listed on the Tokyo and Osaka Stock Exchanges.

Stock Exchange Ticker Symbol: 4042

For more information, please contact:

Michael Hoover
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.