Tosoh Announces Earnings Outlook for Fiscal 2004

Tokyo, Japan - Tosoh Corporation reported revisions in sales and earnings targets for the second half of fiscal year 2004 (April 1, 2003 - March 31, 2004). The revised consolidated forecast projects sales of JPY 484 billion, ordinary income* of JPY 25 billion, and net income at JPY 7 billion. Although this represents a 0.2% decrease in sales and a 46.2% drop in net income, ordinary income projections increase by 4.2%.

Expanding strong demand in China and an improved domestic economy combined with increased earnings in specialty-related markets and other positive factors to provide an opportunity for further financial strengthening. As a result, the Company decided to take an extraordinary loss of JPY 10.8 billion on fixed assets in compliance with accounting standards in Japan.

Restructuring, cost reductions, and focused development has positioned Tosoh to significantly benefit from the strong demand in China and the recovery in semiconductor and IT industries. Petrochemical and basic group sales are surpassing projections while specialty and electronic materials are becoming more robust. Tosoh continues to build a solid global presence through "integrated competitiveness" based on superior technology and a strong business infrastructure.

* Based on standard accounting practices in Japan, "Ordinary Income" represents income before extraordinary items and taxes.ts.
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 and is listed on the Tokyo and Osaka 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.