Sumitomo Chemical and Tosoh Corporation to Re-organize Collaboration Linear Low-Density Polyethylene Production

Tokyo, Japan - Sumitomo Chemical Co., Ltd. ("Sumitomo") and Tosoh Corporation ("Tosoh") today announced an agreement to re-organize collaboration on linear low-density polyethylene (LLDPE) production through their joint venture, Chiba Polyethylene Co., Ltd. The terms of the agreement are as follows:

a. Effective the end of December 2004, Tosoh will transfer to Sumitomo its equity ownership (25%, 125 million yen) in Chiba Polyethylene Co., Ltd., which will then become a wholly owned subsidiary of Sumitomo. Concurrently, Sumitomo will acquire Tosoh's product off-take rights from the joint venture, corresponding to its equity shareholding (25% of the annual production capacity of 100 thousand tons).
b. As a transitional arrangement following the transfer of Tosoh's ownership in the joint venture, Sumitomo will supply LLDPE of Chiba Polyethylene to Tosoh during an agreed period of time.

In the future Sumitomo and Tosoh will pursue business development independently. Sumitomo will fully utilize the Chiba Polyethylene's gas phase LLDPE production facilities to manufacture a proprietary, new class of polyethylene (EPPE) to further accelerate market development of this new product.

Tosoh will continue to market LLDPE that is produced at the Yokkaichi Complex. The company will reinforce its strategy to differentiate itself from others in the polyethylene market by expanding a line of specialty polyethylene products including LLDPE, along with low-density polyethylene, ethylene vinyl acetate copolymer and high-density polyethylene. This will allow Tosoh to build a firmer base for its polyethylene business.

Chiba Polyethylene Co., Ltd.
Founded: February 1990
Representative: Takatoshi Suzuki (Sumitomo Chemical Executive Officer, Chiba Works General Manager)
Head office: Chuo-ku, Tokyo
Plant: Sodegaura City, Chiba Prefecture (Within the premises of Sumitomo Chemical's Chiba Works)
Scope of Business: Production of Linear Low-density Polyethylene
Capital: 500 million yen
Shareholding: Sumitomo Chemical 75%, Tosoh Corporation 25%
Production Capacity: 100,000 tons / year

For further information, please contact:
Sumitomo Chemical Co., Ltd.: IR & Public Relations Dept. +81-3-5543-5102
Tosoh Corporation: International Public Relations (See the contact information below.)

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.