Tosoh Corporation: The Chemistry of Innovation

Tokyo, Japan – Tosoh Corporation announced cumulative consolidated results for the third quarter ending December 31st of the present fiscal year (April 1, 2004 - March 31, 2005). Growing consumer confidence and an improving domestic economy combined with increases for exports and capital investment to support a surge in corporate profits. The chemical industry achieved gains in Asia that witnessed growth in demand during the period under review. China continues to play a formidable role as a consumer nation and as a result Tosoh Corporation benefited from high prices for bulk commodities.

As shipments for petrochemicals increased, markets prices for chloride resins among others abroad shot up resulting in successful price adjustments in Japan. These adjustments off-set the rapid rise in the cost of raw materials allowing the Company to report excellent results.

More than a decade of cutting fixed costs and strengthening the business combined with optimal operating conditions. This resulted in consolidated net sales growth of 24% over the previous fiscal year to JPY 424.7 billion (USD 4.24 billion)*. Operating Income grew 167% to JPY 40 billion (USD 400 million), while Ordinary Income jumped 284% to JPY 38.4 billion (USD 384 million). Net Income grew 223% to JPY 22.7 billion (USD 227 million). The outlook for the fiscal year ending March 31, 2005 projects net sales to increase to JPY 580 billion (USD 5.8 billion), and Net Income to more than triple, to JPY 26 billion (USD 260 million).

The Tosoh Group will take advantage of the favorable conditions to increase shipment volumes while strengthening business bases and improving competitiveness. In the Specialty Group, Tosoh’s effort continue to focus on building technological capabilities and developing product lines that are leaders in global or Asian markets.

Summary of 3Q results and comparison with previous fiscal year (PDF)

* For reference purposes alone, U.S. dollar amounts are translated from yen at the rate of ¥100 = US$1.

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 Stock Exchanges.

Stock Exchange Ticker Symbol: 4042

For more information, please contact:

Michael Hoover
International Public Relations
Tosoh Corporation
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 word "anticipates," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements.