Announcement of scheduled changes in management structure and personnel (for implementation in late June 2003)

1. Adoption of executive officer system

• A. We intend to adopt an executive officer system to clarify the responsibilities of top-level management with respect to day-to-day operations. The system will have the following principal objectives.
  • (1)So as to strengthen corporate governance, the two spheres of management functions -- strategic decision-making and supervision on the one hand, and swift implementation of policies in day-to-day operations on the other -- will be clearly separated.
  • (2)The number of directors will be reduced, thereby facilitating speedy decision-making.
  • (3)The Company's management structure will be rendered easier to understand, and the various areas of responsibility be made more transparent, thereby more completely fulfilling the Company's overall responsibility to explain its activities to stakeholders, principally its shareholders and other investors.
• B. Executive officers will be given supervisory authority over day-to-day operations at head office divisions, "in-house companies," and support divisions. They will be responsible for execution and profit-making, and will be appointed for periods of one year at a time. The appointment of each executive officer will be proposed by the president of the Company and approved by the Board of Directors.
• C. Together with the introduction of the executive officer system, the maximum number of directors will be reduced from 30 at present to 10, while the term of office of directors will be shortened from two years at present to one year. The members of the Board of Directors will consist principally of the chairman and president of the Company, officers responsible for the supervision of more than one in-house company, and officers with responsibility for specialist matters with authority extending horizontally across a significant portion of the Company as a whole.

2. Strengthening of functions of corporate auditors

To enable corporate auditors to effectively audit the activities of the Company's top management and of the executive officers, the number of corporate auditors is to be increased by one to five. The additional corporate auditor will be an auditor who has not previously served as an employee or director of the Company.

3. Establishment of management advisory committee

A "management advisory committee" is to be set up to provide advice to the Company's president regarding management of the Kuraray Group for the rigorous application of compliance, a greater focus on the interest of shareholders, and improved management transparency.
Details regarding the advisory committee, including its composition and rules of operation (scope of matters for discussion, frequency of meetings, terms of office of members, etc.) are to be determined at a later date.

1. Change of Directors

(1) Promotion

(2) Retiring directors to assume the post of senior executive officer

(3) Retiring directors other than above

2. Change of Corporate Auditors

(1) Candidate for position of corporate auditor

(2) Retiring corporate auditor

3. Directors and Corporate Auditors

4. New Post

(Current post as of April 1)
Senior Executive Officer: Satoru Mizushima
(Director and General Manager of Corporate Strategy and Planning Division)

Senior Executive Officer: Seiji Wajiki
(Director and General Manager of Okayama Plant)

Senior Executive Officer: Nobusuke Takeuchi
(Director and President of Fibers and Industrial Materials Company)

Senior Executive Officer: Noriaki Yoshimura
(Director and General Manager of Research and Development Division)

Senior Executive Officer: Osamu Asaba
(President of Clarino Company)

Senior Executive Officer: Nobuo Iwawaki
(General Manager of Corporate Management Division)

Executive Officer: Katsuji Shimoda
(General Manager of Nakajo Plant)

Executive Officer: Mitsuhiko Takaoka
(President of Fastening and Non-Woven Fabrics Company)

Executive Officer: Manabu Kusano
(General Manager of Kashima Plant)

Executive Officer: Hiroaki Yoshino
(President of Optical Products Company)

Executive Officer: Toshihide Sakai
(President of Poval Company)

Executive Officer: Susumu Gotanda
(President of Methacrylate Company)

Executive Officer: Yoichi Ninagawa
(President of Chemicals Company)

Executive Officer: Fumio Ito
(Manager of Personnel Department)

Executive Officer: Shiro Kataoka
(General Manager of Purchasing and Logistics Division)

Executive Officer: Noboru Yanagida
(President of Eval Company)

5. Brief History Description of Candidates for Corporate Auditors

Akira Matsuzawa (Born August 3, 1939)

Toshimitsu Kitagawa (Born February 12, 1939)