Acquisition of PVB Film Business from HT Troplast Completed

Kuraray Co., Ltd. signed a contract in November 2004 for the acquisition of the PVB (polyvinyl butyral) film business of HT Troplast AG of Germany and initiated the necessary procedures. Kuraray received official approval to proceed with the acquisition from the relevant governing authorities, completed the required administrative and legal procedures on December 30, and has assumed the operation of the film business.

1. The Acquired Business

The acquired operations will become one business division of Kuraray Co., Ltd.'s German subsidiary, Kuraray Specialities Europe GmbH (hereinafter, "KSE").

Kuraray Specialities Europe GmbH (After the acquisition)

(1) Company name	Kuraray Specialities Europe GmbH
(2) Capital	20 million euros(100% funded by Kuraray Europe GmbH(*))
(3) President	Dr. Gerd Lepper
(4) Headquarters	Frankfurt, Germany
(5) Business	Development, manufacture and sale of PVA resin, PVB resin and film
(6) Production capacity	PVA : 50,000 tons per year PVB : 20,000 tons per year PVB film : 26,000 tons per year
(7) Net sales	Approximately 200 million euros
(8) Number of employees	Approximately 500

* Kuraray Europe GmbH: Kuraray Europe GmbH is a wholly owned subsidiary of Kuraray Co., Ltd. and its European headquarters company

The PVB film business

(1) Location	Troisdorf, Germany
(2) Net sales	Approximately 100 million euros(included in KSE net sales figure above)
(3) Number of employees	Approximately 250(included in KSE employees figure above)
(4) Network	Manufacturing subsidiaries in Germany and Russia, marketing subsidiaries in the United States, Malaysia, and India

2. PVB film applications

Interlayer films for laminated safety glass for construction and automotive use

* Laminated safety glass: Laminated safety glass is a special purpose glass made by sandwiching a layer of PVB film between two sheets of glass. Because it is crack- and shatter-resistant, it is used in automotive windshields and in the construction field.