Notice of the Dissolution of a Subsidiary

At a meeting of its Board of Directors held on March 22, 2006, Kuraray's wholly owned subsidiary Kuraray Trading Co., Ltd. decided to dissolve Kuraray Planning System Co., Ltd., a company in which it holds 100% equity.

1. The subsidiary Company

Name	Kuraray Planning System Co., Ltd.
Address	1-12-39, Umeda , Kita-ku, Osaka
President	Kenzo Murai
Established	June 11, 1997
Capitalization	¥10 million
End of fiscal year	March
Principal shareholder	Kuraray Trading Co., Ltd. 100%
Business activities	Planning, design and information provision for clothing, accessories and textiles

2. Reason for dissolution

Kuraray Trading has decided to outsource the subsidiary's business to improve the Group's operating efficacy.

3. Schedule

March 2006	Resolution for dissolution
August 2006	Liquidation complete

4. Effect on performance

While Kuraray Planning System is a Kuraray non-consolidated subsidiary accounted for by the equity method, its dissolution will have little effect on the consolidated performance of Kuraray Co., Ltd.