In October 2005, Kuraray Co., Ltd. (headquarters: Chiyoda-ku, Tokyo; President: Yasuaki Wakui; hereafter "Kuraray") and T. CHATANI & CO., LTD. (headquarters: Chuo-ku, Osaka City; President: Yasuhiro Chatani; hereafter "CHATANI & CO.") entered into the collaborative development of ultra-bright, inorganic EL (electroluminescence) light-emitting materials, a world-first technology pioneered by CHATANI & CO. In April 2006, these companies together established the joint-venture company K•C Luminas Co., Ltd. (hereafter "K•C Luminas") with the aim of advancing the development of display light sources.

K•C Luminas, however, fell short of its expected development phase scheduling, failing to meet its target for the commencement of sample shipments in the fall of 2006. In light of this, Kuraray announces it will position K•C Luminas under its umbrella based on the following measures and with the aim of bolstering the company's development prowess.

Changes to ratio of capital contribution and company name of K•C Luminas

On February 23, 2007, Kuraray and CHATANI & CO. executed a change in the ratio of capital investment in the joint-venture company K•C Luminas from 50:50 to 90:10. In line with these changes, K•C Luminas will also undergo a company name change on April 1, 2007, to KURARAY LUMINAS CO., LTD. At the same time, Kuraray will take steps to strengthen the company's product development structure.

At the time of establishment (April 6, 2006)

Company name K•C Luminas Co., Ltd.
Representative Noriaki Yoshimura, President (Kuraray Director)
Location Ote Center Bldg., 1-1-3 Otemachi, Chiyoda-ku, Tokyo (Within Kuraray's Tokyo headquarters)
Capital ¥400 million (Kuraray 50%, CHATANI & CO. 50%)

After changes (as of April 2, 2007; underlined portions: as of the date changes were made)

Representative Koichi Kushida, President (Former Kuraray Senior Managing Director)
Location No change
Ote Center Bldg., 1-1-3 Otemachi, Chiyoda-ku, Tokyo (Within Kuraray's Tokyo headquarters)
Capital ¥400 million (Kuraray 90%, CHATANI & CO. 10%)

Based on the new company framework detailed above, Kuraray and CHATANI & CO. will work toward accelerating product development, establishing new technologies and gaining a keener awareness of business prospects for the future.

Kuraray Co., Ltd. Overview

President Yasuaki Wakui
Headquarters 1-1-3 Otemachi, Chiyoda-ku, Tokyo
Capital ¥89.0 billion (as of September 30, 2006)
Principal businesses Manufacture and sale of synthetic resins, chemicals, fibers and textiles

T. Chatani & Co., Ltd. Overview

President Yasuhiro Chatani
Headquarters 1-8-15 Azuchimachi, Chuo-ku, Osaka City
Capital ¥310 million (as of September 30, 2006)
Principal businesses Import, export and domestic trading of cars, tires, industrial equipment and machinery, distribution and cargo machinery, electric and electronic devices, tools and ironware, lumber, building materials, lifestyle-related products, and food products