Kuraray announces the upward revision of its year-end per-share dividend distribution for the fiscal year ended March 31, 2007, based on a decision reached at a Board of Directors meeting held on April 26, 2007.

1. Rationale for Revision of Dividend Forecasts

The allocation of profits to shareholders is one of Kuraray's top management issues. Our target is to maintain a dividend payout ratio equivalent to or more than 30% of consolidated net income and to increase returns to shareholders through continuous improvements in performance. In addition, during the three-year span of our GS-21 medium-term business plan (fiscal 2006 - 2008) we will aim to improve capital efficiency and to attain a shareholder return ratio of 70% through dividend distributions and the buyback of treasury stock. Based on these aims and our fundamental dividend policy, we intend to propose the following upward revision of year-end dividends with due consideration given to performance results for the year ended March 31, 2007, at the Annual General Meeting of Shareholders scheduled to convene in June 2007.

2. Revision Details (¥ per share)

  Interim dividend Year-end dividend Annual dividend
Previous forecast
(as of November 2, 2006)
8.50 8.50 17.00
Revised forecast 8.50 10.00 18.50
Previous fiscal year distribution
(fiscal year ended March 31, 2006)
6.50 8.50 15.00