Kuraray announces the decision to increase the prices of its domestic and overseas market-leading polyvinyl alcohol fibers KURALON and KURALON K-Ⅱ by ¥50 per kilogram respectively for domestic and overseas shipments commencing August 1, 2007. Ten months have passed since the Company last increased product prices in October 2006.

Kuraray decided to implement these price revisions as a result of steep rises in raw materials and fuel costs caused by surging crude oil and naphtha prices. The Company was compelled to make the decision due to an unexpected drop in business that extended beyond permissible limits and despite the effect from the previous price revision and its own cost reduction endeavors.

Target items for price revision are KURALON, the Company's mainstay product sold in the domestic and overseas markets for industrial material applications, and KURALON K-Ⅱ high-strength solvent type and water-solvent type fibers.

KURALON is used as a reinforcing agent for cement as an alternative to asbestos. It is also employed for other industrial applications including as a reinforcing fiber in paper, nonwoven fabrics, and rubber materials.

Kuraray also increases prices for polyester staple fibers by ¥40 per kilogram for domestic and overseas shipments commencing August 1, 2007 for the same reason. Target products for price revision are KRAFTER and other polyester staple fibers.

Kuraray's polyester staple fibers are used as raw stock in nonwoven fabrics, and as yarns and knits in industrial materials such as threads and clothes.

1. Scope of revisions
All domestic and overseas shipments of KURALON and KURALON K-Ⅱ, as well as polyester staple fibers
2. Price increase
KURALON / KURALON K-Ⅱ ¥50 per kilogram across the board
KRAFTER / polyester staple fibers ¥40 per kilogram across the board
3. Effective date
Shipments from August 1, 2007