Kuraray announces the decision to increase prices of its domestic and overseas market-leading polyvinyl alcohol fibers KURALON and KURALON K-Ⅱ by ¥50 per kilogram respectively for d'omestic and overseas shipments commencing February 1, 2008. Six months have passed since the Company last increased product prices in August 2007.

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 a continuing drop in business that has extended well beyond permissible limits and despite the effect from the previous price revision and its own reduction endeavors.

Target items for price revisions are KURALON, the Company's mainstay product sold in the domestic and overseas markets for industrial 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 as a reinforcing fiber in materials including paper, nonwoven fabrics and rubber materials.

Kuraray will also increase prices for polyester staple fibers by ¥40 per kilogram for domestic and overseas shipments commencing February 1, 2008. Target products for price revisions 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:
¥50 per kilogram across the board for KURALON and KURALON K-Ⅱ
¥40 per kilogram across the board for polyester staple fiber
3. Effective date:
Shipments from February 1, 2008