Positioning efforts to invigorate the circulation of its shares while broadening its shareholder base as key management priorities, Kuraray Co., Ltd. (hereafter "Kuraray" or "the Company") recognizes the reduction of its share trading unit as an effective initiative. Based on this policy stance, Kuraray revised its share trading unit from 1,000 to 500 shares effective from April 1, 2004. Looking ahead, the Company will take into consideration trends in its share price, number of shareholders, liquidity and other factors, as well as the overall expected effect and other outcomes that would result from a reduction of its share trading unit.