Kuraray announces the decision to increase prices of its domestic and overseas market-leading polyvinyl alcohol fibers KURALON and KURALON K-II by 5% to 10% per kilogram for both domestic and overseas shipments commencing April 1, 2010. Twenty months have passed since the Company last increased product prices in August 2008.

Recently, due to sharply increasing crude oil and naphtha prices, the steep rises in raw materials and fuel costs far exceeded the Company's own cost reduction endeavors and brought about a rapid deterioration in profitability. Under these circumstances, Kuraray has decided to implement these price revisions to ensure a stable supply.

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 5% to 10% per kilogram for all shipments commencing April 1, 2010. Target products for these 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 thread and cloth.

1. Scope of revisions

All domestic and overseas shipments of KURALON and KURALON K-II, as well as polyester staple fibers

2. Price increases

By 5% to 10% per kilogram across the board for KURALON and KURALON K-II
By 5% to 10% per kilogram across the board for polyester staple fibers

3. Effective date

Shipments from April 1, 2010