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SDK to Establish Aluminum Panel Subsidiary

May 16, 2001

Showa Denko K.K. (SDK) has decided to establish a subsidiary for the manufacture and sale of aluminum panels and sale of related materials by separating the business currently conducted by its Panel Division, Aluminum Fabricated Products Sector. The new subsidiary will be established next month and start operations on July 1, 2001.

This is in response to the intensified competition in the shrinking aluminum panels market. The establishment of the subsidiary will ensure effective use of resources and quick decision-making, thereby leading to speedier new product development and services.

The new subsidiary will be capitalized at ¥400 million and owned 100% by SDK. Headquartered in Kiba, Koto-ku, Tokyo, the new company will have annual sales of approximately ¥7 billion and have 113 employees. The names of the company and its president will be announced later.

The business started in 1964 with the manufacture and sale of insulating panels for prefabricated refrigerators and freezers. Since then, our panel products have been contributing to the growth of the cold chain: the system of distribution and storage of perishable foods for the benefit of producers and consumers.

Furthermore, our sandwiched panels produced under a strict quality control system provide high levels of heat insulation and precision in addition to the advantages of lightness and quick construction. As such, our panels are used in clean rooms for the electronics industry. Also, specially processed panels resistant to fungi are used in the food-processing and distribution industry.

The panels are being produced at Hikone, Shiga Prefecture, and sold through sales offices in Sendai, Kita-Kanto (Oyama), Tokyo, Nagano, Nagoya, Osaka, Hiroshima, Takamatsu, Fukuoka and Kumamoto.