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DuPont Dow and SDK To Dissolve Polychloroprene JVs

DuPont Dow Elastomers L.L.C.
Showa Denko K.K.
October 10, 2002

DuPont Dow Elastomers L.L.C. (DuPont Dow) and Showa Denko K.K. (SDK) today announced that they will dissolve their manufacturing and marketing joint ventures in Japan for polychloroprene (trade name: Neoprene) effective November 1, 2002.

The joint ventures are Showa DDE Manufacturing K.K. (SDEM), which manufactures Neoprene in Kawasaki, and DDE Japan K.K. headquartered in Tokyo, which markets Neoprene and other elastomeric products. SDEM is a 50-50 joint venture while DDE Japan K.K. is owned 69.9% by DuPont Dow and 30.1% by SDK.

The operation dates back to 1960 when SDK and DuPont established a 50-50 joint venture Showa Neoprene K.K. in Japan for the manufacture and sale of Neoprene and other elastomeric products.

DuPont Dow and SDK have agreed that the two will hereafter independently operate their respective elastomer businesses. Based on the agreement, SDEM will become a 100% subsidiary of SDK, and DDE Japan K.K. will be fully owned by DuPont Dow.

DDE Japan K.K. will continue to sell elastomers and DuPont Dow will continue its Neoprene operations globally.

SDEM will be renamed Showa Denko Elastomers K.K. and continue producing polychloroprene. And SDK will sell the product inside and outside Japan under the new trade name of "Shoprene,"aiming to expand its elastomer business.