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SDK to Open Moscow Office to Promote Research

November 25, 2003

Showa Denko K.K. (SDK) will open a resident representative’s office in Moscow in January 2004 to make full use of R&D resources in Russia.

SDK started commissioning R&D work to researchers and research institutions in Russia in 1998 in cooperation with Iskra Industry Co., Ltd., a Tokyo-based trading firm specializing in business with Russia and China. The commissioned researches, involving over 10 research institutions, so far focused on the development of semiconductor-processing specialty gases and other chemical products.

Some of the research fruits have already been commercialized, including C4F6 dry etching gas. In addition, several projects are under way to utilize raw materials and products available from Russian firms.

Through the resident representative’s office in Moscow, SDK will facilitate commercialization of research results and ensure development of higher technologies. Specifically, the office will control the progress of R&D efforts, negotiate with research institutions and firms, search for new research institutions to work on new research themes, ensure timely delivery and shipment of raw materials and products, and collect relevant information.

After confirming positive results of the opening of the office, SDK will further proceed to establish its own laboratory employing Russian researchers.

Under the ongoing medium-term consolidated business plan called the “Sprout Project,” SDK is stepping up the development of differentiated product lines based on the strategic market unit (SMU) concept. SDK will fully utilize the high-level R&D capabilities in Russia in wide-ranging areas, such as organic/inorganic chemical technologies and aluminum material technology.