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SDK to Consolidate Commodity Aluminum Sales in Western Japan

November 28, 2003

Showa Denko K.K. (SDK) has decided to consolidate the Group’s commodity aluminum sheet and extrusions sales in Western Japan—Nagoya and westward—at its fully owned subsidiary, Showa Denko Aluminum Trading K.K. (SDAT), early next year.

Specifically, SDAT will become responsible for all sheet sales, excluding developmental products such as ST-60 alloy for use in heat sinks of plasma display panels, as from January 1, 2004. SDAT will also assume responsibility for all extrusion sales, excluding sales to SDK Group companies and some limited customers, as from April 1, 2004.

About 10 SDK employees will be seconded to SDAT to assist sheet/extrusion sales activities. After the consolidation, SDAT’s annual sales will increase to ¥15 billion in 2004.

As a result of the consolidation, overlaps in sales functions will be eliminated, resulting in higher efficiency as the Group. At the same time, SDAT’s sales network and close relationship with customers will be fully utilized. Furthermore, warehouses for sheets will be consolidated and deliveries will be expedited.

SDK’s Rolled Products Division and Extrusion Division will strengthen their marketing functions while SDAT will focus on sales functions.

SDK has taken a series of steps to strengthen the competitiveness of its commodity aluminum product operations, including the consolidation of extrusion plants, establishment of Showa Denko Sakai Aluminum K.K., and consolidation of sales agents in the Kansai region (establishment of SDAT in May 2003).

[Outline of Showa Denko Aluminum Trading K.K.]

1. Head office 1-1-1, Nishi Tanabe-machi, Abeno-ku, Osaka
2. President Masayoshi Yoneyama
3. Capital ¥249 million (owned 100% by SDK)
4. Number of employees 65
5. Annual sales Approx. 10 billion (for fiscal 2003)
6. Marketing offices in Osaka, Fukuoka, Tokushima, and Okinawa