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SDK to Provide Allowance for Dissolution of Showa Alumi Viewtech

February 1, 2005

Showa Denko K.K. (SDK) has decided to provide allowance, in its fiscal 2004 financial statements, for expected dissolution of its aluminum extrusions manufacturing subsidiary Showa Alumi Viewtech Co., Ltd.

Under the ongoing medium-term consolidated business plan, the Sprout Project, SDK has been proceeding with the restructuring of commodity aluminum operations. In this context, SDK has consolidated its extrusion operation sites and sold its shares in Nippon Amazon Aluminium Co., Ltd. (NAAC), a company for investment in an overseas smelter and importation of its aluminum ingot.

Showa Alumi Viewtech, a wholly owned consolidated subsidiary of SDK, has been operating mainly in the area of aluminum extrusions. However, it is facing a difficult business environment as the market for exteriors?its main business?is continuing to dwindle. SDK therefore is planning to sell Showa Alumi Viewtech’s businesses as much as possible and then dissolve the company.

SDK will provide allowances in its financial statements for 2004 in the amount of approximately ¥300 million on a consolidated basis and ¥1,700 million on a non-consolidated basis. These allowances are already reflected on the performance forecast (consolidated/non-consolidated) announced on November 16, 2004. The financial statements for the fiscal year ended December 31, 2004 will be announced on February 9. The dissolution is expected to take place in or around September and the whole liquidation process is scheduled for completion by the end of 2005.

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1. Outline of Showa Alumi Viewtech Co., Ltd.

Head office 2-1, Higashi-Uyeno 6-chome, Taito-ku, Tokyo
President Kohachi Kishi
Scope of business Poles and other urban beautification facilities; exteriors; fabricated aluminum products
Establishment September 1963
Capital ¥227 million
Total assets ¥4,153 million (as at December 31, 2003)
Settlement of accounts end of December
Employees 135 (as at December 31, 2004)
Shareholder Showa Denko K.K. (100%)

2. Performances in the past three years (in millions of yen)

  2001 2002 2003
Net sales 2,671 4,096 5,473
Ordinary income - 313 - 109 - 72
Net income - 266 - 146 - 246

Note: The figures for 2001 cover the nine months from April to December.