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EMS-CHEMIE AG and SDK to Dissolve Nylon Specialty JV

June 21, 2005

EMS-CHEMIE AG of Switzerland and Showa Denko K.K. (SDK) will, as per joint venture agreement, dissolve their joint venture by the end of this month. The 70-30 joint venture, EC-SHOWA DENKO K.K., has been conducting a specialty nylon business in Japan since May 2000.

EMS-CHEMIE AG, the core company of the EMS-Group, is a leading manufacturer of Performance Polymers such as Nylon 12, 6 and 66 as well as a variety of Specialty Nylon including transparent, partially aromatic and hot melt adhesives. Prior to the joint venture, EMS-CHEMIE AG had operated its own company in Japan since 1977.

SDK began its nylon business in 1986. In pursuit of synergies with the specialty nylon business of EMS-CHEMIE AG, SDK transferred its nylon business, including the R&D and market development functions, to the joint venture in 2000. SDK also contributed its goodwill, patent rights and R&D facilities to the joint venture.

With the lapse of the agreed joint venture period of five years, EMS-CHEMIE AG and SDK have agreed to amicably dissolve the joint venture. With the dissolution, SDK will completely withdraw from the specialty nylon business in line with its policy of concentrating its resources on selected business areas.

EC-SHOWA DENKO will become a wholly owned subsidiary of EMS-CHEMIE AG and continue its specialty nylon operations under the new name of EMS-CHEMIE (Japan) Ltd. The company will relocate its Technical Development Center from Kawasaki to Ohta-ku, Tokyo.

[Profile EMS-CHEMIE (Japan) Ltd.]

Head office 4-9-3, Taito, Taito-ku, Tokyo
President Hans-Werner Greif
Capital 300 million JPY
Scope of business Development, production and marketing of Nylon Specialties
Annual sales Approx. 4 billion JPY
Number of employees 20