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New Year Message from CEO

SHOWA DENKO K.K.
January 5, 2009

New Year Message

Kyohei Takahashi
President and CEO

Now is the time for a historic turnaround and, at the same time, a good opportunity for us to make a strategic move with deep insight to ensure future prosperity.

The world is now facing a serious economic crisis. It is not a simple downswing of an economic cycle. It should be considered as the time for a fundamental structural change for the coming 50 years, or a “paradigm shift.” To cope with this drastic change in the economic environment, the Showa Denko Group has extended the Passion Project, which was due to expire at the end of 2008, for another two years. We will reestablish our profitability base and try again to achieve the Passion Project goals, thereby meeting the expectations of all stakeholders and contributing to the sound growth of international society. The year 2009 marks the 70th anniversary of Showa Denko. We should always remember the founder Mr. Nobuteru Mori's motto of “perseverance.” Based on this motto, we must overcome all difficulties and speedily carry out various measures to ensure the Group's future growth.

Strengthening technical development for the future

Our Group is unique in that we have a rich stock of organic/inorganic chemical and metal technologies accumulated over many years. Our mission is to fulfill the needs of society through interconnections of these wide-ranging technologies. The progress of globalization is giving many people the benefits of advanced technologies, but also making the environment/resource problems more serious year by year. To help resolve these problems at present and in the future, the Showa Denko Group will step up its efforts to develop and commercialize production technologies and materials with less impact on the environment.

Reorganization of business portfolio by clarifying the growth/exit strategies

The world economy, so far dominated by the United States, Europe and Japan, will enter a new age of more globalized and “multipolarized” structure with the participation by such emerging economies as China and India. After the end of the simultaneous global recession, we will find rapidly growing emerging markets. Only those companies with strong international competitive power will survive. To strengthen our presence and grow in such a new world, we must now review our business portfolio. Namely, we should identify the fields in which our operations should be either expanded or drastically restructured, and the fields in which we should proceed with exit strategies. By doing so, we will be able to make an effective and strategic move to lay the groundwork for our future prosperity.

For further information, contact:
IR & PR Office (Phone: 81-3-5470-3235)