On March 20, 2007, at approximately 4:25 p.m. (Japan time), an accident that involved an explosion occurred at the cellulose derivatives manufacturing facility of Shin-Etsu Chemical’s Naoetsu Plant (Joetsu City, Niigata Prefecture, General Manager, Naoetsu Plant : Yoshitaka Kiri).

Shin-Etsu Chemical deeply apologizes for the serious trouble and anxieties that this accident has caused.

We have confirmed that 17 employees were injured and are being treated at a hospital. The details concerning the conditions of these individuals are now under investigation. At this time, it appears that some of the injured are in serious condition.

The cause or causes of this explosion are at present unknown. Shin-Etsu Chemical is now working together with the local police and fire departments as they conduct a comprehensive on-site investigations aimed at determining the cause or causes of the accident.

Shin-Etsu Chemical’s first priority in this situation is to take all necessary measures to assist those people who have been injured and aid and comfort their families, as well as to do our best to help the residents of the local community who had to endure such an experience as an emergency evacuation. Cellulose derivatives are water-soluble polymers used as additives in such applications as in construction materials and pharmaceuticals. In addition to its main raw material of pulp, other materials such as methyl chloride and propylene oxide are used as raw materials.