Shin-Etsu Chemical deeply apologizes for the great trouble and anxieties caused to the people concerned as a result of the explosion and subsequent fire that occurred at its Naoetsu Plant on March 20, 2007

As soon as the accident occurred, Shin-Etsu Chemical established an Accident Countermeasure Headquarters that was put in charge of the company’s efforts to assist the injured persons, assure the safety of local residents and collect and communicate all accident-related information.

On March 23rd, for the purpose of conducting an investigation to determine the cause or causes of accident at the Naoetsu Plant and also to review and reinforce all safety measures, Shin-Etsu Chemical independently set up an Accident Investigation and Safety Measure Committee within the Accident Countermeasures Headquarters which is headed by Senior Managing Director Fumio Akiya, who is in charge of technology-related matters, and Managing Director Kiichi Habata, who is in charge of environmental control and safety. The committee is made up of persons in charge of technology and environment control and safety from each Shin-Etsu Chemical plant and the Head Office. It will conduct an investigation to determine the cause or causes of the accident and review and reinforce safety measures, enlisting the participation of third parties if the circumstances require the expert views of people from outside the company.

Moreover, Shin-Etsu Chemical President and CEO Chihiro Kanagawa instructed all Shin-Etsu Group companies to implement safety inspections, confirm plant safety and make any necessary improvements in the safety situation in all of the Shin-Etsu Group plants, so that Shin-Etsu can never repeat such a kind of accident.

On-site investigations to determine the cause or causes of the explosion by the authorities are continuing today; however, the cause or causes of the accident have not yet been determined.

Among the 17 persons injured in this accident and transferred to hospitals, as of today, eight persons have already been discharged from the hospitals and nine persons currently remain hospitalized and are receiving treatment. We pray for the speedy recovery of those who were injured and we will do our best so that they can have the best treatment possible.

In addition, for Shin-Etsu’s customers and agents, we are posting status reports on the web-site of Shin-Etsu Chemical’s Cellulose & Pharmaceutical Excipients Department. For these reports and other useful information, please visit this Department’s web-site at: http://www.metolose.jp/e/

We will continue to report further details on the situation as soon as more information is ascertained, including information about the cause or causes of the accident.