(1) The status of the cellulose manufacturing facilities
With regard to the cellulose manufacturing facilities of Shin-Etsu’s Naoetsu Plant, all the facilities, except the MC-II plant where the accident occurred, have successively resumed operations since May.
In addition, we are implementing a new plan to strengthen the Plant’s manufacturing facilities for methylcellulose, which is expected to be completed by about October 2008, and when this expansion plan is completed, the Plant’s total production capacity of cellulose is expected to become about 20,000 tons per year.
For more detailed information about the operation status of the cellulose manufacturing facilities, please go to the website of Shin-Etsu Chemical’s Cellulose Pharmaceutical Excipients Department: http://www.metolose.jp/e/

(2) The status of the investigation of the cause(s) of the accident
As a result of its investigation of the cause(s) of the accident, which included the participation of third-party experts, Shin-Etsu surmises that the cause of the explosion was due to powder dust; however, as of this date, the investigations by the authorities to determine the cause(s) of the accident are continuing.

(3) The condition of the injured persons
The 17 persons injured in this accident and transferred to hospital have all been discharged by the end of September. Some of these people are continuing with rehabilitation, and we will continue our efforts to assure that they receive the best care possible.

We will continue to report further details on the situation concerning the accident as they become available.