Operations Commence at Expanded EVAL Manufacturing Facilities in the United States

Kuraray Co., Ltd. (TOKYO:3405)("Kuraray" or "the Company") today
announced that its subsidiary EVAL COMPANY OF AMERICA (Texas, U.S.A.)
had successfully completed trial operations for increasing the
production of EVOH, an ethylene vinyl alcohol polymer resin, (which
the Company markets under the trade name "EVAL"), utilizing newly
expanded manufacturing facilities. As a part of its plans to increase
annual EVAL production by 24,000 tons per year, EVAL COMPANY OF
AMERICA has commenced full-fledged production of an additional 12,000
tons, to 35,000 tons, making the facility the world's largest in terms
of annual EVOH production capacity.

Kuraray was the first to develop and commercialize this
high-performance resin, which it launched in 1972. Since then, Kuraray
has forged a leadership position in the market and currently maintains
a 70% global market share. Taking full advantage of EVAL's gas barrier
performance -- the highest of any plastic (approximately 10,000 times
that of ordinary polyethylenes) -- Kuraray has continued to expand its
business, focusing mainly on the resin's use as food packaging
materials. In areas outside the food sector, the use of EVAL has also
expanded in recent years; the resin has proven ideal for use in
automobile fuel tanks due to its ability to positively address the
need for fuel gas effluent control, an area where demand is steadily
increasing, particularly in Japan, Europe and the United States. In
parts of South America and Asia, where chilled food distribution is
yet to be fully developed, EVAL is used as a material for transporting
packaged milk at ambient temperatures. Accordingly, expectations are
high for an upswing in demand in regions outside Japan, Europe and the
United States.

In addition to EVAL COMPANY OF AMERICA, Kuraray's EVAL
manufacturing facilities include its Okayama Plant (Okayama
Prefecture, 10,000 tons per year) and EVAL EUROPE N.V. (Belgium,
24,000 tons per year). This expansion at EVAL COMPANY OF AMERICA has
augmented the Company's tripolar manufacturing structure, which
encompasses Japan, Europe and the United States and currently produces
69,000 tons per year. Moreover, Kuraray plans to boost production
capacity in support of full-fledged operations at expanded facilities
in the United States. Responding to an anticipated surge in EVAL
demand, the Company is working toward increasing its annual production
capacity an additional 12,000 tons by 2008.

-0-
*T
EVAL Production Capacity (Ktons per year)
Prior to After Expansion Target in 2008
Expansion
-------------------------- ---------- --------------- ---------------
EVAL COMPANY OF AMERICA 23 35 47
-------------------------- ---------- --------------- ---------------
Okayama Plant (Japan) 10 10 10
-------------------------- ---------- --------------- ---------------
EVAL EUROPE N.V. (Belgium) 24 24 24
-------------------------- ---------- --------------- ---------------
Total 57 69 81
-------------------------- ---------- --------------- ---------------
*T

At an opening ceremony held in the United States on April 18,
2007, Yasuaki Wakui, president of the Company, commented as follows,
emphasizing the importance environmental awareness in the Group's
operations.

"In the pursuit of our corporate mission, we in the Kuraray Group
are committed to opening new fields of business using pioneering
technology and contributing to an improved natural environment and
quality of life. On this basis, we will endeavor to consistently
enhance our technological capabilities. This state-of-the-art EVAL
manufacturing facility will enable the Company to reduce its emission
of volatile organic compounds."

Looking ahead, Kuraray will continue to promote its EVAL business
as a core activity. Conscious of the global environment, the Company
will develop innovative products and cultivate new markets in an
effort to appropriately address market needs in gas barrier-related
fields. Through these means, Kuraray will secure a leading position in
the global markets in which it operates.

Additional Information

1. Principal Applications and Relative Weights

Food packaging material: 70%

(Mayonnaise, ketchup, tea leaves, fruit and vegetable juices,
fruits, fresh meats, processed meats, etc.)

Non-food packaging materials: 30%

(Automotive fuel tanks, pipes for floor heating systems, vacuum
insulation sheets for refrigerators, etc.)

2. EVAL COMPANY OF AMERICA

Company name: EVAL COMPANY OF AMERICA

Headquarters: Texas, U.S.A.

Production capacity: 35,000 tons per year

President: Nobuya Tomita

Capital: US$4,150,000