For Immediate Release

July 31, 2008

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2008
During the first quarter ended June 30, 2008, Japan’s economy remained at a standstill,as corporate profit growth and capital investment slowed down against the backdrop ofincreasing prices for raw materials and concerns about a possible recession in theUnited States.
Under these circumstances, the Sumitomo Chemical Group posted sales of ¥496.3
billion for the first quarter, an increase of ¥57.1 billion over the same period the previousyear. Operating income was ¥24.7 billion and ordinary income was ¥25.3 billion, both ofwhich represent a decrease compared with the previous year. Net income was ¥15.1billion, about the same level as last year.
The Company’s first-quarter financial performance by segment is as follows.
In the Basic Chemicals segment, sales of aluminum declined mainly because of lower
selling prices due to a stronger yen, although overseas market prices were higher.
While market prices rose with an increase in feedstock prices, sales of caprolactam andother raw materials for synthetic fibers remained at the same level as the corresponding
period the previous year because of the impact of the stronger yen. As a result, sales
decreased by ¥1.6 billion compared with the previous year to ¥75.7 billion. Operating
income decreased by ¥2.7 billion to ¥1.6 billion, affected by higher feedstock prices.
In the Petrochemicals & Plastics segment, sales of synthetic resins and petrochemical
products such as propylene oxide increased because of the Company’s selling priceincreases in Japan that reflected the rising prices for naphtha and other feedstocks, aswell as higher market prices in Asia. As a result, sales increased by ¥21.0 billion overthe same period last year to ¥164.8 billion. However, operating income decreased by¥3.0 billion to post a loss of ¥0.7 billion because the impact of rising feedstock prices
exceeded the effects of rising market prices for products.
In the Fine Chemicals segment, moderate growth in shipments of pharmaceuticalintermediates and adhesives raw materials helped increase sales by ¥1.2 billion overthe same period last year to ¥24.3 billion, while operating income declined by ¥2.1billion to ¥1.3 billion because of the strong yen and rising feedstock prices.
In the IT-related Chemicals segment, sales of LCD display materials such as polarizing
film and color filters increased substantially, supported by production capacity
increases and productivity enhancements that were undertaken to meet the booming
demand. As a result, sales rose by ¥16.5 billion over the same period last year to ¥77.8billion. Operating income increased by ¥11.3 billion to ¥7.2 billion.
In the Agricultural Chemicals segment, sales of agricultural chemicals grew thanks tosolid demand primarily in overseas markets. Sales of feed additives increased becauseof rising selling prices spurred by expanding global demand. Sales of Olyset Nets
posted solid growth. As a result, sales increased by ¥7.1 billion over the same period
the previous year to ¥54.2 billion. Operating income increased by ¥0.4 billion to ¥5.8billion.
In the Pharmaceuticals segment, despite the Japanese government’s revision ofreimbursement prices for pharmaceuticals this year, sales of the segment’s four main
products, Amlodin (thereapeutic agent for hypertension and angina pectoris), Gasmotin(gastroprokinetic), Meropen (carbapenem antibiotic), and Prorenal (vasodilator)
increased, driven by marketing efforts. Also, supported by sales of new products
Lonasen (agent for the treatment of schizophrenia) and Avapro (agent for the treatmentof hypertension), sales grew by ¥4.5 billion over the same period last year to ¥62.9billion. Operating income decreased by ¥2.9 billion to ¥11.0 billion, primarily because ofincreased research and development expenses.

In the Others segment, the Company supplies electrical power and steam as well as
providing services for chemical plant design, engineering and construction
management, transport and warehousing, and materials and environmental analysis.
The Company also conducts development and sales activities in new business fields
such as polymer organic light emitting diodes. Revenues from design, engineering andconstruction management services increased with progress on the Rabigh Project, theCompany’s joint project with Saudi Aramco for the establishment of an integrated
refining and petrochemical complex in Rabigh, Saudi Arabia. As a result, sales rose by¥8.4 billion over the same period last year to ¥36.6 billion. However, operating income
declined by ¥1.9 billion to post a loss of ¥1.5 billion because of increased research anddevelopment expenses associated with new business development.

Summary of Consolidated Results(1) Results of operations:

Net Sales
Operating Income
Ordinary Income
Income Before Income Taxes
and Minority Interests
Net Income

Net income per 1,000 shares（\26,85815,077（\(2) Financial Position:
Total Assets
Total Net AssetBook Value per 1,000 shares（\（\(3) Cash flows:

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period（\(4) Results of Operations byBusiness Segment:（Net Sales
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
Others\\Operating Income
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
OthersElimination

3 Months ended
June 30，2008*\ Million ）（ US$ 1,000 ）
496,349$4,664,058
24,656
231,686
25,337238,085\\Yen）
9,132

252,377
141,674（$34,68514,776*）

US$86

As of June 30, 2008*\ Million ）（ US$ 1,000 ）
2,311,494$ 21,720,485
968,607
9,101,738Yen）
443,568

3 Months ended
June 30，2007（ \ Million ）\439,222
25,63434,438

（$*）
US$
4,168

（\Yen）
8,947

As of March 31, 2008
（ \ Million ）\2,358,929
1,006,046（\Yen）
465,213

3 Months ended
June 30，2008*\ Million ）（ US$ 1,000 ）
6,325$59,434(38,030)(357,358)
23,886
224,450
98,434924,958

3 Months ended
June 30，2007（ \ Million ）\19,073(62,526)
14,784
97,811

3 Months ended
June 30，2008*\ Million ）（ US$ 1,000 ）3 Months ended
June 30，2007（ \ Million ）75,670164,820
24,33877,82754,23362,90236,559496,349
1,589
(711)
1,253
7,245
5,794
11,019
(1,487)(46)
24,656$$$$(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥106.42= $1 prevailing on June 30, 2008.

711,051
1,548,769
228,698
731,319509,613591,073343,535
4,664,058\14,931(6,681)
11,77468,07954,445103,543(13,973)(432)
231,686\\\

77,248143,862
23,10561,29947,16658,39828,144439,222
4,291
2,317
3,354
(4,069)5,405
13,940419(23)25,634