For Immediate Release

July 31, 2006

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2006
Sumitomo Chemical Company, Limited today announced that its consolidated net sales for the threemonths ended June 30, 2006 totaled ¥412.3 billion ($3,578 million), a 22.7% increase over the same
period last year. Net income decreased 6.0% to ¥ 20.4 billion ($177 million).
Sales in the Basic Chemicals Segment increased by 21.8% over the same period the previous year, to¥69.9 billion. Aluminum sales increased considerably as market conditions improved. Sales of methyl
methacrylate (MMA) were boosted by the recent capacity expansion at our production facilities inSingapore. Sales in the Petrochemical & Plastics Segment increased by 9.3% over the same period
last year to ¥125.2 billion. Sales of synthetic resins remained firm both in Japan and overseas.
Styrene monomer and other petrochemicals showed increased sales, reflecting rising prices fornaphtha and other feedstocks. Sales in the Fine Chemicals Segment rose by 17.9% compared with thecorresponding period last year to ¥22.1 billion. Robust sales of adhesives raw materials andpharmaceutical chemicals helped enhance the segment’s total sales. Sales in the IT-related Chemicals
Segment increased by 34.5% over the same period the previous year to ¥63.8 billion. Polarizing film, amaterial used in liquid crystal displays (LCDs), saw sales growth from production capacity
expansions, mainly at our plant in Korea. Sales in the Agricultural Chemicals Segment increased by
11.8% over the same period last year to ¥44.7 billion. The segment’s improved sales are attributable tohealthy sales of herbicides in the North American market, and sales promotion activities helped
increase sales of feed additives. Shipments of Olyset® Nets rose as a result of production capacity
expansion. Sales in the Pharmaceuticals Segment increased by 27.1% over the same period theprevious year to ¥58.8 billion. Dainippon Sumitomo Pharma, formed by the merger of Sumitomo
Pharmaceuticals and Dainippon Pharmaceutical in October 2005, showed increased sales owing tothe strong performance of their four major products, Amlodin (a therapeutic agent for hypertension
and angina), Gasmotin (gastroprokinetic), Meropen (carbapenem antibiotic) and Prorenal(vasodilator) as well as the effect of the merger. Increased shipments of these products contributed
to the improved overall performance of the new company, in spite of National Health Insurance pricereductions implemented in April of this year. Sales in the Others Segment rose by 137.3% comparedwith the corresponding period last year to ¥27.8 billion.
Total operating income increased by 14.4% over the same period the previous year to ¥34.0 billion.
Operating income declined by 12.6% to 2.7 billion in Basic Chemicals and by 37.4% to 3.6 billion in
Petrochemicals & Plastics, because of the impact of a rise in raw material costs and other factors.
Operating income in the IT-related Chemicals Segment was ¥3.7 billion, remaining at the same level as
the previous year because of a decrease in selling prices. On the other hand, operating income inAgricultural Chemicals improved by 97.9% to 4.6 billion, and for Pharmaceuticals by 27.3% to 15.3
billion thanks to an increase in shipments.
Net income decreased by 6.0% to ¥20.4 billion as a result of a decrease in equity in the earnings ofaffiliates and an increase in special losses due to restructuring charges.

(Note) *U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥115.24= $1 prevailing on June 30, 2006.

(Cautionary Statement)
Statements made in this release with respect to the Company’s current plans, estimates, strategies and beliefs
that are not historical facts are forward-looking statements about the future performance of Sumitomo Chemical.
These statements are based on management’s assumptions and beliefs in light of the information currently
available to it, and involve risks and uncertainties. The important factors that could cause actual results to differ
materially from those discussed in the forward-looking statements include, but are not limited to, general
economic conditions in Sumitomo Chemical’s markets; demand for, and competitive pricing pressure on,
Sumitomo Chemical’s products in the marketplace; Sumitomo Chemical’s ability to continue to win acceptancefor its products in these highly competitive markets; and movements of currency exchange rates.

Summary of Consolidated Results(1) Results of operations:

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

Net income per 1,000 shares（\3 Months ended
June 30，2006*\ Million ）（ US$ 1,000 ）
412,301$3,577,759
33,982294,880
40,15920,355（\）
Yen
12,3223 Months ended
June 30，2005（ \ Million ）\336,087
29,706348,481
176,631（$43,32521,664）*

US$107（\Yen）
13,108(2) Financial Position:
As of June 30, 2006
Total Assets
Total Net Assets

Book Value per 1,000 shares（\\ Million ）2,164,966
940,658（\）
Yen
433,285

As of March 31, 2006*（ US$ 1,000 ）$18,787
8,163（\\ Million ）2,178,377
719,760*（\Yen）
435,510（$）
US$3,760(3) Results of Operations by Business Segment:（Net Sales
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
Others\\Operating Income
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
OthersElimination\\3 Months ended
June 30，2006*\ Million ）（ US$ 1,000 ）
69,902
125,155
22,086
63,84444,72158,78627,807412,301
2,718
3,629
3,214
3,734
4,616
15,283728
60
33,982$$$$606,578
1,086,038
191,652554,009
388,068
510,118
241,296
3,577,759
23,586
31,491
27,89032,40240,056132,6196,317
521
294,880

3 Months ended
June 30，2005（ \ Million ）\\\\(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥115.24= $1 prevailing on June 30, 2006.

57,372
114,51118,73947,46140,016
46,26911,719336,087
3,111
5,797
2,475
3,808
2,333
12,009206(33)
29,706