May 24,2006

Sumitomo Chemical Announces New Investment in its French Agricultural
Chemicals Affiliate by Nihon Nohyaku

Sumitomo Chemical and Nihon Nohyaku Co., Ltd., a Japan-based agriculturalchemicals company, have entered into an agreement whereby Nihon Nohyaku will
acquire a 10% share of Sumitomo Chemical’s French affiliate, Philagro Holding S.A.
Philagro Holding is the sole shareholder of Philagro France S.A.S., a well establishedcrop protection product distributor in France. Philagro Holding is jointly owned bySumitomo Chemical and Nissan Chemical Industries, Ltd.

After completion of theshare transfer, Sumitomo Chemical will own 60% of Philagro Holding, and Nissan
Chemical and Nihon Nohyaku will own a 30% and 10% share, respectively.
Philagro France has an extensive sales network for the promotion of crop protection
products in France. In addition, it operates a successful crop protection evaluation anddevelopment facility in the Loire Valley. Since its establishment in 1993, Philagro hassignificantly expanded sales of Sumitomo Chemical’s and Nissan Chemical’s crop
protection products in France through its sales network and evaluation anddevelopment facility. Philagro France already distributes flutolanil, Nihon Nohyaku’s
proprietary fungicide. Through a closer relationship with Nihon Nohyaku, Philagro will
enhance its product portfolio and strengthen its business operations currently
established on its partnership with Sumitomo Chemical and Nissan Chemical.
Agricultural chemicals is one of Sumitomo Chemical’s core businesses, and Sumitomo
Chemical is confident that Nihon Nohyaku’s closer relationship with Philagro Holding
and Philagro France will accelerate the expansion of this business in France, which isone of the world’s leading markets for crop protection products. Sumitomo Chemical will
work with Nissan Chemical and Nihon Nohyaku to expand the business and enhance
the performance of both Philagro Holding and Philagro France.
Philagro Holding
Company Name:

Philagro Holding S.A.

Chairman:

Mr. Yoshihiko Okamoto

Founded:

1993

Head Office:Saint-Didier-au-Mont-d’Or, France (suburb of Lyon, France)

Capital:6,100,000 Euro

Major Business Field:

Holding Company of Philagro France S.A.S.

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Philagro France
Company Name:

Philagro France S.A.S.

General Manager:

Mr. Jean-Yves Ravinet

Founded:

1993

Head Office:Saint-Didier-au-Mont-d’Or, France (suburb of Lyon, France)

Capital:

9,912,500 Euro

Major Business Field:

Crop protection product distribution in France

2005 Sales amount:

61 Million Euro

Number of Employees:

66

Nihon Nohyaku
Company Name:

Nihon Nohyaku Co., Ltd.

President:

Mr. Shukichi Ohuchi

Founded:

1928

Head Office:Chuo-ku, Tokyo, Japan

Capital:10,939 Million Yen

Major Business Field:

Agrochemicals (Agriculture/Professional Turf/Home & Garden)
Wood Preservative
Fine Chemicals
Pharmaceuticals & Veterinary Products

2005 Sales amount:

35,354 Million Yen

Number of Employees:

About 400

Nissan Chemical
Company Name:

Nissan Chemical Industry, Ltd.

President:

Mr. Nobuichiro Fujimoto

Founded:

1887

Head Office:Chiyoda-ku, Tokyo, Japan

Capital:18,942 Million Yen

Major Business Field:

Chemicals, Agricultural chemicals and Pharmaceuticals

2005 Sales amount:

169,149 Million Yen

Number of Employees:

About 1,500

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