For Immediate Release

July 31, 2007

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2007
During the first quarter, Japan’s economy experienced moderate growth, in spite of the impact of rising
crude oil prices and slow-down in personal consumption, and this growth was buoyed by firm demand
from China and other Asian nations for exports from Japan.
Against this backdrop, the Sumitomo Chemical Group posted first-quarter sales of ¥439.2 billion, anincrease of ¥26.9 billion over the same period the previous year. Operating income was ¥25.6 billion,ordinary income was ¥34.4 billion, and net income was ¥14.8 billion, all of which represent a decrease
compared with the previous year owing to increased raw materials costs as well as increased fixed costs
and other factors. The financial projections for fiscal 2007 announced on May 10, 2007 remain unchanged.
The Company’s first-quarter financial performance by segment is as follows.
Sales in the Basic Chemicals segment increased thanks to improved market conditions both for aluminumand raw materials for synthetic textile fibers such as caprolactam. Sales of methyl methacrylate also saw arise because of higher selling prices in Asia. As a result, sales increased ¥7.3 billion over the previous yearto ¥77.2 billion and operating income increased ¥1.6 billion to ¥4.3 billion.
In the Petrochemicals & Plastics segment, sales of styrene monomer and other petrochemical products
increased on the back of price increases taken in response to the rising prices of feedstocks such as
naphtha. Sales of synthetic resins also increased thanks to higher selling prices in Asia. Sales increased¥18.7 billion over the same period last year to ¥143.9 billion, while operating income decreased by ¥1.3billion to ¥2.3 billion reflecting the effects of rising prices for raw materials.
The Fine Chemicals segment saw sales increases due to marketing drives for active pharmaceuticalingredients and pharmaceutical intermediates. Sales increased ¥1.0 billion year on year to ¥23.1 billion,
while operating income remained flat at ¥3.4 billion.
In the IT-related Chemicals segment, sales decreased because of decreasing selling prices in spite ofincreased sales volumes for polarizing film and color filters, main materials for liquid crystal displays(LCDs), driven by a production capacity increase in Korea. Sales decreased ¥2.5 billion year on year to¥61.3 billion and operating income declined by ¥7.8 billion to post a loss of ¥4.1 billion because of
decreased selling prices as well as increased fixed costs accompanying capacity expansions and otherfactors.
In the Agricultural Chemicals segment, feed additives saw an increase in sales owing to increases in selling
prices and increased shipments thanks to active marketing drives. Firm shipments of agrochemicals andhousehold insecticides and a boost from favorable foreign exchange rates thanks to a weak yen resulted in
an increase in overall sales. Sales increased ¥2.4 billion over the same period last year to ¥47.2 billion andoperating income increased by ¥0.8 billion to ¥5.4 billion.
In the Pharmaceuticals segment, sales of Dainippon Sumitomo Pharma’s four main products, Amlodin(therapeutic agent for hypertension and angina), Meropen (carbapenem antibiotic), Gasmotin(gastroprokinetic), and Prorenal (vasodilator) remained firm, while sales of other products along withrevenue from licensing of intellectual property rights decreased. Sales decreased ¥0.4 billion year on yearto ¥58.4 billion, and operating income decreased by ¥1.3 billion to ¥13.9 billion.
In the Others segment, which includes electrical power and steam supply, chemical plant engineering
services, cargo transportation and warehousing services, and a broad range of analytical andenvironmental research services, sales increased ¥0.3 billion over the previous year to ¥28.1 billion, while
operating income declined ¥0.3 billion to ¥0.4 billion.
As a result, net income decreased by ¥5.6 billion to ¥14.8 billion mainly owing to the decrease in operating
income.
(Note) *U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥123.26= $1 prevailing on June 30, 2007.
(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’sassumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties. The important factors thatcould 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’sproducts in the marketplace; Sumitomo Chemical’s ability to continue to win acceptance for its products in these highly competitivemarkets; 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（\34,685
14,776（\(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 30，2007*\ Million ）（ US$ 1,000 ）
439,222$3,563,378
25,634
207,967\\Yen）
8,947

281,397
119,877（$40,15920,355*）

US$73

As of June 30, 2007*\ Million ）（ US$ 1,000 ）
2,338,640$ 18,973,227
1,037,140
8,414,246
Yen）
483,435

3 Months ended
June 30，2006（ \ Million ）\412,301
33,982（$*）
US$3,922（\Yen）12,322

As of March 31, 2007
（ \ Million ）\2,324,906
1,030,521（\Yen）
479,872

3 Months ended
June 30，2007*\ Million ）（ US$ 1,000 ）
19,073$
154,738(62,526)(507,269)
14,784
119,942
97,811
793,534

3 Months ended
June 30，2006（ \ Million ）\-3 Months ended
June 30，2007*\ Million ）（ US$ 1,000 ）3 Months ended
June 30，2006（ \ Million ）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$$$$(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥123.26= $1 prevailing on June 30, 2007.

-

626,708
1,167,143
187,449
497,315
382,655
473,779
228,330
3,563,378\

34,813
18,79827,211(33,012)43,850113,094
3,399(187)
207,967\\\

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