For Immediate Release

July 30, 2010

Sumitomo Chemical Reports
Consolidated Financial Results
For the Three Months Ended June 30, 2010
The Sumitomo Chemical Group’s sales for the first quarter ended June 30, 2010 were¥491.2 billion, an increase of ¥150.5 billion compared with the same period theprevious year. The Group’s operating income was ¥34.0 billion， ordinary income
was ¥36.0 billion, and net income was ¥18.0 billion, all exceeding levels of the same
period the previous year.
The Sumitomo Chemical Group’s financial results by business segment for the firstquarter are as follows.
Basic Chemicals
Sales of caprolactam and other raw materials for synthetic fibers expanded becauseof an increase in shipments and a rise in market prices stemming from a recovery indemand. Sales of methyl methacrylate rose because of a substantial recovery inoverseas demand. Sales of aluminum increased thanks to higher market prices. As aresult, the segment’s sales expanded by ¥19.9 billion over the same period theprevious year, to ¥62.3 billion, and operating income improved by ¥6.2 billion, torecord a profit of ¥4.1 billion.
Petrochemicals & PlasticsSales of synthetic resins and petrochemical products grew because of a substantial
increase in shipments of sales subsidiaries due to the start of operation of the Rabighcomplex in April 2009, as well as higher selling prices in Japan and higher market
prices in overseas resulting from a sharp rise in prices for naphtha and otherfeedstocks. Consequently, the segment’s sales increased by ¥60.0 billion over thesame period the previous year to ¥156.2 billion, and operating income improved by¥8.2 billion, to a profit of ¥3.6 billion.
Fine Chemicals
Sales of raw materials for adhesives and sales of pharmaceutical chemicals
increased due to a recovery in demand and sales promotion efforts. As a result, thesegment’s sales rose by ¥5.5 billion compared with the same period the previous year,to ¥23.9 billion, and operating income increased by ¥2.0 billion, to ¥1.9 billion.
IT-related Chemicals
Sales of polarizing film and color filters used in liquid crystal displays (LCDs) grew
because of a significant increase in shipments on the back of strong demand inKorea, Taiwan, and China. As a result, the segment’s sales rose by ¥32.1 billion overthe same period the previous year, to ¥78.1 billion, and operating income improvedby ¥10.6 billion, to ¥8.0 billion.

Agricultural Chemicals
In the area of crop protection chemicals, shipments of herbicides continued to bestrong in overseas markets. Although shipments of the feed additive methionine
remained solid, sales fell because of lower market prices. In addition, export sales
decreased in yen terms because of appreciation of the yen. As a result, the segment’ssales declined by ¥1.5 billion compared with the same period the previous year, to¥52.7 billion, and operating income increased by ¥0.6 billion, to ¥6.9 billion.
Pharmaceuticals
Sales of Amlodin (therapeutic agent for hypertension and angina pectoris) declined
because of Japanese National Health Insurance drug price revisions. Sales of Avapro(therapeutic agent for hypertension), Lonasen (therapeutic agent for schizophrenia),
and new drug Trerief (therapeutic agent for Parkinson’s disease) and otherpharmaceuticals increased as a result of continued sales promotion efforts. Sepracor
Inc. and other U.S. subsidiaries, which became consolidated subsidiaries from thefourth quarter of the previous fiscal year also contributed to the segment’sperformance. As a result, the segment’s sales rose by ¥35.5 billion from the same
period the previous year, to ¥94.9 billion, and operating income increased by ¥4.6billion, to ¥14.4 billion.
OthersIn addition to the above six segments, the Sumitomo Chemical Group engages insupplying electrical power and steam, providing services for the design, engineering,and construction management of chemical plants, providing transport andwarehousing, and conducting materials and environmental analysis. The segment’ssales decreased by ¥1.0 billion compared with the same period the previous year, to¥23.1 billion, and operating income remained unchanged at ¥0.1 billion.
(Note) Changes in the operating income calculation and business classification methods
The Company has been applying the Accounting Standard for Disclosures about Segments of anEnterprise and Related information (ASBJ statement No. 17 of March 27, 2009) and theImplementation Guidance on Accounting Standard for Disclosures about Segments of an Enterpriseand Related information (ASBJ Guidance No. 20 of March 31, 2010) from the three months ended
June 30, 2010. Along with this, the method for allocating common company-wide researchexpenses and other expenses has been revised, and the business segment categorization of aconsolidated subsidiary has been changed. The figures for three months ended June 30, 2009 havealso been rearranged to match these changes for comparison.

Performance for the three months ended June 30, 2010 exceeded previous
expectations, and performance for the nine months ending March 31, 2011 is also
expected to exceed previous expectations thanks to better margins in BasicChemicals and stronger shipments in IT-related Chemicals. As a result, the Company
has increased its consolidated financial forecasts for the half-year ending September
30, 2010 to operating income of ¥50.0 billion, ordinary income of ¥50.0 billion and net
income of ¥30.0 billion, and for the full-year ending March 31, 2011, to operating
income of ¥70.0 billion, ordinary income of ¥68.0 billion and net income of ¥45.0billion.

Summary of Consolidated Results(1) Results of Operations:Net sales
Operating income
Ordinary income
Income before income taxes
and minority interestsNet (loss) income

Net income per 1,000 shares（\35,67617,971（\(2) Financial Position:
Total assets
Total net asset

Book 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 (loss) income
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
OthersAdjustments

3 Months ended
June 30，2010*1\ Million ）（ US$ 1,000 ）$491,243
5,552,023
34,042384,742
36,004
406,917\\Yen）
10,885403,210203,108（$3,009(1,508)*1）

US$123As of June 30, 2010
*1\ Million ）（ US$ 1,000 ）$ 27,603,797
2,442,384
829,873
9,379,216
Yen）
351,350

3 Months ended
June 30，2009（ \ Million ）\340,771
2,303
3,205

*1）
US$3,971（$（\Yen）(913)

As of March 31, 2010
（ \ Million ）\2,383,906
821,436（\Yen）
348,525

3 Months ended
June 30，2010*1\ Million ）（ US$ 1,000 ）$28,137
318,004(70,379)(795,423)
55,387625,983
134,399
1,518,976

3 Months ended
June 30，2009（ \ Million ）\(3,995)(13,954)
21,95591,5443 Months ended
June 30，2010*1\ Million ）（ US$ 1,000 ）3 Months ended
June 30，2009（ \ Million ）*2

62,343
156,153
23,94478,06552,703
94,901
23,134491,243
4,057
3,601
1,905
8,0036,868
14,37958(4,829)34,042$$

704,600
1,764,840
270,615882,290595,649
1,072,570
261,460
5,552,023\45,852
40,69821,53090,45077,622
162,511656(54,577)
384,742\$$(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥88.48= $1 prevailing on June 30, 2010.
*2:unaudited amount having been reclassified according to new segmentation\\

42,437
96,137
18,42845,98654,234
59,411
24,138
340,771(2,126)(4,638)(77)(2,631)
6,2949,787
84(4,390)2,303