Sumitomo Chemical Announces Revisions to its Financial Estimates
For Full Fiscal Year ending March 31, 2008
Sumitomo Chemical Company, Limited would like to report that it has revised its financial estimates
for the full fiscal year 2007 (ending March 31, 2008) from the estimates announced on December 25thin consideration of the Company’s recent business performance, as outlined below.

１． Revised Consolidated Financial Estimates For Fiscal 2007
(Millions of yen)

Net Sales

OperatingRecurring

IncomeIncomeNet Income

Previous Estimates (A)1,940,000

120,000

125,000

85,000

Revised Estimates (B)1,910,000100,000

95,00065,000

Increase/(Decrease) (B) – (A)△30,000△20,000△30,000△20,000△1.5%△16.7%△24.0%△23.5%

1,790,026

139,623

157,981

93,860Rate ofIncrease/(Decrease) %Results for 2006 Fiscal Year(Ended March, 31, 2007)

２． Revised Non-Consolidated Financial Estimates For Fiscal 2007
(Millions of yen)

Net Sales

OperatingRecurring

IncomeIncomeNet Income

Previous Estimates (A)940,000

32,00050,00036,000

Revised Estimates (B)930,000

15,00032,00025,000

Increase/(Decrease) (B) – (A)△10,000△17,000△18,000△11,000△1.1%△53.1%△36.0%△30.6%

885,557

45,92870,59583,711

Rate ofIncrease/(Decrease) %Results for 2006 Fiscal Year(Ended March, 31, 2007)

３． Reason for the revision
The reasons for the revision in the estimate for non-consolidated operating income are thehigher than forecast costs of naphtha and other feedstocks that continued to rise as well as thesteeply rising value of the Japanese Yen, which have had a negative impact mainly on ourPetrochemicals & Plastics and Basic Chemicals segments. In addition to this, losses on foreign
currency exchange and other factors have led to decreases in ordinary income and net income
compared with the Company s previous estimate, with sales down 1.1%, operating income down
53.1%, recurring income down 36.0%, and net income down 30.6%.
The reasons for the revision in consolidated income, in addition to the revision in non-consolidated
earnings, are decreases in equity in earnings of affiliates from higher raw materials costs, etc., andlosses on foreign currency exchange at our subsidiaries from rapid fluctuations in exchange rates.
Compared with the Company s previous estimate, sales are estimated to be down 1.5%,operating income down 16.7%, recurring income down 24.0%, and operating income down 23.5%.

(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 regarding the future performance of Sumitomo
Chemical. These statements are based on management’s assumptions and beliefs in light of information currently
available, and involve risks and uncertainties. The important factors that could cause actual results to differmaterially 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 acceptance for its
products in these highly competitive markets; and movements of currency exchange rates.