For Immediate Release

October 30, 2009

Sumitomo Chemical Reports
Consolidated Financial Results
For the Half-Year Ended September 30, 2009
During the half-year ended September 30, 2009, the Japanese economy showed somesigns of recovery, such as a rebound in exports resulting from the economic stimulus
measures implemented at home and abroadin major economies, but capital
investment decreased sharply against the backdrop of weak corporate earnings,
while consumer spending continued to be sluggish amid worsening employmentconditions.
As challenging business conditions continued, the Sumitomo Chemical Group madeall-out efforts to improve business performance by increasing selling prices andexpanding sales volumes, as well as cutting costs substantially through streamlining.
Consequently, the Group’s sales for the half-year ended September 30, 2009 were¥735.2 billion, a decrease of ¥274.0 billion compared with the same period theprevious year, with operating income of ¥11.2 billion, ordinary income of ¥7.8 billion,
and net loss of ¥3.5 billion, all of which were lower than the levels of a year earlier.
Because the financial performance for this half-year was lower than the same period
the previous year, Sumitomo Chemical has decided not to pay an interim dividend.
The Sumitomo Chemical Group’s financial results by business segment for thehalf-year are as follows.
Basic Chemicals
Sales of aluminum and raw materials for synthetic textile fibers declined because of a
sharp drop in market prices caused by a decrease in demand for construction
materials and textile fibers. , as well as a sharp drop in market prices. Sales of methyl
methacrylate contracted due to sluggish shipments in domestic and overseasmarkets. As a result, the segment’s sales fell by ¥60.0 billion compared with the same
period the previous year, to ¥94.0 billion, and operating income decreased by ¥2.6billion, to a loss of ¥3.8 billion.
Petrochemicals & Plastics
Sales of petrochemical products, such as styrene monomer and propylene oxide, fell
because of a steep drop in market prices coupled with declining prices for naphtha
and other feedstocks. Sales of synthetic resins decreased on account of lower selling
prices, as well as a decline and a prolonged recovery in demand from automotive andother customer industries. As a result, the segment’s sales decreased by ¥122.9
billion compared with the same period the previous year, to ¥211.2 billion. Meanwhile,
as a result of better margins for both synthetic resins and petrochemical products
thanks to lower feedstock prices, operating income improved by ¥3.8 billion, to a lossof ¥6.3 billion.
Fine Chemicals
Sales of pharmaceutical chemicals and specialty chemicals contracted because of adrop in shipments and the effects of a stronger yen. Consequently, the segment’ssales decreased by ¥14.3 billion compared with the same period the previous year, to¥32.5 billion, and operating income fell by ¥2.1 billion, to ¥0.1 billion.
IT-related Chemicals
Despite a recovery in demand in Korea, Taiwan and China, sales of polarizing filmand color filters used in liquid crystal displays (LCD) decreased because selling
prices declined compared with the same period the previous year, affected bysoftening market conditions since the end of last year. In addition, owing to theappreciation of the yen, the value of sales of the segment’s foreign subsidiaries
contracted in yen terms. As a result, the segment’s sales fell by ¥50.9 billion, to¥111.7 billion, and operating income dropped by ¥18.0 billion, to a loss of ¥5.7 billion,
compared with the same period the previous year.

Agricultural Chemicals
Shipments of feed additives and Olyset Net, a long-lasting insecticidal mosquito net,remained solid. In the crop protection chemicals business, shipments of herbicides
continued to be strong in overseas markets. Fertilizers sales fell due to a decline inprices as well as a decrease in volumes resulting from the effort to reduce inventories
in the market. In addition, owing to the appreciation of the yen, the value of sales ofthe segment’s foreign subsidiaries decreased in yen terms. Consequently, thesegment’s sales contracted by ¥5.3 billion, to ¥108.3 billion, and operating income
increased by ¥0.5 billion, to ¥12.8 billion, compared with the same period the previousyear.
Pharmaceuticals
Sales of Amlodin (therapeutic agent for hypertension and angina pectoris) decreased
because of the effects from the expiration of its patent. Despite continued efforts toexpand sales of Gasmotin (gastroprokinetic), Meropen (carbapenem antibiotic) andProrenal (vasodilator), as well as Lonasen (agent for the treatment of schizophrenia),
which was launched last year, the segment’s sales decreased by ¥2.1 billion from thesame period the previous year, to ¥118.6 billion. Operating income fell by ¥3.4 billion,to ¥15.8 billion, partly owing to an increase in expenses for the amortization ofactuarial differences for employees’ retirement benefits.
OthersIn addition to the above six segments, the Sumitomo Chemical Group engages insupplying electrical power and steam, providing services for the design, engineeringand construction management of chemical plants, providing transport andwarehousing, and conducting materials and environmental analysis. The Group also
conducts development and sale activities in new business fields, such as polymer
organic light emitting diodes. The segment’s sales contracted by ¥ 18.6 billion fromthe same period the previous year, to ¥ 59.0 billion, and operating income improvedby ¥1.5 billion, to a loss of ¥2.0 billion.
The outlook for the business climate for the Sumitomo Chemical Group remains
uncertain. While the economies of other countries, particularly China and the U.S.,
are on track for a recovery, demand in Japan is lacking in strength to make a solid
recovery and trends in feedstock prices and foreign exchange rates continue to beunpredictable.
Assuming an exchange rate of ¥90/US$ and a naphtha price of ¥43,000/kl for thehalf-year ending March 31, 2010, the Company forecasts that its full-year sales will
decline by 9.4%compared with the previous year, to ¥1,620.0 billion, with operating
income of ¥35.0 billion, ordinary income of ¥20.0 billion, and net income of ¥10.0billion.
The Company’s forecast does not reflect the financial results of Sepracor Inc.,
recently acquired by our consolidated subsidiary Dainippon Sumitomo Pharma.
Goodwill and in-process R&D, etc. arising from the acquisition are undermeasurement at present. When the effects of these items on the Company’s financial
results have been determined, any items requiring disclosure will be announcedpromptly.
Continuing its effort to achieve the forecast levels of financial performance, theCompany plans to pay a year-end dividend of ¥6 per share.

Summary of Consolidated Results(1) Results of Operations:

Net sales
Operating income
Ordinary income
Income before income taxes
and minority interests
Net (loss) income

Net (loss) income per 1,000 shares
Dividends per 1,000 shares:
Interim dividends（\7,331(3,485)（\\(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 by Business Segments:（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
OthersElimination

6 Months ended
September 30，2009*\ Million ）（ US$ 1,000 ）
735,205$
8,149,928
11,172
123,844
7,788
86,332\\）
Yen(2,111)－81,266(38,632)（$）*(23)（\Yen）
3,809－\6,000

US$$22,491
6,288

As of September 30, 2009*\ Million ）（ US$ 1,000 ）2,094,014$ 23,212,659
801,2818,882,397Yen）
340,984

6 Months ended
September 30，2008（ \ Million ）\1,009,207
31,00922,973）
US$3,780（$*

As of March 31, 2009
（ \ Million ）\2,022,553
775,628（\Yen）
329,744

6 Months ended
September 30，2009*\ Million ）（ US$ 1,000 ）
57,690$639,508(43,774)(485,246)
10,326
114,466
112,027
1,241,847

6 Months ended
September 30，2008（ \ Million ）\17,144(105,480)
80,82898,696

6 Months ended
September 30，2009*\ Million ）（ US$ 1,000 ）6 Months ended
September 30，2008（ \ Million ）93,978211,160
32,475
111,663
108,310
118,591
59,028735,205(3,817)(6,347)69(5,680)12,766
15,799(2,042)424
11,172$$

1,041,769
2,340,760
359,993
1,237,812
1,200,643
1,314,610
654,341
8,149,928\(42,312)(70,358)765(62,964)
141,514
175,136(22,636)
4,699
123,844\$$(Note)*U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥90.21= $1 prevailing on September 30, 2009.

\\

153,946
334,056
46,731
162,549
113,612120,679
77,634
1,009,207(1,183)(10,126)
2,173
12,307
12,264
19,240(3,572)(94)
31,009