For Immediate Release

November 2, 2010

Sumitomo Chemical Reports
Consolidated Financial Results
For the Half-Year Ended September 30, 2010
The Sumitomo Chemical Group’s sales for the half-year ended September 30, 2010
were ¥989.2 billion, an increase of ¥254.0 billion compared with the same period of
the previous year. The Group’s operating income was ¥53.0 billion, ordinary income
was ¥52.1 billion and net income was ¥2.5 billion, all representing year-on-yearincreases. The Group posted an extraordinary loss of ¥28.7 billion from a one-time
amortization of goodwill related to its investment in an affiliate, the fair value of which
has significantly declined.
Sumitomo Chemical decided to pay an interim dividend of ¥3.0 per share.
The Sumitomo Chemical Group’s financial results by business segment for thehalf-year are as follows.
Basic Chemicals
Sales of raw materials for synthetic fibers, such as caprolactam, and methyl
methacrylate expanded because of a rise in market prices and an increase inshipments stemming from a recovery in demand in Asia. Sales of aluminum
increased due to a recovery in demand and higher market prices. As a result, thesegment’s sales expanded by ¥30.4 billion over the same period of the previous year,to ¥124.4 billion, and operating income improved by ¥11.8 billion, to a profit of ¥10.1billion.
Petrochemicals & Plastics
Sales of synthetic resins and petrochemical products increased because of a
substantial increase in shipments by sales subsidiaries due to the full-fledged
contribution of the Rabigh complex, which started operation in April 2009, as well as
higher selling prices in Japan and higher market prices overseas resulting from a risein prices for naphtha and other feedstocks. Consequently, the segment’s sales
increased by ¥106.3 billion over the same period of the previous year, to ¥317.5 billion,and operating income improved by ¥9.4 billion, to a profit of ¥5.8 billion.
Fine Chemicals
Sales of raw materials for adhesives increased due to a recovery in demand and sales
promotion efforts. As a result, the segment’s sales rose by ¥5.5 billion over the same
period of the previous year, to ¥46.3 billion, and operating income improved by ¥1.2billion, to ¥2.0 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, spurred by strong demand in Korea,Taiwan, and China. As a result, the segment’s sales rose by ¥52.3 billion from thesame period of the previous year, to ¥163.9 billion, and operating income improvedby ¥21.3 billion, to a profit of ¥17.1 billion.

Agricultural Chemicals
Shipments of the feed additive methionine and of the long-lasting insecticidal
mosquito net, OLYSET® Net, remained solid. In the area of crop protection chemicals,
shipments of herbicides continued to be solid in overseas markets. Export sales andsales by overseas subsidiaries, however, decreased in yen terms because of theappreciation of the yen. As a result, the segment’s sales declined by ¥0.4 billion fromthe same period of the previous year, to ¥107.9 billion, and operating income
decreased by ¥0.5 billion, to ¥13.9 billion.
Pharmaceuticals
Sales of Amlodin® (therapeutic agent for hypertension and angina pectoris) declined
because of Japanese National Health Insurance drug price revisions. Sales ofAvapro® (therapeutic agent for hypertension), Lonasen® (therapeutic agent forschizophrenia), the new drug Trerief® (therapeutic agent for Parkinson’s disease),and other new pharmaceuticals increased as a result of continued sales promotion
efforts. Sunovion Pharmaceuticals Inc. (the former Sepracor Inc.) and other U.S.
subsidiaries, which became consolidated subsidiaries as of the end of the third
quarter of the previous fiscal year, also contributed to the segment’s performance. As
a result, the segment’s sales rose by ¥61.5 billion from the same period of theprevious year, to ¥180.1 billion. Operating income declined by ¥2.4 billion, to ¥13.7billion, because of amortization expenses of patent rights and other intangible assets
associated with the acquisition of Sunovion Pharmaceuticals Inc.
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 ¥1.6 billion from the same period of the previous year, to ¥49.2billion, but operating income increased by ¥0.4 billion, to ¥1.8 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 half-year ended
September 30, 2010. Along with this, the method for allocating shared company-wide researchexpenses and other expenses has been revised, and the business segment categorization of
consolidated subsidiaries has been changed. For the purpose of comparison, the figures for thehalf-year ended September 30, 2009 have also been adjusted to reflect these accounting changes.

The Company has revised its consolidated full-year financial forecast announced on
July 30, 2010. It now projects sales of ¥1,950.0 billion, representing a 20.3% increaseover the previous year, operating income of ¥72.0 billion, ordinary income of ¥62.0billion, and net income of ¥10.0 billion. This forecast is based on the assumptions ofa foreign exchange rate of ¥80/US$ and a naphtha price of ¥44,000/kl for the half-year
ending March 31, 2011.
For further details, please refer to today's release titled "Sumitomo ChemicalAnnounces Variances between its Financial Forecast and the Actual Results for theHalf-Year Ended September 30, 2010 and Revisions to its Financial Forecast for YearEnding March 31, 2011."

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（\22,5272,515）
Yen1,523（$\3,000$

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
PharmaceuticalsOthers\\Operating (loss) income
Basic Chemicals
Petrochemicals & Plastics
Fine Chemicals
IT-related Chemicals
Agricultural Chemicals
Pharmaceuticals
OthersAdjustments\\7,331(3,485)）*1

18（\36\US$As of September 30, 2010
*1\ Million ）（ US$ 1,000 ）
2,359,217$ 28,146,230
771,564
9,205,011）
Yen
320,144

6 Months ended
September 30，2009（ \ Million ）\735,205
11,172
7,788

268,754
30,005（\(2) Financial Position:
Total assets
Total net asset

6 Months ended
September 30，2010*1\ Million ）（ US$ 1,000 ）989,245$ 11,802,016
53,043632,820
52,107
621,654（$）
US$3,819*1Yen）(2,111)－

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

6 Months ended
September 30，2010*1\ Million ）（ US$ 1,000 ）
74,757$
891,875(93,208)(1,112,002)
49,359588,869
147,772
1,762,968

6 Months ended
September 30，2009（ \ Million ）\57,690(43,774)
10,326
112,027

6 Months ended
September 30，2010*1\ Million ）（ US$ 1,000 ）6 Months ended
September 30，2009（ \ Million ）*2

124,402317,454
46,262
163,948
107,903
180,115
49,161
989,245$

10,076
5,763
2,038
17,146
13,935
13,684
1,821(11,420)53,043$$$

1,484,157
3,787,330
551,921
1,955,953
1,287,318
2,148,831
586,506
11,802,016\

120,21068,75424,314
204,557
166,249
163,255
21,725(136,244)
632,820\(Note)*1:U.S. dollar amounts are translated from yen, for convenience only, at the rate of¥83.82= $1 prevailing on September 30, 2010.
*2:unaudited amount having been reclassified according to new segmentation\\

93,978211,160
40,729111,663
108,310
118,591
50,774735,205(1,761)(3,590)825(4,124)
14,421
16,092
1,388(12,079)
11,172