The English translation is provided for the information purposes only. If any discrepancy arises
between this translation and the Japanese original, the Japanese original shall prevail.
September 4, 2012

To whom it may concern
Covalent Materials Corporation

Re: Extension of Bondholders Meeting concerning Amendment to the Terms andConditions (Extension of Maturity Date, etc.) of the 1st Series Unsecured Bonds

Today, the board of directors of Covalent Materials Corporation (the “Company”), upon
reexamination of the timing of the bondholders meeting (the “Bondholders Meeting”) to be held inrelation to the 1st Series Unsecured Bonds (with inter-bond pari passu clause) (ISIN code:JP330135A829) (the “Bond”), resolved to cancel the convocation of the Bondholders Meeting
which was originally scheduled for September 12, 2012, as noticed in the “Convocation Notice for
Bondholders Meeting of Covalent Materials Corporation 1st Series Unsecured Bonds (withInter-Bond Pari Passu Clause)”, dated July 31, 2012 on the grounds that, among others, theCompany has received comments from Bondholders that the original schedule did not allow themsufficient time for consideration on the agendum for the Bondholders Meeting.

The Company

currently plans to reschedule the Bondholders Meeting to be held on October 5, 2012, and will
announce once a formal determination is made.
Should there be any change in proposal for the Bondholders Meeting, the Company will announce
any such change once determined. Furthermore, in the case that there is any change in proposal for
the Bondholders Meeting, the conditions for the Purchase Offer for the Bonds in the press release“Re: Offer to Purchase the 1st Series Unsecured Bonds”, dated August 21, 2012 may possibly besubject to change as well.
Assuming that the Bondholders Meeting is rescheduled to be held on October 5, 2012 as currently
planned, submission deadlines for necessary documents will be extended, as set forth in the tablebelow.

As for Bondholders who have already submitted necessary documents to the Company,

the Certification under Article 86 (the document certifying matters set forth in each of the Items ofArticle 68, Paragraph 3 of the Act on Book-Entry Transfer of Company Bonds, Shares, etc. delivered by an
immediate account management institution or book-entry institution under Article 86, Paragraph 3 of theaforementioned Act) and the documents submitted by the bondholders on the presentation procedure of1

Certification under Article 86 shall continue to be held temporarily by the Company until the end of

the Bondholders Meeting on October 5, 2012 unless otherwise requested by relevant bondholders.
If Bondholders so request, these documents will be returned to Bondholders. Please contact theCompany at the contact detail below for any such requests.
As for the “Diverse Exercise of Voting Rights (Notice)” and the “Voting Form” that have alreadybeen submitted, the Company will promptly make arrangements for returning these documents.
For Reference: procedures regarding the rescheduled Bondholders Meeting, assuming therescheduled date of the meeting to be October 5, 2012
Procedure

Issuance procedure of Certification
under Article 86

Presentation of Certification underArticle 86

Diverse exercise of voting rights

Exercise of voting rights in writing(send voting form to convener)

Attendance to the bondholders
meeting and exercise of votingrights

Schedule
Please take theprocedures in orderto present
Certification underArticle 86 by thepresentation
deadline set forthbelow.
~September 27th~October 1st~October 4th

October 5thRemarks
Please take the procedures in accordance with
(1) below.

Please take the procedures in accordance with
(2) below. The Company will send the newformat of the Request for Issuance of Receipt.
Please submit the document titled “Diverse
Exercise of Voting Rights (Notice)” The
Company will send the new format of thenotice. Please contact the company in order toprovide a reason for the diverse exercise of
voting rights in advance, in accordance with
(3) below.
Please take the procedures in accordance with
(4)(A) below. The Company will send thenew format of the voting form. Please notethat when exercising the voting rights,
Certification under Article 86 needs to besubmitted.
Please take the procedures in accordance with(4)(B) below. The Company will send the newformat of the voting form.

The Company would like to express its most sincere apologies for the inconvenience due to therescheduling of the Bondholders Meeting.

The Company is currently in ongoing negotiations

with financial institutions while implementing various measures in order to establish financial
stability, increased profitability and continuous growth. The Company would like to express its
most sincere apologies again for the inconvenience it has caused its bondholders, and isincreasingly committed to drastic revitalization. Lastly, the Company greatly appreciates thecontinued support it has received from its Bondholders.
2*For inquiries regarding the bondholders meeting:Accounting & Finance, Finance Group,Covalent Materials Corporation
For English communication, please contact us at the E-mail address below.
(E-mail: IR-contact@covalent.co.jp

Mobile: +81-70-6526-8230)###(1) Issuance procedure of Certification under Article 86In order for the bondholders who hold book-entry company bonds to exercise their voting rights, it isnecessary to present Certification under Article 86 to the convener (Note: if the bondholders havealready done this issuance procedure and will not return Certification under Article 86 to the relevant
immediate account management institution or book-entry institution and hold by themselves or have
the Company hold until the Bondholders Meeting on October 5, 2012, they are not required to take thisprocedure again):(i)Documents to be submitted
Request for Issuance of Certification under Article 86(ii) Place of submission
Relevant immediate account management institution or book-entry institution(iii) Deadline of submission
Upon considering the presentation deadline of Certification under Article 86 set forth in (2)below, please take the procedure promptly.

3(2) Presentation procedure of Certification under Article 86 (Note: if the bondholders have alreadysubmitted the Certification under Article 86 and make no request to return, they are not required to takethis procedure again)(i)Documents to be submitted(a) Certification under Article 86(b) Request for Issuance of Receipt (with registered seal)(c) Certificate of Registered Seal Impression(ii) Place of submission
6-3, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
Accounting & Finance, Finance Group,
Covalent Materials Corporation
TEL+81-3-5437-8405

E-mailIR-contact@covalent.co.jp(iii) Deadline of submission
No later than September 27, 2012 (Thursday) (Tokyo time)(Note 1)After the submission of Certification under Article 86, “receipt” will be sent byCovalent Materials Corporation.

(Note 2)

During the period when Certification under Article 86 is submitted, you may nottransfer, pledge, or make other disposal of the bonds.

4(3) Submission procedure of Diverse Exercise of Voting Rights (Notice)
S(i)ubmission procedure
Diverse Exercise of Voting Rights (Notice)です。
】
Documents
to beofsubmitted(a) Diverse Exercise of Voting Rights (Notice) (The Company will send the new format.)(ii) Place of submission
6-3, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
Accounting & Finance, Finance Group,
Covalent Materials Corporation
TEL+81-3-5437-8405

E-mailIR-contact@covalent.co.jp(iii) Deadline of submission
No later than October 1, 2012 (Monday) (Tokyo time)(Note) Please contact the company in order to provide a reason for the diverse exercise ofvoting rights in advance.

5(4) Procedure of Exercising Voting Rights(A) Exercising voting rights in written form submitted in advance(i)Documents to be submitted(a) Voting form (with registered seal) (The Company will send the new format.)(b) Original copy of receipt(ii) Place of submission
6-3, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032, Japan
Accounting & Finance, Finance Group,Covalent Materials CorporationTEL+81-3-5437-8405

E-mailIR-contact@covalent.co.jp(iii) Deadline of submission
No later than 5:00 PM (Tokyo time) on October 4, 2012 (Thursday)(iv) Procedure to return Certification under Article 86
The Company will send Certification under Article 86 by mail on or after the day
following the Bondholders Meeting.

(B) Exercising voting rights by attending Bondholders Meeting(i)Documents to be submitted if the bondholder attends the meeting in person(a) Voting form (with registered seal) (The Company will send the new format.)(b) Original copy of receipt(c) Identity verification documents of the bondholder(ii) Documents to bring if proxy attends the meeting(a) Voting form (with registered seal)(b) Original copy of receipt(c) Proxy(d) Identity verification documents of the proxy(iii) Procedure to return Certification under Article 86
Certification under Article 86 will be returned in exchange for the entrance tag given inexchange for receipt on the reception on the day after the end of the bondholders meeting. IfCertification under Article 86 may not be returned as above, Certification under Article 86
will be sent by mail by the Company on or after the day immediately following the date of
the Bondholders Meeting to the “Contact address” on the Request for Issuance of Receipt.
(Note) Please present the voting form when attending the bondholders meeting.

6