Press Release

Price Increases for Kraton D Polymers in Europe

LONDON (June 28, 2004) – Kraton Polymers will increase prices of all Kraton D polymers and Kraton IR polymers in Europe during July and August.

“Escalating feedstock costs driven by high oil and naphtha prices have forced up our costs,” said Roger Morgan, Vice President for Europe, Africa and Middle East. “It is not possible for us to absorb the procession of feedstock increments that have been hitting the industry for many months now.

“We must preserve reasonable levels of profitability in the short and longer term. Maintaining the capability to fund our capacity investment plans, which are geared to support our customers’ needs, is vital.”

The Kraton Polymers Group of Companies pioneered the production of styrenic block copolymers in the 1960s and today retains its position as the world’s leading manufacturer and supplier of the technology. Manufacturers and formulators around the world use Kraton polymers in their compounds and applications to add value to their products through improved finish and advanced manufacturing processes. For more information, visit the Kraton Polymers web site at www.Kraton.com or e-mail info@Kraton.com.

About Kraton

Kraton Polymers LLC is a premier, global specialty chemicals company and is the world’s largest producer of styrenic block copolymers (“SBCs”), a family of products whose chemistry was pioneered by Kraton over forty years ago.  SBCs are highly-engineered synthetic elastomers, which enhance the performance of products by delivering a variety of attributes, including greater flexibility, resilience, strength, durability and processability.  Kraton polymers are used in a wide range of applications including road and roofing materials, numerous consumer products (e.g., diapers, tool handles and toothbrushes), tapes, labels, medical applications, packaging, automotive and footwear products.  Kraton has the leading position in nearly all of its core markets and is the only producer of SBCs with global manufacturing capability.  Its production facilities are located in the United States, The Netherlands, Germany, France, Brazil, and Japan.

Polymer Holdings LLC is the parent company of Kraton Polymers LLC and has no material assets other than its investment in Kraton Polymers LLC. 

Kraton, the Kraton logo and design are trademarks of Kraton Polymers LLC.

Forward Looking Statements

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