Press Release

Kraton To Double Global Supply Capability
of Polyisoprene Latex

HOUSTON, TX (October 31, 2005) Kraton Polymers LLC (Kraton) today announced that it will be constructing a new 1,500 dry metric ton polyisoprene latex plant at its Paulinia, Brazil facility in response to strong demand from its medical and consumer product customers. The addition of this new plant would give Kraton the global capability to supply nearly 3,000 dry metric tons per annum.

The new plant is expected to be operational in the fourth quarter of 2006 and would also enable Kraton to quickly and cost effectively expand further based upon market needs.

“Kraton is excited to be making a sizeable investment in the growth of the polyisoprene latex business. Kraton polyisoprene latex is a unique synthetic alternative to natural rubber latex for dipped goods and various specialty products. We recognize our customers’ needs to have more material available to meet their customers’ increasing requirements,” said Eli Ben-Shoshan, Vice President – Business Development.

George Gregory, Chief Executive Officer and President added, “This expansion in capacity further strengthens our capability to supply our customers around the world and enables us to meet future market-growth opportunities.”

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, and “Giving Innovators their Edge” tagline are trademarks of Kraton Polymers LLC.

Forward Looking Statements

This press release may include “forward-looking statements” which are statements other than statements of historical fact and are often characterized by the use of words such as “believes,” “expects,” “estimates,” “projects,” “may,” “will,” “intends,” “plans” or “anticipates,” or by discussions of strategy, plans or intentions. All forward-looking statements in this presentation are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.