Press Release

Kraton Polymers LLC Announces 1Q 2007 Results
Total Revenue Increased 8% to $247 million
LTM Bank EBITDA Down 6% to $119 million

HOUSTON, TX. – May 10, 2007 – Kraton Polymers LLC (Kraton), a leading global engineered polymer company, announces its financial results for the quarter and three months ended March 31, 2007. Total Revenues for the quarter were $247 million compared to $229 million in the comparable period of 2006, an increase of 8%. This improvement was driven by increased sales volume and the strengthening of the functional currencies of our foreign operations against the U.S. dollar.

Gross Profit for the quarter decreased $20 million or 38% to $32 million, as compared to $52 million in the comparable period of 2006, primarily due to higher raw material cost and unfavorable manufacturing cost absorption from lower inventory build.

Last Twelve Months (LTM) Bank EBITDA, a measure used to determine compliance with our debt covenants, totaled $119 million, a decrease of $7 million since the year ended 2006. A reconciliation of Net Income to LTM Bank EBITDA is attached. Available liquidity was $123 million at March 31, 2007, an increase of $4 million since the year ended 2006.

"While we enjoyed strong volume growth in the first quarter, we were hurt by decreased margins driven by higher raw material costs. We are currently pursuing price increases to address this situation. We will also continue to create value through the introduction of new product innovations,” said George B. Gregory, President and Chief Executive Officer.

Other Quarterly Business Results:

• Increased first quarter sales volume by 7% versus first quarter 2006.
• Announced a new innovation in our Adhesive, Sealants and Coatings end-use market for SIBS polymer grade for hot melt applications.
• Received FDA approval for SEBS polymer use with foods containing free fats and oils.
• Announced the opening of new Asia distribution center in Shanghai, China.

Kraton has scheduled an investor and analyst conference call for Friday, May 11, 2007 to discuss the results of today's earnings announcement. The call will begin at 10:00 a.m. central time, 11:00 a.m. eastern time. To listen to the conference call and view the slide presentation, which will be broadcast live over the Internet, go to Kraton’s website at www.kraton.com, click on Investor Relations and then go to Presentations and Papers and select “First Quarter 2007 Earnings Presentation Webcast.” You may also listen to the analyst conference call by telephone by contacting the conference call operator 5-10 minutes prior to the scheduled start time and asking for the "Earnings Conference Call". US Dial-In #: (800) 857-1742 or International Dial-In #: (630) 395-0017. For those unable to listen to the live call, a replay will be available 24 hours a day beginning at approximately 6:00 p.m. CT May 11th through 5:00 p.m. CT on May 25th.  To hear a telephonic replay of the call, dial (800) 229-6292 or (402) 220-9682 for international callers. To hear a replay of the call over the Internet, please access Kraton’s website at www.kraton.com.

About Kraton

Kraton is a leading global engineered polymer company and, we believe, the world’s largest producer of styrenic block copolymers (SBCs), a family of products whose chemistry was pioneered by us over forty years ago. SBCs are highly-engineered thermoplastic elastomers, which enhance the performance of numerous 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 adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing, 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.

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

Forward Looking Statements

This press release includes “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are statements that could be deemed forward-looking statements 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.  In this press release, forward-looking information relates to covenant compliance, pricing trends, cost savings, production rates and other similar matters.  All forward-looking statements in this press release 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.  Among these factors are changes in overall economic conditions, the cyclical nature of the chemical industry, changes in demand for our products, changes in inventories at our customers and distributors, technological and product development risks, availability and cost of raw materials, competitors’ actions, pricing and gross margin pressures, loss of key customers, order cancellations or reduced bookings, the timing and cost of planned capital expenditures, changes in manufacturing yields, control of costs and expenses, significant litigation, risks associated with acquisitions and dispositions, risks associated with our substantial leverage and restrictive covenants in our debt agreements, risks associated with our international operations, the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally, risks and costs associated with increased and new regulation of corporate governance and disclosure standards (including pursuant to Section 404 of the Sarbanes-Oxley Act of 2002), and risks involving environmental or other governmental regulation. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.