Press Release

Kraton Announces Second Quarter 2007 Results
Total Revenue Increased 3% to $295 million
LTM Adjusted Bank Covenant EBITDA at $114 million
Available Liquidity Remains Strong at $132 million

HOUSTON, TX. – August 9, 2007 – Kraton Polymers LLC (Kraton), a leading global engineered polymer company, announces its financial results for the quarter and six months ended June 30, 2007.  Total Revenues for the quarter were $295 million compared to $285 million in the comparable period of 2006, an increase of 3%.  This increase was driven by higher sales volumes and higher average prices resulting from strengthening functional currencies.  Through the first six months of 2007, Total Revenues grew 5% to $542 million.

Gross Profit for the quarter decreased 2% to $51 million, as compared to $53 million in the comparable period of 2006 as higher monomer costs offset the benefits of higher revenues.  Gross Profit for the first six months decreased $21 million to $84 million.

EBITDA for the quarter increased 12% to $28 million from $25 million in 2006.  First six months EBITDA declined $17 million to $37 million.

Last Twelve Months (LTM) Adjusted Bank Covenant EBITDA, a measure used to determine compliance with our debt covenants, totaled $114 million, a decrease of $5 million from the period ended March 31, 2007.   A reconciliation of Net Income to EBITDA and Adjusted Bank Covenant EBITDA is attached.

Net Income for the quarter was $6 million, compared with $3 million in the comparable period of 2006.  During the first six months of 2007, Net Loss was $7 million versus a Net Income $10 million for the same period of 2006.

“In the second quarter, we saw further increases in our raw material costs.  We are responding in the short-term by implementing price increases, continuing to push for innovation-led growth, and accelerating our cost-out programs,” said George B. Gregory, President and Chief Executive Officer.  “We are also continuing to make long-term investments in the business to satisfy our commitment of delivering the highest quality products to our customers, bringing them exciting new innovations, and making capacity available for their worldwide growth.”

Other Quarterly Business Developments:

• Increased second quarter total volume by 2%
• Implemented USBC price increases
• Strengthened available liquidity to $132 million at June 30, 2007, an increase of $13 million from December 31, 2006

Kraton has scheduled an investor and analyst conference call for Friday, August 10, 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 “Second 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 August 10th through 5:00 p.m. CT on August 24th.  To hear a telephonic replay of the call, dial (888) 566-0705 or (203) 369-3090 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.