Press Release

Kraton G Polymer Price Increase

(Houston – October 11, 2004). Kraton Polymers has experienced unprecedented and continuous cost increases associated with energy, raw material, packaging, and transportation costs over the past eighteen months. We have also experienced sustained growth in all of our key markets during the same period.

Therefore, effective November 15, 2004, Kraton Polymers will increase list and off-list pricing of Kraton G polymers by 300 USD/MT (250 Euro/MT, $0.135 per pound) and Kraton G compounds by 200 USD/MT (165 Euro/MT, $0.09 cents per pound).

This pricing initiative is necessary to partially offset these cost increases, and to allow Kraton Polymers to continue to support our customers with innovation, capital investment and service offerings. This price increase will apply to all regions and to all market segments. 

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

This presentation 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.