Press Release

Kraton Announces
Hurricane Impact

HOUSTON, TX – October 6, 2005 - Kraton Polymers LLC (Kraton) announced today an update on the impact on operations resulting from the two hurricanes recently hitting the Gulf Coast.

According to Kraton management:

• Our operations have not been directly affected since our USA manufacturing plant is located in Ohio;
• We are currently anticipating that we will be able to serve customers as planned, with
• Our current inventory levels are sufficient due to our proactive efforts in securing additional raw materials where available;
• We see further tightening of both primary and secondary raw material supply, translating into increased cost proportional to the prevailing markets; and
• Delivery capabilities have been impacted by the current nationwide freight availability issue.

“Our plants are currently producing in line with our supply plan that was developed prior to the recent hurricanes. Outside of tightly constrained isoprene products, we anticipate that we will be able to meet our customer needs” David Bradley, Vice President of Operations said.

The current assessment of management is that these events will have no short term material financial impact to Kraton. However, management can not predict the long-term impact on Kraton, its suppliers or the industry in general.

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.