Press Release

Kraton Announces New Styrenic Block Copolymers (SBC)
for Enhanced Flow, Improved Transparency,
and Superior Surface Appearance

HOUSTON, TX – April 5, 2006 - Kraton Polymers LLC (Kraton) announced the availability of two new grades of Kraton G® SBCs for TPE compounding applications. These new grades, G1641 and MD-6917, allow compounders to formulate Kraton G based compounds with higher flow, better transparency, enhanced overmold adhesion, yet retain the same strength and service temperature as compounds made with the industry standard Kraton G1651.

These new grades are the first in a new series of Enhanced Rubber Segment (ERS) Kraton G polymers. These polymers feature a softer rubber segment and a new mix of properties:

• Improved compatibility with polypropylene (PP)
• Enhanced clarity in PP compounds
• Enhanced flow behavior in compounds; high melt flow rate
• Softer compounds, lower Shore A hardness

G1641 and MD-6917 based compounds are best suited for hard-to-mold parts that have long flow path and thin cross sections. They are more transparent than conventional SEBS compounds. Moreover, due to the inherent softer nature of the polymer and resulting compound, these grades can be formulated with lower amounts of extending oil. The resulting compounds can be used for applications that require low extractables such as water or food contact applications and medical devices. As well, because of the excellent flow characteristics, and lower extending oil requirements, G1641 and MD-6917 are good candidates for overmold compounds with various substrates. Finally, Kraton G ERS polymers have higher energy absorption over a wide range of frequencies. When properly formulated, compounds based on these polymers can exhibit lower rebound and better damping than traditional Kraton G based compounds.

Like all compounds made with Kraton G polymers, compounds made with G1641 or MD-6917 will be easy to extrude and mold, can be fully reprocessed, and exhibit brilliant colors. Kraton G compounds also do not require drying before processing. Both polymers are suitable for use in food contact articles and comply with relevant regulations (e.g. FDA) worldwide. They also meet the biological testing requirements under Class VI of the United States Pharmacopoeia (USP).

“Kraton is dedicated to providing its customers with products that out perform conventional SBCs,” Kevin M. Fogarty, Executive Vice President for Kraton, said. “Our compounder customers have asked us to develop a polymer that has similar characteristics as G1651 (low extractables), yet has higher flow, better transparency, and better overmold adhesion. G1641 and MD-6917 fulfill this need. Compounders worldwide have already begun developing many applications using these polymers.”

For more information about these and other Kraton products, please visit our website at www.Kraton.com or e-mail us at info@Kraton.com.

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

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