Press Release

Kraton Announces Capacity Expansions in Europe

HOUSTON, TX (July 24, 2006) Kraton Polymers LLC (Kraton), a leading global performance polymer producer, today announced plans to increase production capability for unhydrogenated styrenic block copolymers (USBCs) at its European plants. This 20 ktpa capacity increase is in response to rising demand from customers in a variety of global markets. Kraton is committed to providing world-class service to its customers, including having the capacity available to meet their future growth needs.

“We continue to generate significant USBC capacity gains through low cost de-bottlenecks. The successful incorporation of Lean Six Sigma techniques into our operations, coupled with our ability to leverage knowledge across our manufacturing facilities around the world has proven to be a powerful combination,” said David Bradley, Kraton's Vice President of Global Operations. The additional capacity is expected to come online by April 2007.

For more information about Kraton 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 (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.

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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