Press Release

HOUSTON, Texas – November 29, 2007 – Throughout 2007, Kraton Polymers continued to experience unprecedented cost increases associated with energy, raw material, packaging, and transportation costs which have severely compressed core margins. Therefore, effective January 1, 2008, Kraton Polymers will increase its prices for all polymers and compounds sold globally by 220 USD/MT, or 150 Euro/MT. Kraton will continue to monitor applicable trends to determine if additional pricing actions are warranted.

"We need to restore margins to acceptable levels to allow Kraton to continue to offer the level of service and innovation our customers have come to expect", added Kevin M. Fogarty, executive vice president.

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, Germany, France, The Netherlands, Brazil, and Japan.

Kraton, the Kraton logo and design, and "Giving Innovators their Edge" tagline are trademarks of Kraton Polymers LLC.

This press release includes "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 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.  Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.