Asahi Kasei (TSE: 3407; ADR: AHKSY) has announced that the Board of Directors on January 31 adopted a resolution for a 1 yen per share increase in the amount planned for the year-end dividend for the current fiscal year, ending March 31, 2007.

Based on the performance forecast for the fiscal year which was announced on October 31, 2006, annual dividends of 11 yen per share were planned. The performance forecast for the fiscal year has now been revised upward, including record-high net income, as shown below. Greater profitability is forecast most notably in chemicals operations, with increased product prices to reflect elevated feedstock costs, and in electronics operations, with strong demand in consumer electronics applications.

As shown following, the year-end dividend which had been planned at 6 yen per share is now planned at 7 yen per share. Together with the 5 yen per share interim dividend, this raises annual dividends for the fiscal year to 12 yen per share.

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                                      Per share (yen)
                            Interim       Year-end         Annual  
                           dividend       dividend       dividends
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FY 2005 (end 3/31/2006)        5              5              10 
Previous plan for FY 2006
 (ending March 31, 2007)       5              6              11 
Revised plan for FY 2006       5              7              12 

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Consolidated performance forecast for FY 2006 (Yen million) 

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                          Net       Operating    Ordinary      Net 
                         sales        profit      profit     income
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Previous forecast      1,612,000     115,000      112,000    64,000 
Revised forecast       1,617,000     125,000      121,000    68,000 
Increase                   5,000      10,000        9,000     4,000 
Percent change              0.3%        8.7%         8.0%      6.3% 
cf. FY 2005 results    1,498,620     108,726      104,166    59,668 

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About Asahi Kasei Corp.

Asahi Kasei provides innovative solutions based in chemistry and materials science to a diverse range of markets including fibers, chemicals, consumer products, housing, construction, electronics, and health care. With consolidated sales of some US$10 billion, it is a Fortune Global 500 enterprise with twenty-five thousand employees and one hundred consolidated subsidiaries. The operating configuration comprises seven core operating companies as autonomous business units specialized in separate business fields. Asahi Kasei Corporation, as the parent company, functions as a holding company for group operations. An Independent Businesses Group provides group services. For more information, please visit www.asahi-kasei.co.jp.

Contact:

Asahi Kasei Corporation 
Corporate Communications 
Phone: +81-3-3507-2060 
Fax: +81-3-3507-2495 

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