September 7, 1998

TOAGOSEI TO EXPAND ITS ADHESIVE BUSINESS
Acquired adhesive manufacturer, ACI Japan Limited

Toagosei Co., Ltd. of Tokyo, Japan announces that it has acquired all of the outstanding stocks of ACI Japan Limited of Tokyo, Japan. On September 4, 1998, the company became a wholly owned subsidiary of Toagosei Co., Ltd. and was renamed "Aron Ever-Grip Limited.

Toagosei Co. Ltd. is a manufacturer of variety of chemicals and adhesives. Toagosei's most popular brand of adhesive in the USA is "Krazy Glue", which is marketed by Elmer's Products, Inc. of Columbus, Ohio. The adhesive business is one of Toagosei Co.'s core businesses which is focused for further expansion through acquisitions.

ACI Japan is a manufacturer and seller of various industrial adhesives, including among others, hot melt, CR base, and poly-urethane adhesives. The acquisition of ACI Japan's adhesive lines is intended to bolster the Toagosei's position as the high function adhesive manufacturer in the industrial markets in the world.

The General Manager, Specialty Chemicals of Toagosei Co., Ltd. concurrently assumes the position of the President of the new company. This will enable him to manage and operate the adhesive business of both companies using the same policy and strategy. With this acquisition, Toagosei aims at attaining the annual sales in the adhesives as much as ¥20,000 million ($140 million) on a combined basis over three years.