December 22, 2003 Mitsubishi Rayon Co., Ltd. Notification of Rejection of Recommendation by Fair Trade Commission    On December 11, 2003 Mitsubishi Rayon Co., Ltd. (hereinafter “the Company”) received a Recommendations from the Fair Trade Commission (hereinafter “the FTC”), pursuant to Clause 2, Article 48 of the Law Relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade (Antimonopoly Law), to the effect that, in the view of the FTC, the Company was in violation of the provisions of Article 3 (unreasonable restraint of trade) of the said Law with regard to its PVC resin modifier business.    Subsequent to the receipt of the Recommendations from the FTC, and after meticulous examination of the allegations detailed in the Recommendations, the management of the Company has decided that it is unable to accept FTC’s Recommendations that it was in violation of the Antimonopoly Law. The management has therefore decided to seek a clarification of this matter through the FTC’s quasi-judicial proceedings (“Shinpan”). In line with this, the Company on December 22 officially notified the Fair Trade Commission of its rejection of FTC’s Recommendations.    In its Recommendations, the FTC asserted that the Company was in violation of the provisions of Article 3 of the Antimonopoly Law as a result of an agreement with certain other manufacturers of PVC resin modifier to raise the sales price of the said product, thereby restricting free market competition. While the management of the Company has taken the Recommendations very seriously, it has concluded, after a careful study of the matter, that the FTC’s allegations with regard to the legality of the Company's actions are inconsistent with the Company’s view. On these grounds, the Company cannot accept FTC’s Recommendations, and it has thus decided to seek clarification of the matter and a fair fact-findings and application of the proper law through the quasi-judicial proceeding channels.    The Company, including its subsidiaries and affiliates, has always tackled legal compliance as a top-priority, and has taken the appropriate measures. With a resolution, the managements of all companies in the group intend henceforth to exert even greater efforts to ensure that all group employees are fully aware of the crucial importance of compliance.    We would like to take this opportunity to thank all our shareholders, customers and other stakeholders for their ongoing support and to ask for their understanding and support to our decision at this time. For further information, please contact: Mitsubishi Rayon Co., Ltd. Public & Investor Relations Office: e-mail: koho@mrc.co.jp [PAGE TOP]