September 16, 2004 Mitsubishi Rayon Co., Ltd. Construction to begin on MMA monomer plant in China    Mitsubishi Rayon Co., Ltd. has established a new venture to produce methyl methacrylate (MMA) monomer in Huizhou, Guangdong Province. Construction is due to begin on September 30, 2004, and is scheduled for completion on April 2006. 1. Profile of New Company Name: Huizhou MMA Co., Ltd. Location: The Hiuzhou Daya Bay Economic and Technological Development Zone, Guangdong Province Chairman (non-standing): Ryoichi Yokoyama Lines of business: Manufacture and sale of MMA monomer Established: March 2004 Construction date: Sept. 2004 Completion date: April 2006 (Tentative) Paid-in capital: US$46.1 million (approx. 5 billion JPN Yen) Equity stake: Mitsubishi Rayon 100% Investment: Approx. US$100 million Production capacity: 90,000 tons per year (70,000 tons initially) 2.Background to the New Company’s Establishment    China, which boasted the fastest growing economy in Asia at the end of the 20th century, is rapidly expanding its infrastructure ahead of the 2008 Beijing Olympics and the 2010 Shanghai Expo. This upgrading of its infrastructure is expected to further accelerate growth. In tandem with this growth, MMA demand is shifting toward high-end products, and is expected to remain strong. China’s MMA monomer market, which includes recycled monomers, is currently estimated at 150,000 tons, and is expected to grow continuously at a rapid pace. We expect the market to grow to 230,000 tons by 2008.   Mitsubishi Rayon has not only established a production base in China, with its highly competitive workforce, but is also targeting the country’s vast high-end market. N-Butyl methacrylate(BMA), a higher ester and MMA derivative, has been produced by Suzhou Sanyouli Chemicals Co., Ltd. since in April 1998. We have also established Nantong Rayon Chemical Co., Ltd. in Nandong, Jiangsu Province, to produce acrylic resin. This plant, with a production capacity of 40,000 tons, began operation in December 2003. Nearby, we established Mitsubishi Rayon Polymer Nantong co., Ltd. The plant, which is currently under construction, will have a production capacity of acrylic resin sheets (20,00 tons) and acrylic coating resins (3,500 tons). Operation is scheduled to begin in the second quarter of 2005.    In the MMA business, we believe that our comprehensive business operations give us superior competitiveness. Our MMA business operations encompass both monomers and polymers, which form a complementary system. Following the completion of the scheduled this MMA monomer plant in China, we will have created a unified production system linking our principal production bases in Japan, Thailand, and China. By linking our bases, we aim to establish an overwhelming presence in Asia.    During the current term and before the completion of the new plant in China, our Thai MMA monomer manufacturing and sales company will boost production capacity by 20,000 tons per year. At the end of this year, the Company is scheduled to carry out regular repair work, at which time simultaneous measures will be taken to boost production capacity, bringing total capacity for MMA monomer production in Thailand to 90,000 tons. Conceptual drawing of Hiuzhou Mitsubishi Rayon when completed Inquiries Mitsubishi Rayon Co., Ltd. Public and Investor Relations Office e-mail: koho@mrc.co.jp [PAGE TOP]