News Release

June 29, 2006
Hitachi Chemical Co., Ltd.

Hitachi Chemical Group Has Launched "Green Curtain Project"
—Promoting Employee Participation Activities as Part of National "Team Minus 6%" Campaign—

Hitachi Chemical Group has launched its "Green Curtain Project" which is designed to help reduce emissions of carbon dioxide (CO2) by reducing the use of air conditioners during the summer season. Hitachi Chemical Group is participating in the "Team Minus 6%" campaign, which is a national project for the prevention of global warming. The "Green Curtain Project" is added to the Group's effort in this respect, which also includes adoption of the "Cool Biz" policy across the Group's companies.

Green roofs or vegetated rooftops are widely known to provide an environmental effect which helps people stay comfortable without depending on air conditioners. In recent years, "green curtain" formed by climbing plants covering the wall surfaces and windows of buildings are being more and more recognized as an effective means to block direct sunlight. Offices using the "green curtain" effect can stay cooler and allow the use of air conditioners to be reduced, thereby contributing to a reduction in CO2 emissions. Hitachi Chemical Group conducted an experimental "Green Curtain Project" last year at Namie Hitachi Chemical Co., Ltd. (Head office: Namie-cho, Futaba-gun, Fukushima), which demonstrated that "green curtain" is highly effective, and achieved a significant reduction in electric power consumption by as much as 20 percent over the same term last year. We are now rolling out the "Green Curtain Project" across the Group companies, and expect seven operating units in our Group to implement the project this year.

Hitachi Chemical Group will continue its effort to fully implement the "Green Curtain Project" as part of its employee participation activities. The further updates of the project status will be posted on the website as appropriate at the following address:
http://www.hitachi-chem.co.jp/english/csr/index.html

Hitachi Chemical Group companies implementing the "Green Curtain Project" in fiscal 2006:

(Annex)

Last year's experimental "Green Curtain Project" at Namie Hitachi Chemical Co., Ltd.
"Green curtain" with bitter gourd, sponge cucumber, chayote, etc.

Hitachi Chemical Co., Ltd.: Shimodate Works
Preparatory work in progress for planting "green curtain" plants (Friday, May 12 )