Songwon Group announces a sound performance for the first half 2009, despite soft and volatile market and economic conditions

Ulsan, Korea – October 15, 2009

* Songwon Group achieves a net profit of 9.5 Billion KRW, despite the continuing difficult market conditions and the volatile economic situation.

* Songwon’s strategy implementation is on track and continues successfully.

* Service, cost competitiveness, product range extension and safety remain priorities.

Key Figures* Six Months ending June 30, 2009		Billion Korean Won	%
Sales Revenue		198.78
EBITDA		20.46	10.30%
Net Profit After Tax		9.5	4.80%

* Unaudited consolidated Songwon Group figures

Songwon Group, a leading global supplier of additives and other chemicals to the plastic industry, announces a net profit of KRW 9.5 Billion for the first half of 2009. This represents a significant improvement vs. 2008 and has been achieved despite weak market conditions.

“We are very pleased with these results, and this is a clear indication that the strategic decisions taken 3 years ago have been effective and that the market and our customers understood and appreciated our approach,” comments Chairman Jongho Park. He adds: “We continue to grow and are achieving our strategic goals even ahead of time, despite the ongoing financial crisis and volatility of the markets around the globe which is affecting real demand and is impacting the key industry segments we are serving. This performance is the result of our seamless efforts and focus on the key components of our strategy.”

Songwon is committed to:

- reduce production costs through process improvements, economy of scale and back-integration; the last step of these actions has been the successful start up of the isobutylene production at the Maeam plant, which is the first commercial application of Songwon’s new and patented technology.

- focus on innovation and introduction of new products with the aim to fulfill all customer needs

- develop geographical coverage and service level: which means not only to anticipate customers’ quality and logistic requirements, but also to provide best in class documentation and regulatory support. In particular Songwon is at the forefront of the Reach implementation.

- Last but not least Songwon continues to put emphasis on the environmental and safety across all of its business and continues to invest in order to improve its performance, which already exceeds industry standards.

Mr. Park concludes: “The achievement of these results is a boost to our determination to strive for excellence in our business. Our goal for the second half of 2009 is to maintain our strategy and continue our focus in order to meet the uncertainties of the market and challenges still to come.”

Reader enquiries

Songwon Industrial Co., Ltd.
Walzmühlestrasse 48
8500 Frauenfeld
Switzerland

+41 52 635 0000

marketing@​songwon.com

www.songwon.com