Songwon Group improves positive results in Q3 following two previous strong quarters in 2009

Ulsan, Korea – January 21, 2010
• Songwon’s Q3 2009 results continued on a positive trend, although the market is yet to show signs of a full recovery and the overall economical situation remains uncertain. Songwon Group achieves a net profit of 8.9 Billion KRW for Q3 2009 and of 22.4 Billion KRW for the first 9 months of 2009.
• Songwon established its local presence in the Middle East as part of its focus on extending its geographical coverage.
• Service, cost competitiveness, product range extension and safety remain key priorities.

Period July 1 – September 30, 2009 Key Figures*		Billion Korean Won	%
Sales Revenue		110.74
EBITDA		11.73	10.59%
Net Profit After Tax		8.92	8.05%

* Unaudited pro-forma consolidated Songwon Group figures

Key figures*		Nine months ending September 30, 2009 Billion Korean Won	%	Six months ending June 30, 2009 Billion Korean Won	%
Sales revenue		309.52		198.78
EBITDA		32.19	10.40%	20.46	10.30
Net Profit After Tax		22.39	7.23%	13.47**	6.78

* Unaudited pro forma consolidated Songwon Group figures

** Net Profit for the Six months ending June 2009 has been restated to take in account overestimated tax liabilities

Songwon Group, a leading global supplier of additives and other chemicals to the plastic industry, continues to show improvement in results vs. 2008 with a net profit of KRW 8.9 Billion for the third quarter of 2009 and of 22.4 Billion KRW for the first 9 months of 2009.

“This result is extremely satisfying and confirms our belief in the strategy we have in place; to achieve this in the worst economical crisis of the last decade is a true indication of the strength of our business,” commented Chairman Jongho Park. “Our first priority has been to the needs of the customer during these difficult times. With our strong results we have continued to invest in expanding our product offerings and increasing our regional presence. We have been relentless in our commitment to quality; service and regulatory support which is part our everyday life.”

Mr Park continued: “We are going to come out of the global economic crisis much stronger than when it started – which is an extraordinary achievement – and provides us with a good foundation to continue to grow in line with our strategic goals. However, we will remain vigilant in the light of the trends we see such as increasing raw material prices and a weakening US Dollar.”

• The key components of Songwon’s strategy:

• 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.

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

+41 52 635 0000

marketing@​songwon.com

www.songwon.com