Songwon Group announces a positive performance for Q2 2010

Ulsan, Korea – October 6, 2010
• Songwon’s Q2 2010 results continue on a positive trend. Songwon Group achieved a net profit of 7.0 Billion KRW for Q2 2010 and a net profit of 13.3 Billion KRW for the first half of 2010.
• Songwon announced an LOI to acquire a share in one of the major Chinese Thioesters manufactures as part of its Chinese and Global strategy.
• Songwon has announced the introduction of innovative solution for the UV stabilization of PP surface protection.
• Service, cost competitiveness, product range extension and safety remain key priorities.

Key Figures*	Period April 1-June 30, 2010 Billion Korean Won	%
Sales Revenue	139.66
EBITDA	17.38	12%
Net Profit After Tax	7.03	5%

* Unaudited consolidated Songwon Group figures

Key Figures*	Period January 1-March 31, 2010 Billion Korean Won	Period April 1-June 30, 2010 Billion Korean Won	Growth %
Sales Revenue	124.37	139.66	+12%
EBITDA	16.56	17.38	+5%
Net Profit After Tax	6.28	7.03	+12%

* Unaudited consolidated Songwon Group figures

Key Figures*	Six Months ending June 30, 2010 Billion Korean Won	%
Sales Revenue	264.03
EBITDA	33.94	13%
Net Profit After Tax	13.31	5%

* Unaudited consolidated Songwon Group figures

Songwon Group, a leading global supplier of additives and other chemicals to the plastic industry, announces sales revenues of 139.66 Billion KRW and a net profit of KRW 7.03 Billion for the second Quarter of 2010. Compared to the first Quarter 2010, sales were up 12%, driven again by a significant increase of sales volumes and positive mix (+8%) plus a positive price development (+4%). The Net Profit was also up by 12%, in spite of a significant increase in raw material costs, which were only partially offset by the positive price development.

Jongho Park Chairman and CEO of Songwon Industrial Co. LTD stated “We are happy to report a positive result again for Songwon. The results have been achieved despite a continued severe increase in raw material costs, which is not showing signs of a slowing down, and a particularly volatile currency situation.

The businesses are putting in very solid performances, and we continue to grow quarter after quarter. Demand appears to be very strong and we do not see any sign of weakening; we remain vigilant and are monitoring closely the global economic situation. We continue to focus on the key element of our strategy and we are in the process of developing some interesting new solution for specific polymer applications. We are looking with interest to expanding our activities in China and have established a subsidiary in India. We continue to remain fully focused on quality, service and regulatory affairs: in particular our Reach registrations are fully on track. Raw material availability is of some concern (driven by demand and some plant outages) however, we believe that we are well protected by our investments in backward integration and our strong supplier’s base; again we will continue to monitor the situation very closely.”

Songwon Industrial Co., Ltd. is exhibiting at K’ 2010 in Düsseldorf, Germany in Hall 6, Stand C79.

Please join the Songwon press conference, October 29 at 11:00am, CCD South Room 7B.

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Songwon Industrial Co., Ltd.
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+41 52 635 0000

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