ZEON Corporation (President & CEO: Naozumi Furukawa) held a ceremony on May 26, 2006, to celebrate the completion of its new R&D Building No. 10 on the site of its R&D Center in Kawasaki, Kanagawa Prefecture. The building is a part of our efforts to strengthen research and development of ZEON's unique technologies toward creating next-generation businesses to drive corporate expansion. Through this project, which was subsidized by Kanagawa Prefecture under its "Invest Kanagawa" program, ZEON intends to fortify a base from which leading technologies can be transmitted to the world.

ZEON has been promoting new businesses by developing and marketing such products as ZEONEX^® and ZEONOR^® specialty plastics, precision molded LCD optical films and diffusion plates and advanced low-k ZEOMAC^® semiconductor materials, while also enhancing facilities for research and development to create next-generation businesses. The expansion and advances in ZEON's fields of research and development gave rise to the need for new research facilities, and construction of the new R&D Building No. 10 was launched in March 2005.

ZEON will utilize the new R&D Building No. 10 to pursue research and development in the five business areas which have been designated as next-generation businesses, semiconductor materials, recording materials, LCD materials, energy-related materials such as rechargeable batteries, and communications materials. ZEON will also develop an assessment technology as the foundation for developing these materials as well as precision processing technology for new materials.

Along with R&D Building No. 10, a facility management building for total energy control was completed. The building will play an important role in ZEON's uncompromising effort to promote conservation of resources and energy for its continued research and development activities in the Kawasaki area far into the future by centralizing control of all energy and utilities used within the grounds of the R&D Center. Furthermore, work is currently underway to reinforce and upgrade the waste water treatment facility for the Kawasaki Plant adjacent to R&D Building No. 10 and environmental control facilities to protect the atmosphere and other aspects of the environment. The entire project is scheduled for completion in fiscal 2007.

Other completed ZEON projects include the construction of R&D Building No. 9 at the R&D Center as a facility fully equipped with clean rooms, the construction and enhancement of the Precision Optics Laboratory at its Takaoka Plant in Takaoka City, Toyama Prefecture, and the construction of an R&D facility for chemicals development at its Yonezawa Plant in Yonezawa City, Yamagata Prefecture. ZEON believes the construction of the new R&D Building No. 10 completes a solid R&D platform for creating next-generation businesses based on its exclusive world-class technologies.

Overview of the new R&D Building No. 10

	Location	1-2-1 Yako, Kawasaki-ku, Kawasaki-shi, Kanagawa Prefecture
	Total floor area	Building No. 10: approx. 10,100 m2 (8 floors above ground plus PH) New facility management building, etc.: 880 m2 (2 floors above ground; 1 floor underground)