Toagosei Co., Ltd. 13 Specialty Chemicals Inorganic Functional Materials In inorganic functional materials, we continued to augment our line-up of inorganic ion-exchanger IXE products for electronic materials applications by launching further environmentally friendly models in the “New IXE Series.” Thanks to their reputation for superior performance, our Novaron series of silver-based antimicrobial agents achieved strong sales in Japan, the US and the EU. Steady sales growth was also realized by the inorganic deodorizer Kesmon, which is used in air-quality improvement agents . mainly for automobile filter and interior use . to eliminate unpleasant odors such as those produced by volatile organic compounds (VOCs) and aldehydes. We aim to achieve further sales growth through the development of new products in such fields as anti-allergen agents and low heat-expansion fillers for use in unleaded glass, thereby entering new market niches in the fields of electronic materials and amenity-application materials. Silicon Materials In the electronic materials field, we recorded growth in sales to manufacturers of semiconductors and LCDs throughout most of 2008, in spite of weakening demand toward the end of the year. Sales of triethoxysilane (TRIES), used as a raw material for silicon oxide film in semiconductor production, were roughly on a par with the previous year. Sales of hexachlorodisilane (HCD), a raw material for silicon nitride films used in semiconductors, posted another sharp increase following an excellent year in 2007 after the material had been adopted by leading electronic device manufacturers. Steady sales of other newly developed products were also seen, thanks to a favorable reception by component manufacturers. We will continue working on the development of new materials for the electronics sector, doing our utmost to meet customer requirements in cutting-edge technological applications. TRIES is a raw material used in forming silicon oxide films in semiconductor / LCD production. Novaron is a high-performance antimicrobial agent employed in the molding of a wide range of plastic products for everyday use. New Materials Development At the New Materials Development Department, we work to accelerate the development of new materials for growth markets . principally electronic devices and amenity goods . by focusing investment of management resources in the development of inorganic functional materials and electronic materials.