Japan Air Gases Announces Full-scale Operation of New ASU Plant for Waste-plastic Recycling; Signs Long-term Supply Contract with Showa Denko.

Tokyo, Japan, Aug 3, 2006 - (JCN Newswire) - Japan Air Gases Ltd. has signed a long term contract with Showa Denko  K. K. to supply oxygen and nitrogen at Showa Denko's waste plastic recycling plant in Kawasaki and started production from July 2006. The waste-plastic recycling plant is producing raw material gases such as hydrogen from waste plastic, which then are used to produce ammonia.

Under this contract, Japan Air Gases has invested and commissioned a new Air Separation Unit(ASU) manufactured by Air Liquide Japan, which integrates all the latest energy saving technologies, and will achieve significant improvement of power consumption.

With the installation of the new ASU, Showa Denko aims for further improvement in cost efficiency of the recycling plant, by scrapping one of its two proprietary ASUs.

Showa Denko's waste-plastic recycling plant is a "zero-emission" plant that decomposes used plastic from domestic wastes at high temperature using a unique two-stage heating system, and transfers output elements into raw material gases for ammonia production, thus contributing to the preservation of the environment by creating an effective recycling process of waste plastic. With this plant approximately 50% of the main raw materials necessary for Showa Denko's production of ammonia are generated from gases produced by the waste- plastic recycling plant.

"With this new unit supplying the needs of Showa Denko in Kawasaki for recycling waste plastics, we are also very pleased to deepen our long term relation with one of the leading Chemical Companies in Japan," comented Guy SALZGEBER, President & CEO of Japan Air Gases. "Our company aims to bring innovative and cost efficient solutions and technologies to respond to our customers' needs in terms of environment protection and efficiency, making the most of our international global network and long experience in Japan."

About Showa Denko K.K.

Showa Denko K.K. ('SDK') (TSE: 4004; US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods) electronic equipment (hard disks for computers), and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp.

About Japan Air Gases

Japan Air Gases Ltd. was established in January 2003, on the purpose to integrate industrial and medical gas business of Air Liquide Japan Ltd. (established in 1907) and Osaka Sanso Kogyo Ltd. (established in 1934) and operates business activities in Japanese market. Parent companies of Japan Air Gases Ltd. are 2 worldwide leading companies in the industrial and medical gas business, Air Liquide group (France 55%) and BOC group (U.K. 45%). Utilizing parent companies' global technology and experiences, Japan Air Gases Ltd. is able to supply most advanced solutions.

Source: Japan Air Gases

Contact:

Japan Air Gases Ltd.
Shun Toyoyama,
Communication Dept,
TeluF+81-3-3536-2642

Showa Denko K.K.
Junichi Tagaki,
PR&IR Office.
TeluF+81-3-5470-3235

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