SDK to Increase Production of High-purity Aluminum Foils for Electrolytic Capacitors.

Tokyo, Japan, Apr 24, 2006 - (JCN Newswire) - Showa Denko  K.K. (SDK) has decided to increase its production of high-purity aluminum foils for electrolytic capacitors used in cars and digital equipment.

Aluminum foils for electrolytic capacitors are produced by rolling aluminum slabs with purity as high as 99.99%. SDK will have its consolidated subsidiary Showa Denko Sakai Aluminum K.K. install a new aluminum refining line, thereby increasing the production of high-purity aluminum slabs from 1,000 tons a month at present to 1,500 tons a month.

The construction will begin in the second half of 2006 for start-up in 2008. With this 1.2 billion Yen investment, SDK will increase the rate of internal procurement of high-purity aluminum slabs from 70% to 80%, and expand its production capacity of high-purity aluminum foils from 1,500 tons a month to 1,800 tons a month.

The new aluminum refining line will ensure increased production of high-voltage, high-purity aluminum foils. Demand for that type is expected to grow substantially, centering on automotive applications.

Due to such advantages as small size and large capacitance, aluminum electrolytic capacitors are also used in a wide variety of electric appliances. In particular, demand is steadily growing for use in mobile phones, flat-panel TVs and HDD recorders. Furthermore, increased car production in Southeast Asian countries and commercial production of hybrid cars are expected to accelerate demand for aluminum electrolytic capacitors.

SDK intends to increase its share of the Japanese capacitor-grade aluminum foil market from estimated 40% to 50% by 2008.

About Showa Denko K.K.

Showa Denko (SDK)(TSE: 4004)(OTC: 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.

Source: JCN http://www.japancorp.net

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