In this communication, however, I wish to address the topic of "Corporate Social Responsibility" (CSR), an area that I am confident we all recognize as a critical element of corporate management. Simply stated, CSR refers to the responsibilities to be fulfilled by companies determined to excel as responsible corporate citizens operating within civil society, while maintaining a stance of integrity toward the public in general. The concept of CSR encompasses compliance, consumer protection, preserving the natural environment, supplying places of fair employment, respect for human rights, philanthropy and other important social contributions.

The Polyplastics Group has been active in promoting positive CSR over the years to date, as seen in the establishment of our "Policy for Ethical Conduct" and "Guidelines for Business Activities", the broad-based introduction of these position papers to our employees and the winning of your understanding of the contents. In a very real sense, this Policy and Guideline disclose our fundamental policy for the implementation of CSR.

Among the targets to be achieved in realizing potent CSR, I have persistently stated my belief that "compliance" is the single most critical element of all.

Underscoring this stance is our appointment from this April 1 of Managing Executive Officer Koyu Fujio to the newly established post of Executive Officer for Risk Management and Compliance, in a move geared to further clarify the responsibilities of our top management team in dealing with the compliance issue. I am confident that all Group employees will join with Mr. Fujio in an impressive effort to promote effective compliance and CSR.

In my CEO Message No. 29, I reported on our corporate performance for fiscal year 2003. Within that communication, I mentioned among the list of "Challenges at Hand" the rising costs due to skyrocketing fuel prices, and requested the key assistance of our employees in negotiating product price hikes with customers. In carrying out this challenging work, I urged that special attention be devoted to the matter of compliance.

Upon the revision of market prices, one of the most serious risks consists of potential antitrust law violations. We have carried out antitrust education sessions within our Sales and Marketing Division as one phase of General Administration Department leadership training, a program which I feel has given most of you a detailed understanding of the critical importance of this area. Nevertheless, I would like to use this occasion to briefly review that information, to refresh your memories and awareness of the need for compliance with antitrust legislation.

In somewhat direct statements of what not to do, I wish to request your understanding and support for the following standards of behavior.

(1) Never engage in discussions with competitors regarding prices, sales terms, production volume, cost or similar areas of information.
(2) Never attend meetings with competitors where discussions of such matters will be taking place.
(3) Never join with competitors to deliberately divide up customer markets or sales territories.
(4) Strictly avoid statements, e-mail transmissions, conversations or other information communications or settings prone to arose suspicions on the part of third parties that any of the actions described in (1) through (3) above might be occurring.

I am fully aware of the immense difficulties involved in persuading customers to approve of price hikes. Myself, and all members of the Polyplastics top management team deeply sympathize with the painful position of our marketing personnel, who find themselves sandwiched between the Company's policy and the interests of our customers. Based on this understanding, I want to confirm the following areas with each of you.

(1) The Company soundly rejects any achievements resulting from legal violations, and will deal severely with any and all behavior confirmed to comprise breaches of the law.
(2) The Company supports only legal activities by its employees, and will accept no corporate responsibility for behavior that fails to meet that standard, even if such actions fail to serve the interests of customers and act to undermine the Company's performance.

To conclude this message, it is my profound desire to join with all our wonderful employees in moving forward on the basis of the following awareness of our collective business mission.

For Polyplastics to truly earn the distinction as the leading company in the engineering plastics industry, we must first fulfill our corporate social responsibility and uphold corporate compliance, then work from that solid foundation in charting outstanding business performance.

Thank you for your attention on this vital corporate concern.

Sincerely,

Yasumasa Komura