This business segment is underpinned by Toray’s strengths, including: (1) global operations with production bases in Japan, the United States, and Europe; (2) vertical development of prepreg, woven and other intermediate materials and composite materials in addition to carbon fibers; (3) a superior lineup of carbon fiber products of the highest quality; (4) a technological competitive edge attributable to the stable quality of its prepreg products; and (5) Toray’s solid position in aircraft applications.

Annual production in the carbon fiber market is expected to reach 48,000 tons in 2010, double the amount for 2005. This huge growth will be attributable to the rapid expansion of aircraft applications, other alternative energy applications including wind turbine blades and CNG (compressed natural gas) tanks in the face of high crude oil prices, and an increase in automotive applications. Toray will continue pursuing capital investment activities to ensure its ability to address such market growth.