The business environment surrounding Toray Group is changing dramatically, characterized by a number of factors. These include progress in the information technologies and telecommunications industries, the rise of China and other newly emerging economies along with intensifying international competition, soaring prices of oil and petrochemical raw materials, and growing awareness of corporate social responsibilities. To respond to these changes and grow continuously, Toray Group recognizes that it must step up reforms through dynamic technological innovation as well as persistent reinforcement of competitive strength.

April 2006 marked the 80th anniversary of Toray Group's founding. We took this opportunity to formulate a new long-term corporate vision, entitled "AP (Action Program) -Innovation TORAY 21." It calls for the Group to promote innovations across all of the Group's activities. Under its corporate slogan, "Innovation by Chemistry," the Group aspires to be a global top company of advanced materials.

To help realize this long-term corporate vision, in October 2006 Toray embarked on new mid-term business strategies called "Project Innovation TORAY 2010 (IT-2010)" which calls for "Challenge for further growth through Innovation" through management based on innovation.

We have cited two basic strategies in IT-2010, the first is to transform ourselves into a highly profitable business group and the second is to expand our advanced materials across four major growing business fields. Under these basic strategies, we will target "Innovation" in five areas by around 2010, which are business structure, technologies, competitiveness, business-awareness, and corporate social responsibility (CSR). Along with all our efforts to expand our businesses and profitability, we dedicate ourselves to the CSR including corporate ethics and legal compliances.

Toray will promote management based on innovation by executing IT-2010 and aim to realize our corporate philosophy, "Contributing to society through the creation of new value with innovative ideas, technologies and products," for further enhancement of corporate value.

We ask for your further understanding and support for our operations now and in the future.