Asahi Kasei Corporation

Fibers & Textiles Company
2-6, Dojimahama, 1-chome, Kita-ku
Osaka 530-8205 Japan
Phone +81-(0)6-6347-3600
Fax +81-(0)6-6347-3635

To Asahi Kasei Fibers & Textiles Customers:

August 2003

Re: Transformation to Holding Company Configuration

  As decided and approved at its annual shareholders meeting on June 27, 2003, Asahi Kasei Corporation ("Asahi") will transform its existing division-based corporate and group configuration to that of a holding company and seven constituent corporations together with related subsidiaries and affiliates as of October 1, 2003. In respect to our mutual agreements and transactions, the procedural adjustments outlined in Sections 2 to 4 below will concurrently be necessary, in conformity with the new configuration. It is our hope to better serve all of our customers, partners, and associates under the new configuration. We regret any inconvenience related to these adjustments, and trust in your understanding and consideration.

1.Essentials of transformation

(1)As of October 1, 2003, Asahi will become the holding company and sole shareholder of the seven constituent corporations, to which all of Asahi's core businesses will succeed as shown in this table.

On and before Sept. 30 On and after Oct. 1
  Fibers & Textiles Company*   Asahi Kasei Corporation
  Chemicals & Plastics Company   Asahi Kasei Chemicals Corporation
  Performance Plastics & Compounds Company
  Performance Chemicals Company
  Specialty Products & Systems Company
  Fabricated Home Products Company   Asahi Kasei Life & Living Corporation
  Construction Materials Company   Asahi Kasei Construction Materials Corporation
  Housing Company   Asahi Kasei Homes Corporation
  Electronics Company   Asahi Kasei Electronics Materials & Devices Corporation
  Health Care Company   Asahi Kasei Pharma Corporation

*The term "Company", as used in the names shown in this column, denotes the strategic business units, or "internal companies", of Asahi Kasei Corporation in its present configuration.

(2)As part of this transformation, all business and transactions currently performed by Fibers & Textiles Company (the "Business") of Asahi, including those with your company, will succeed to the new Asahi Kasei Fibers Corporation ("AKFC").The transformation will generally not involve any change in our contact personnel.

(3) Corporate profile of AKFC

Main Businesses Production and sale of chemical fibers etc.
Home Office 2-6, Dojimahama, 1-chome, Kita-ku, Osaka, Japan
President Masaki Sakamoto
Paid-in Capital 3,000 million yen
Total Assets Approx. 89,400 million yen
Employees Approx. 1,500
Shareholder Asahi Kasei Corporation(100%)

2.Contracts and agreements between your company and Asahi

On October 1, AKFC will succeed the Business as party to any and all contracts and agreements made theretofore between your company and the Business, and thus relating to their mutual business and transactions, including without limitation sales agreements, distributorship agreements, license agreements, leasing agreements, and so on, together with all rights and obligations relating thereto or arising therefrom.

Should you have any question concerning these matters, please do not hesitate to contact us at the e-mail address shown in the letterhead.

Truly Yours

Fibers & Textiles Company
Asahi Kasei Corporation