Successful Transformation to Business Diversity
Specialty Chemical uplifting Good Results

The Shareholder’s Meeting of Oriental Union Chemical Corporation (OUCC), held on June 12, 2008, has passed a dividend distribution of 2.4 NTD per share, with 2.2 NTD in cash and 0.2 NTD in stock.

OUCC performed well for the year of 2007, with total annual sales revenues of 13,368,722 thousand NTD. The net profits before taxes were 2,331,830 thousand NTD and EPS after taxes, 3.01 NTD, significantly increased from 2006. In addition, with successful completion of Ethanol Amines (EA) #2 plant and Ethylene Carbonate (EC) plant de-bottleneck project in the fourth quarter, both revenues and profits of specialty chemical sector would be expected to be further increased.

Strong market demands, continuing in 2008, have resulted in an increase of 104% in sales revenues to 1.6 billion NTD, and 215% in net earnings to 510 million NTD in the specialty chemical area for the first quarter this year. Overall, the specialty chemical (SC) business has uplifted the corporate 1Q/08 EPS to 0.93 NTD, an increase of 52% from the same period in 2007. That is, the profitability of SC business has improved to about 50% of total company earnings. This has strongly demonstrated that our strategy to transform OUCC from EG as its main product to diversity including EA, EC and other specialty chemicals has been successfully implemented.

Due to recent global food shortages, agriculture-related chemical products have been in robust demand, such as herbicides and pesticides. Di-ethanol amines (DEA), one of OUCC main EA products, can be used to produce Glyphosate, key raw material for making weed killer. OUCC, in fact, has become a major supplier for agriculture industry. With further demands in other SC products in electronic and construction industries, the future for OUCC specialty chemical business is gleaming.

Looking into the future, OUCC is committed to its growth through continuous R&D programs for new product development, especially for those value-added ethylene oxide derivatives (EOD). In addition, OUCC is actively seeking for implementing its planned investment of EA and EOD production facilities in China in quest of market expansion. Furthermore, with currently high oil/energy costs and pressure of reducing carbon dioxide emission, OUCC is also studying the feasibility of renewable energy related investments.

Our planned strategy of diversification began to see its effects. OUCC will continue its current mission to transform to a more diversified and integrated chemical company with objective for sustainable business growth to create and increase overall corporate values for our shareholders, customers and employees.