Mitsui Press Releases

	Mitsui Chemicals, Inc. to Build a Recordable Compact Disc Plant in France

Ensisheim, Alsace – February 24, 1997 – Mitsui Chemicals, Inc., a leading manufacturer of recordable CDs (CD-R), announced today it will construct a i,A-R production facility in Ensisheim, in the Alsace region of France. The manufacturing plant is expected to have an annual capacity of 18 million Discs.

Mitsui Chemicals, Inc. was established in 1933 and is headquartered In Tokyo, Japan. Worldwide sales in 1996 were approximately $5 billion. The technology-based chemical company's product portfolio ranges from general-use commodity products to value-added fine chemicals. Specialty products, such as Mitsui Gold CD-Rs, are also a part of Mitsui's core business. The company has ISO 9000 series certification for 12 products, including CD-R, and recently completed construction of a CD-R manufacturing facility in Colorado, U.S.A.

CD-R technology allows users to create their own compact discs easily and inexpensively. Up to 650 MB of information can be stored on one Disc. Data is encoded in a light-sensitive dye layer, not stamped in the plastic substrate as on a CD-ROM. In Mitsui Gold CD-Rs, the company's own patented Phthalocyanine dye forms this critical layer, which gives the discs a distinctive gold color. Tests have shown that Phthalocyanine-based Mitsui Gold discs are superior in durability and possess high speed writing compatibility, as well as excellent recording quality. Mitsui Gold CD-R-s are certified for use in all CD writers and readers, and come with a lifetime warranty,

The global market for CD-R media has grown from approximately 20 million discs in 1995, to 70 million in 1996, and to a projected 200 million in 1997. Applications for CD-R include data archiving, data distribution, CD-ROM/CD-Audio prototyping, and microfilm/microfiche replacement.

Mitsui decided to build a CD-R manufacturing plant in Europe for a number of reasons. "Europe is, along with the U.S., the leading market for CD-R, and building here, one year after the start of our American plant, allows us to better serve our customers. Furthermore, it affords us the opportunity to expand our CO-R related businesses as well as to benefit from the technological dynamism of the European market," said Mr. Yasuto Iwai, Executive Vice President of Mitsui Chemicals, Inc.

Alsace was chosen as the plant site for its high technology infrastructure, excellent quality of life, central location and the outstanding support provided by the Alsace Development Agency (A.D.A.) and the Invest in France Network (DATAR/IFN) through their offices in Japan and in France, the Alsace Region, the Council General of Upper Alsace, the Chamber of Commerce of Colmar, the city of Ensisheim, as well as the local industrial Community, in particular the Mining & Chemical Enterprise (EMC).

A new company, Mitsui Advanced Media S.A. (MAM-E), will be incorporated to manage the Ensisheim-based production facility. Currently, Mitsui Chemicals (Deutschland) GmbH personnel are responsible for European sales and marketing of CD-Rs. Ultimately, these responsibilities and personnel will be integrated into MAM-E. To begin operations, MAM-E will hire approximately 120 staff and will expand to 250 employees within 3 years. Total investment for the facility, which will operate 24 hours a day, 7 days a week, will be around $55 million. Construction of the CD-R plant is scheduled to begin in May, 1997 and is expected to be completed within the year. Commercial production is planned for early 1998.

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For Further Information Contact:

Mia Boetius
Mitsui Advanced Media
Phone: 1(914)251-4216
Fax: 1(914)253-0790

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