As the state of the environment, particularly in respect to global warming, is becoming more and more serious, there are increasing concerns in society regarding the depletion of natural resources, shortage of food, health and safety.

These problems are to be solved together as a society. However in consideration of the natural environment and the health of people, it is our responsibility as a corporate member of society to earnestly put forward initiatives for protecting the environment and ensuring health and safety. As a chemical manufacturer, the Company cannot be limited to the scope of providing safe and dependable products; rather, it is essential for the entire supply chain including upstream and downstream to be linked by a common framework for environmental and safety issues. To this end, we have worked hard to harness the knowledge essential for ensuring safety and reliability and proactively taken on strengthening cooperation within the supply chain to construct such a framework that is dependable.

In fiscal 2006, we achieved two environmental targets of the NOF Group ahead of schedule: we lowered the volume of materials sent to landfill, and we improved the percentage of materials that were recycled. In fiscal 2007, we have decided to combine the promotion of waste reduction and recycling as resource conservation activities and commence these activities as the new target of “achieving zero emissions”.

Concerning the NOF Group’s in-house target of halving of the emissions of chemicals specified by the Pollutant Release and Transfer Register (PRTR) Law, we didn’t quite reach our target for fiscal 2006, however, for fiscal 2007, we are continuing these activities and proceeding to the next step of “further halving emissions”.

Looking ahead, the NOF Group aims to continue to be a good corporate citizen by carrying out effective activities, reporting actual achievements and maintaining a dialog with society.

The Environmental Report site of the NOF CORPORATION website that you are now viewing contains the results of our activities of fiscal 2005. We plan to update this information to fiscal 2006 results in November and we invite you to visit again at that time.
June, 2007