SI Group's New Revolutionary RezExtend(TM) Resins Offer New Solution to Polychloroprene Shortage


- White Paper Available at www.RezExtendInfo.com Details How RezExtend(TM) Resins Stretch Polychloroprene Supplies -

SCHENECTADY, NY - March 27, 2007 - SI Group, the leading phenolic resin supplier, today announced that their revolutionary, new system - RezExtend(TM) resins - offer the industry a solution to address the global polychloroprene crisis.

Global polychloroprene supplies continue to shrink and a cloud of uncertainty lingers in the industry because of a major European polychloroprene supplier exiting the market entirely, the primary U.S. supplier announcing plans for a plant shutdown and discontinuation of some grades of rubber.

Polychloroprene is a critical ingredient used in contact adhesives and more than 30 million pounds of polychloroprene rubber is used globally each year in adhesive formulations. Supplies of polychloroprene are being significantly reduced - with some grades of polychloroprene being discontinued altogether. As the costs continue to rise and the polychloroprene shortage turns critical, contact adhesive formulators seek an answer to this crisis. SI Group's forward thinking and timely innovation of RezExtend(TM) resins has provided a revolutionary solution to the polychloroprene challenge.

Making More with Less
SI Group's revolutionary, new system - RezExtend(TM) resins - can extend the supply of standard polychloroprene by as much as 33% and enable manufacturers to produce more adhesive with available rubber. By incorporating RezExtend(TM) resins, polychloroprene inventory can go further and result in a potential total system cost savings.

RezExtend(TM) resins can improve adhesive performance, application, sprayability, open time control, heat resistance and adhesive/cohesive balance. As polychloroprene grades are discontinued, RezExtend(TM) resins can be customized for use in a broad range of applications to provide equal or superior adhesive properties.

"RezExtend(TM) resins offer several outstanding benefits to adhesive formulators," says Jim Lamb, manager of technical services in the Adhesives Performance Resins Division at SI Group. "Our tests conclude that higher than typical resin loads can be used to extend the supply of polychloroprene by as much as 33% without sacrificing performance. RezExtend(TM) resins also can provide contact adhesive formulators with improved high-temperature performance of adhesives on critical applications and increases water resistance to expand external application opportunities."

Stretching Polychloroprene Supplies White Paper Now Available SI Group presented a white paper last fall at the Adhesive and Sealants Council Fall Convention in Nashville, TN, which discussed how RezExtend(TM) resins could augment polychloroprene supplies by 33%, improve adhesive performance and deliver potential cost savings. SI Group's white paper, Stretching Polychloroprene Supplies in Solvent Borne Adhesives is available for download at www.RezExtendInfo.com.

"The global consistent supply of RezExtend(TM) resins provides contact adhesive formulators with the certainty that they are protected against global fluctuations in the availability and cost of polychloroprene and that it will not impact their bottom-line," says Bob Smith, global business manager for Adhesives Performance Resin Division at SI Group. "As a trusted research and development partner, this is one example of how we are committed to meeting our customer's needs and we are pleased to offer a powerful, customizable solution to address the polychloroprene challenge."

More information about SI Group and RezExtend(TM) resins is available at www.RezExtendInfo.com.

About SI Group
SI Group (formerly Schenectady International), is a family-owned company founded in 1906 and headquartered in Schenectady, New York. A leading producer of phenolic resins, chemical intermediates, and emerging in the electronic specialty chemicals market, SI Group is a global chemical manufacturer and has over 20 operations in 13 countries around the world. In 2006, the company celebrated its 100th year in business. For more information about SI Group, visit www.siigroup.com.

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