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DC Statement on Columbian Sale

On Friday, January 2, DC Chemical issued the following statement regarding its intention to sell its stake in Columbian Chemicals Company. This is the statement in its entirety.

DC Chemical Decides to Sell its Interest in Columbian Chemicals

Woo Sug Baik, President and CEO of DC Chemical Co., Ltd. announced today that the Board of Directors approved on December 31, 2008 the sale of the Company’s entire 66.75% stake in Columbian Chemicals Company to One Equity Partners, a private equity fund that has been a JV partner to DC Chemical since its original investment in March 2006. The parties executed a definitive agreement on December 31, 2008, and the transaction is expected to be completed during the 1st Quarter of 2009, subject to regulatory approval.

In light of the current global financial crisis and imminent global as well as domestic economic downturn, DC Chemical decided to sell Columbian Chemicals to focus on core strategic businesses, mitigate global risks and reduce external debt. Although Columbian Chemicals, which has been in the carbon black business for more than 100 years, will no longer be part of DC Chemical, its 200,000 metric ton Pohang and Gwangyang plants will continue to be owned and operated by DC Chemical to serve the domestic carbon black market as it has since 1976.

Although the sales price of US$150mn is less than the total invested amount of US$257mn, this divestment is considered timely and prudent when viewed in the context of extraordinarily uncertain economic conditions and continued deteriorating financial market conditions worldwide. Cash proceeds and debt reduction from the divesture are considered significant, and they in turn will strengthen DC Chemical’s continued effort to evolve its portfolio towards fast growth and highly profitable businesses. __________________________________________________________

Below are the financial details of the divestiture. Here is the link.

1. Details of Issuing Company – Name of Company (Nationality): Columbian Chemicals Holding LLC (USA) – Representative : Woo Hyun Lee – Capital Stock (KRW) : 462,423,500,000KRW – Relationship to Company : Subsidiary company – Number of Outstanding Shares : 385,000,000 – Main Business : Producing and supplying carbon black

2. Details of Disposal – Number of Shares to Be Disposed : 256,987,387 – Disposal Amount (KRW) : 188,925,000,000KRW – Equity Capital (KRW) : 1,165,386,207,000KRW – Ratio to Equity Capital(%) : 16.21% – Applicability of Large-scale Corporation : yes

3. Number of Shares Held and Shareholding Ratio after Disposal – Number of Shares Held : 0 – Shareholding Ratio : 0%

4. Purpose of Disposal – Focus on core strategic businesses, mitigate global risks and reduce external debt. -To solve the problem issued by the Korea Fair Trade Commission pursuant to the Monopoly Regulation and Fair Trade Act.

5. Scheduled Disposal Date : –

6. Date of Board of Directors’Resolution (Decision Date) : 2008-12-31 – Attendance of Outside Directors : Present(No.) 5 Absent(No.) – – Attendance of Auditors(members of Audit Committee) : present

7. Subject to reporting to the Fair Trade Commission : Yes

8. Other references concerning investment decisions – Above”1_Capital Stock” is as of September 30, 2008. – Above “2_Disposal Amount (KRW)” is estimated with the F/X Rate (KRW 1,259.5/USD) of the decision date, and the actual disposal amount is subject to change according to the F/X rate of the actual closing date. – Above “5.Scheduled Disposal Date” is expected to be completed during the 1st Quarter of 2009.

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