JAPAN AIR GASES

Price increase for silane under tight supply-demand balance [March 31, 2008]

Following the announcement on February 26 on the gas price revision, Japan Air Gases Co. (Air Liquide Japan, Ltd) provides more information of a specific molecule: silane. Demand for silane gas is rapidly growing in electronics industry, and the price increase is due to the growing tension in the supply chain and the increase of procurement cost of this gas worldwide. In this context, Japan Air Gases will increase the prices of silane products more than 20% as of April 1st, 2008.

Silane gas is widely used in electronics industry such as semiconductor, flat panel display, and solar cells, but its environment is rapidly changing:

	In addition to the healthy demand growth in semiconductor and liquid crystal industry, an emerging demand from thin-film solar cell industry is adding more pressure on supply (Forecasted demand in 2009 is a double of that in 2006.)

	Worldwide merchant silane production capacity is challenged by the booming demand, and the supply is tight.

	To respond to such growing demand, we are continuing an effort to provide stable silane supply to his customers not only by investing in new capacity in our affiliated production company DENAL Silane and in our own transfilling plant but also by securing other silane sources in collaboration with our parent company, Air Liquide. The fact, however, is that the supply situation is not all predictable.

	Under such circumstances, the cost increase cannot be avoided in production or supply of silane gas.

Air Liquide Group has the largest silane dedicated merchant production and sources for silane around the world, and is expanding its supply capabilities and making continuous efforts for the stable supply and cost reduction to meet the demands by the customers in electronics industry.

Japan Air Gases Ltd. was established in January 2003, on the purpose to integrate industrial and medical gas business of Air Liquide Japan, Ltd. (operation started in 1907) and Osaka Sanso Kogyo Ltd. (established in 1934), and became a 100% Air Liquide Group Company in March 2007. Japan Air Gases Ltd. and Air Liquide Japan, Ltd. were merged as of September 1st, 2007 with Air Liquide Japan Ltd. being the remaining Company. As of the same date, Air Liquide Japan Ltd. implements Internal Company System to keep continuity and autonomy of both business activities: Gas & Service and Engineering & Construction. Gas & Service activity are being conducted by Japan Air Gases Company of Air Liquide Japan Ltd. Engineering & Construction are being conducted by Air Liquide Engineering Japan Company (of Air Liquide Japan Ltd.)

Contact:
Toyoyama, Shun, Communication Dept., Japan Air Gases Company, Air Liquide Japan Ltd.
TEL:03-3536-2642 URL:http://www.japanairgases.co.jp/