News Room 2005 (The former Furukawa-Sky)

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Notice Regarding the Capacity Expansion of our Indonesia Facilities

December 26, 2005

In response to the anticipated increase in demand for aluminum extruded products for automotive heat exchangers and other parts in the Oceania and Australian Commonwealth regions, we have expanded our production capacity at our affiliate PT. Furukawa Indal Aluminum in Indonesia (Headquarters: Gresik, Java, Indonesia, President: Yoshiaki Sasaki, Capitalization: US$4 million).

We established PT. Furukawa Indal Aluminum in March 1998 as an integral part in our global network of aluminum extruded products businesses and began production there in September 1999. Furthermore we have gradually expanded our capacity there in line with growth in demand for our products. And due to our outlook for continued strong growth in demand in the region, we have decided to expand capacity a step further with the cooperation of our joint venture partner PT. Indal Investindo and Toyota Tsusho Corporation by adding a 2,750 ton extruding machine and related equipment, with the goal of starting production in July 2006. The investments for this expanded capacity are expected to cost US$6 million.

Additionally, we increased the capitalization of PT. Furukawa Indal Aluminum by US$2 million in January 2006 in response to the capacity expansion. Despite this increase in capital, our shareholding ratio in this company remains unchanged.

< Earnings Impact >

We do not anticipate any change to our outstanding earnings projections.