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KRATON Announces Price Increase for All KRATON(R) G Polymers Globally

KRATON Polymers LLC (KRATON) today announces a price increase worldwide for all of its KRATON G polymers of $250 U.S. dollars per metric ton which will go into effect on January 1, 2006.

"At KRATON, we place significant emphasis and resources in the development of innovative solutions to support our customers' growth needs. This past year however, we have continued to experience unprecedented increases in raw material costs, a trend that we see continuing in 2006," Kevin M. Fogarty, Executive Vice President said. "While we have tried to minimize the impact of this cost pressure to our customers, we can no longer rely on productivity gains and cost reductions alone. Therefore, we must increase our prices accordingly."

For more information about KRATON products please visit our website at www.KRATON.com or e-mail us at info@KRATON.com.

About KRATON

KRATON Polymers LLC is a premier, global specialty chemicals company and is the world's largest producer of styrenic block copolymers ("SBCs"), a family of products whose chemistry was pioneered by KRATON over forty years ago. SBCs enhance the performance of applications including adhesives, sealants, asphalt and bitumen modification, packaging, compounding and personal hygiene products. KRATON has the leading position in nearly all of its core markets and is the only producer of SBCs with global manufacturing capability. Its production facilities are located in the United States, The Netherlands, Germany, France, Brazil and Japan.

Polymer Holdings LLC is the parent company of KRATON Polymers LLC and has no material assets other than its investment in KRATON Polymers LLC.

Forward-Looking Statements

This press release may include "forward-looking statements" which are statements other than statements of historical fact and are often characterized by the use of words such as "believes," "expects," "estimates," "projects," "may," "will," "intends," "plans" or "anticipates," or by discussions of strategy, plans or intentions. All forward-looking statements in this presentation are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

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