( BW)(TX-KRATON-POLYMERS) KRATON Announces Capacity Expansion at
Belpre Plant in The U.S.

    Business Editors/Chemicals Writers

    HOUSTON--(BUSINESS WIRE)--Sept. 16, 2005--KRATON Polymers LLC
(KRATON) today announces increasing production capability for KRATON D
polymers at its Belpre, Ohio, plant by 10 ktpa in response to rising
demand from customers in the paving and roofing sector of the North
American market.
    "This low cost debottleneck in SBS capacity, resulting from
success in utilizing Lean / Six Sigma techniques, continues to
demonstrate KRATON's commitment to its core markets and customers,"
said Stephen Evans, Vice President and General Manager for Paving,
Roofing and Footwear. The additional capacity is expected to be online
by April, 2006.

    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 includes "forward-looking statements" as that
term is defined in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements
other than statements of historical fact are statements that could be
deemed forward-looking statements 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 press release 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. Among these factors are changes in overall
economic conditions, the cyclical nature of the chemical industry,
changes in demand for our products, changes in inventories at our
customers and distributors, technological and product development
risks, availability and cost of raw materials, competitors' actions,
pricing and gross margin pressures, loss of key customers, order
cancellations or reduced bookings, the timing and cost of planned
capital expenditures, changes in manufacturing yields, control of
costs and expenses, significant litigation, risks associated with
acquisitions and dispositions, risks associated with our substantial
leverage and restrictive covenants in our debt agreements, risks
associated with our international operations, the threat or occurrence
of international armed conflict and terrorist activities both in the
United States and internationally, risks and costs associated with
increased and new regulation of corporate governance and disclosure
standards (including pursuant to Section 404 of the Sarbanes-Oxley Act
of 2002), and risks involving environmental or other governmental
regulation. Readers are cautioned not to place undue reliance on
forward-looking statements. We assume no obligation to update such
information.

    --30--BM/ho*

    CONTACT: KRATON Polymers LLC, Houston
             Analyst:  
             Nick Dekker, 832-204-5454
             or
             Media:
             Shari Mattern, 832-204-5998