August 4, 2008

Kraton Polymers Announces North American SBC Price Increases

Kraton Polymers continues to experience sustained and unprecedented raw material and energy related cost increases. New monthly, record prices continue to be established for our primary raw materials, and we are obliged to implement further price increases.

As a result of these aggressive cost drivers, effective September 1, 2008, we are announcing a general price increase of at least 330 USD/MT, or 15 cents per pound, in North America for our entire SBC portfolio.

Our SBS, O/E SBS, SIS, and SIBS polymers and compounds will rise by at least 330 USD/MT on 1st September.

Our HSBC portfolio will also increase in price by the same amount, with SEBS, SEPS, and derivative compounds, rising by at least $330/MT on September 1st.

We appreciate our customers' continued business and understanding as Kraton continues to manage these difficult, and volatile, economic challenges. We continue to strive to be the innovation leader, providing polymer solutions and value-added services that enable our customers to differentiate and succeed in their markets.

About Kraton

Kraton is a leading global producer of engineered polymers and, we believe, the world's largest producer of styrenic block copolymers (SBCs), a family of products whose chemistry was pioneered by us over forty years ago. SBCs are highly-engineered thermoplastic elastomers, which enhance the performance of numerous products by delivering a variety of attributes, including greater flexibility, resilience, strength, durability and processability. Kraton polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving, roofing and footwear 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, Germany, France, The Netherlands, Brazil and Japan.

Kraton, the Kraton logo and design, and "Giving Innovators their Edge" tagline are trademarks of Kraton Polymers LLC.

Forward Looking Statements

This press release includes "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 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. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.