NEWS RELEASE

Price Increase Notice

(Schenectady, NY) May 30, 2008. Fluctuations in the price of raw materials are continuously affecting the industry and our business. SI Group Inc. is announcing a price increase due to the escalation in the price of feedstocks, specialty oils and rising energy costs. Effective on shipments on or after June 13, 2008 SI Group will be increasing prices on all grades of phenolic resins from US$0.04/LB to US$0.08/LB depending on product formulation.

About SI Group
SI Group is a family-owned company founded in 1906 and headquartered in Schenectady, New York. A leading global manufacturer of alkylphenols, phenolic resins and other chemical intermediates, SI Group has over 20 operations in 13 countries around the world. For more information about SI Group, visit www.siigroup.com.