NEWS RELEASE

Price increase notice

(Schenectady, NY) June 1, 2006 SI Group, Inc., formerly Schenectady International Inc., has announced a price increase from US$0.04/LB to US$0.08/LB for all grades of phenolic resins on shipments on or after June 16, 2006. This adjustment is primarily due to the continued upward global market price pressure of crude oil, energy, transportation, packaging and petrochemical feed stocks seen over the past few months.

SI Group is the leading innovator in phenolic resin technology for the tire industry.  SI Group is a global chemical manufacturer with over 20 operations in 14 countries.  For more information visit www.siigroup.com.