NEWS RELEASE

Price increase notice

(Schenectady, NY) October 6, 2006 SI Group, Inc., formerly Schenectady International Inc., has announced a price increase ranging from US$0.07/LB to US$0.14/LB for all grades of phenolic resins on shipments on or after October 17, 2006.

This adjustment is primarily due to the highest benzene price all year which drives the price of phenol along with the methanol price index which drives formaldehyde pricing.

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 13 countries.  For more information visit www.siigroup.com