NEWS RELEASE

Price increase notice

(Schenectady, NY) August 29, 2006 SI Group, Inc., formerly Schenectady International Inc., has announced a price increase ranging from US$0.20/KG to US$0.40/KG for all grades of phenolic resins on shipments on or after September 15, 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. Additionally, the recent force majeure announcements related to formaldehyde may have significant impact on the supply and pricing of phenolic resins. As this information is clarified, further price adjustments may be required in the near future.

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