NEWS RELEASE

Price Increase Notice 

(Schenectady, NY) July 30, 2007 SI Group, Inc. has announced a price increase ranging from US$0.06/KG to US$0.12/KG for all grades of phenolic resins on shipments on or after August 15, 2007.

This adjustment is 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 13 countries.  For more information visit www.siigroup.com.