NEWS RELEASE

Price Increase Notice 

(Schenectady, NY) October 8, 2007 SI Group, Inc., has announced a price increase ranging from US$0.04 /LB to US$0.08 /LB for all grades of phenolic resins on shipments on or after October 20 , 2007.

This adjustment is based on the escalating cost of feedstocks with a rise in the cost of formaldehyde.

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.