SINOPEC Catalyst Company, announces to implement price increases of minimum 15% based on the current price in overseas market effective on March 15, 2011, regarding FCC catalyst (including DCC catalyst). This move is in response to the following factors: the sharp cost increase of key raw material, the unprecedented inflationary pressure, the states tax policy adjustment, the RMB appreciation, and so on. The above factors have led to a substantial rise in the cost of FCC Catalyst (including DCC catalyst), and we have been unable to continue the current price commitment. In order to alleviate the huge pressure of rising costs, we have no option but to take pricing actions to partially offset this extraordinary and severe inflation.

We will continually work closely with our customers to provide our high level of product quality and technical support, and unswervingly commit to the development of Sinopec Catalyst Company targeting one of the worlds most competitive and influential catalyst suppliers.