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The Company Achieved Safety Acceptance of the Expert CommitteeMarch 10, 2006

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The State Bureau of Safe Production Supervision held the State Acceptance Meeting of IPS Project in Nanjing from March 6 to 8 of 2006, attended by 47 representatives form Jiangsu Provincial Bureau of Safe Production Supervision, Nanjing Municipal Bureau of Safe Production Supervision, China Chemical Safety Association, Sinopec, Sinopec Yangzi Petrochemical Corporation, BASF-YPC Company Limited and China Institute of Science for Safe Production, etc. Eleven experts were summoned to form the Safety Acceptance Expert Committee to scrutinize the Company's IPS Project according to the Safety Examination and Acceptance Plan of IPS Project made by the State Bureau of Safe Production Supervision. After listening to BYC-IPS Project Safety Report of BASF-YPC Company Limited, Report on the Design and Construction of IPS Project of Fluor Daniel of USA and Safety Assessment on IPS Project of China Institute of Science for Safe Production, the Expert Committee checked the documents on design, construction, operation and safety management of IPS Project and inspected the site, finally they agreed that the IPS Project achieved the Safety Acceptance.

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