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The Company Achieved State Acceptance of Environmental ProtectionMarch 20, 2006

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On March 18 2006, organized by Environmental Impact Estimation Office of State Bureau of Environmental Protection, attendees from Sinopec Corporation, Jiangsu Provincial Environmental Protection Office, Nanjing Municipal Environmental Protection Bureau, China Environment Monitoring Station, Jiangsu Environment Monitoring Center, Environmental Protection Technology Center of Sinopec Shanghai Petrochemical Company Limited and BASF-YPC Company Limited jointly held a site inspection to the Company's Integrated Petrochemical Site Project (IPS Project) on environmental protection. Then all the attendees checked relevant documents and listened to the report of BASF-YPC Company Limited on the environmental protection of IPS Project and report of China Environment Monitoring Station on the monitoring data to the IPS Project. After thorough discussion, all the attendees agreed that BASF-YPC Company Limited achieved state acceptance of environmental protection.

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