DIC Develops the MEGAFACE™ EFS Series of Environment-Friendly High-

Performance PFAS-Free Surfactants

—Innovative products deliver a performance rivaling that of fluorosurfactants and also reduce environmental impact—

Business & Product News Release

Aug. 1, 2023

Tokyo, Japan—DIC Corporation today announced the development of the MEGAFACE™ EFS series of environment-friendly surfactants that

deliver a performance rivaling that of conventional fluorosurfactants despite not containing perfluoroalkyl and polyfluoroalkyl substances
(PFASs). These new products are suitable alternatives to fluorosurfactants for diverse applications, including displays, semiconductors,

automobiles and coatings. The Company will promote the series in Japan, other East Asian markets, Europe and the United States, among

others, targeting industries ranging from electronic materials to electric vehicles (EVs) and batteries, and aims to achieve annual sales of ¥5

billion by fiscal year 2030.

Background to Development

Fluorosurfactants, added in small amounts, lower the surface tension of liquids, improving emulsification and surface activity. They thus play a
key role in detergents, coatings and industrial products, among others. However, concerns regarding latent environmental risks associated
with PFASs have prompted debate over regulating these substances, particularly in Europe and the United States. This has driven up demand

for the development of PFAS-free alternatives to fluorosurfactants.

Product Overview

DIC embarked on the development of a PFAS-free surfactant in a proactive response to rising global needs for sustainable alternatives to

fluorosurfactants. Leveraging its proprietary technologies and environment-friendly raw materials, the Company succeeded in creating the
MEGAFACE™ EFS series of products boasting surface activity equal to or better than that of conventional fluorosurfactants. While realizing
PFAS-free surfactants that rival fluorosurfactants on the performance front has been seen as a difficult challenge, DIC has achieved this goal

with the MEGAFACE™ EFS series of products with an ability to reduce surface tension as good or greater than that of fluorosurfactants
(figure 1), thereby ensuring excellent coating uniformity (leveling behavior) (figure 2).
 Figure 1: Ability to Reduce Surface Tension Figure 2: Leveling performance on Thin Film Coating (Comparison of surface smoothness)

Customers who usually use fluorosurfactants have rated the new series highly. Going forward, DIC will seek to build a market-leading position
by offering these products globally as an alternative that contribute to the sustainability of industrial activity and the reduction of environmental

risks.

In the DIC Vision 2030 long-term management plan, DIC sets forth a basic strategy of expanding its Functional Products business with a focus

on sustainable products. The DIC Group will continue to capitalize on its long history, as well as its wealth of expertise and technical

capabilities in the area of synthetic resins, to accelerate development and bolster sales of such products, thereby contributing to the resolution
of key social imperatives.

-Ends-

About DIC Corporation

DIC Corporation is one of the world’s leading fine chemicals companies and the core of the DIC Group, a multinational organization

comprising over 190 companies, including Sun Chemical Corporation, in more than 60 countries and territories. The DIC Group is recognized
as a global leader in the markets for a variety of products essential to modern lifestyles, notably packaging materials, display materials such

as those used in television and computer displays, and high-performance materials for smartphones and other digital devices, as well as for

automobiles. Through such products, the Group endeavors to deliver safety and peace of mind, and color and comfort, to people everywhere.
The DIC Group also seeks to contribute to a sustainable society by developing innovative products that respond to social change and which

help address social imperatives. With annual consolidated net sales exceeding ¥1 trillion and 22,000-plus employees worldwide, the Group

pledges to continue working in close cooperation with our customers wherever they are.https://www.dic-global.com/
Contacts

Commercial Contact:
Performance Material Products Division’s Chemicals Sales Group

E-mail: dic_megaface_pfas-free@ma.dic.co.jp