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"POWERTOP" is an electro-deposition undercoating with low-VOC (Volatile Organic Compound) emissions. In November 1999, Nippon Paint launched its lead-free version of this environment-friendly coating under the brand name "POWERNIX." For intermediate and finish coatings as well, we were quick to develop and promote water-borne paints for overseas markets. These water-borne paints are now being promoted within Japan, contributing to a significant reduction in the use of organic solvents. For the metallic paints of finish coatings, our water-borne paints are highly acclaimed for their attractive appearance.

To meet increasing demands for higher durability and reliability, Nippon Paint established a weathering (exposure) test center for coatings and paint films in August 2001. The center is located on Miyakojima Island in Okinawa Prefecture. Here, our coatings for automobiles ("MACFLOW") and general construction paints ("Duflon" and "Duflon 4F") are subject to long-term indoor/outdoor weathering experiments.

Marketed in June 2001, the "Fineness Series" is an environment-friendly paint for building and construction applications. This series contains less amounts of harmful substances such as organic solvents and heavy metal, and features easy recyclability for reduced volume of waste. In February 2001, Nippon Paint introduced the "E-carry system" that recovers containers for paints from construction sites. This was soon followed by the launch of a general-use paint made from recycled PET plastic bottles and waste vegetable oil. We will continue to work hard on developing more environmentally sound products and technologies for various paint-related areas.

In 2001, we succeeded in developing the world's first aqueous photographic solder resist for printed circuit boards, "Aquanics," through the use of a water-based photosensitive resin for insulating materials. This product helps to improve the occupational health of workers and greatly contributes to efforts by the IT industry to reduce the environmental impact of PC and cell phone production.