Keyuan and Ningbo Institute to Develop Commercial Applications for Butadiene Styrene Resin

Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan or the "Company"), a leading merchant manufacturer of various petrochemical products in China, today announced that it has signed an agreement with Ningbo Institute of Technology, an affiliate of Zhejiang University, to jointly develop commercial applications for Butadiene Styrene Resin.

This is one component of Keyuan's long-term strategy to invest in technology advancement.

Keyuan will work with researchers from the Ningbo Institute of Technology to research and develop synthesis technology for Butadiene Styrene Resin over the next 2 years. Butadiene Styrene Resin is a block co-polymer with excellent transparency and anti-impact properties, including flexibility and durability. It is currently used in packaging and plastic products such as medical instruments and toys. This partnership will focus on developing commercial applications for Butadiene Styrene Resin in synthetic rubber products. Keyuan and Ningbo Institute of Technology will share the rights to products and technologies developed from this cooperation.

"We are excited to partner with Ningbo Institute of Technology," said Chunfeng Tao, Chairman and Chief Executive Officer of Keyuan. "Their expertise in research of materials chemical engineering and our track record of commercial development are a perfect match. With dozens of products using Butadiene Styrene Resin today, we see an opportunity to expand our technology and product portfolios."

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