Tokai Carbon Co., Ltd. announced that its Board of Directors today resolved to repurchase its own shares at the market, pursuant to Article 156 of the Corporate Law of Japan (hereafter the “Law”) applied as interpretation of the provisions set forth in Article 165, Paragraph 3 of the Law.

1. Reason for repurchase In order to implement flexible capital strategies in accordance with financial and business environments.

2. Details of repurchase (1) Type of shares Common stock (2) Aggregate number of repurchaseable shares Up to 1.6 million share (0.78% of total number of shares issued) (3) Aggregate repurchase amount Up to 1 billion yen (4) Schedule to repurchase From June 19 to July 31, 2006 (Reference) Total number of shares issued cumulatively repurchased and held as treasury stock as of May 31, 2006 Total number of shares issued (excluding treasury stock) 197,608,251 shares Treasury stock 7,579,177 shares