LITTLE FALLS, NJ, November 27, 2007 –Many small and medium-sized enterprises (SMEs) selling in the European Union could be caught off-guard by the recently implemented REACH regulations requiring registration and approval of chemicals used in manufacturing, according to Kline, a worldwide consulting and research firm.

REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) is a wide-ranging set of EU legislation intended to manage and control the risks to human health and the environment from the use of chemicals.

Many potentially affected companies may be unaware that the REACH legislation applies to them. For example, Kline’s research shows that smaller companies in the recycled paper, secondary raw materials, and metalworking fluids industries are largely unaware of the REACH requirements.

“REACH will impact all EU manufacturers and downstream users of chemicals as well as importers of chemicals into the EU,” says Nancy Mills, FlashPoint project manager for Kline. The newly published Kline FlashPoint report, REACH: A Regulatory Behemoth, reviews the scope of this legislation, outlines its impact on businesses, and offers companies strategies to prepare for compliance.

“It’s important to act now to avoid future costs and the potential disruption of production and distribution,” says Mills. “SMEs are going to be the most affected, since the cost of registering the chemicals used in a company’s processes will be more deeply felt by them. Larger companies not only have more resources but higher volumes, which will enable them to lower the cost per ton of registering a chemical.”

Among the recommendations provided in the report, Kline suggests SMEs offering the same chemical should consider jointly pre-registering that chemical to reduce the cost per volume.

For more information about REACH: A Regulatory Behemoth, go to www.klinegroup.com/reports/f0703.asp.

About Kline

Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for nearly 50 years. For more information, visit (www.klinegroup.com)