News Release

Kyowa Hakko Bio announced the reorganization of Yamaguchi Production Center

May 25, 2010

Kyowa Hakko Bio Co., Ltd. (Chiyoda-ku, Tokyo, Japan) announced today that it has resolved to carry out the reorganization of Yamaguchi Production Center (YPC), its domestic production site in Japan. The company intends to expand the manufacturing capacity of fine chemical products at Hofu, a part of YPC, and integrate its Ube manufacturing function of the same products gradually into Hofu by the year of 2021.

It is recognized as one of the important business issues to re-arrange and improve the global manufacturing system to guarantee the stable supply of fine chemical products for the future under the current condition that the demand for these products are continuously growing especially in developing countries. "We believe that the reorganization is a positive development for Kyowa Hakko Bio and will allow us to promote the efficiency and diversification of our production and execute our growth strategy for the future." said Dr. Shuichi Ishino, President, Kyowa Hakko Bio Co., Ltd.

Ethical drugs of Kyowa Hakko Kirin Co., Ltd., the parent company of Kyowa Hakko Bio as well as agrochemicals and livestock products are continuously manufactured at Ube site without any impact of this reorganization plan.

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