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June 29, 2011

Kyowa Hakko Kirin Announces a Plan to Build a New Pharmaceutical Plant

Tokyo, Japan, June 29 2011 --- Kyowa Hakko Kirin Co., Ltd. ("Kyowa Hakko Kirin") announced today a construction program for a new plant to manufacture oral formulations at its Ube Plant, its base of manufacturing for pharmaceutical products.

As Kyowa Hakko Kirin reorganizes its production base, it will construct a plant on the premises of the Ube plant to manufacture oral formulations, and some of the functions of its Fuji Plant will be transferred to the new plant.

The new factory will have automated equipment that uses the latest in manufacturing engineering technology. Construction will begin in September 2011 and finish in December 2012, and operations are expected to begin in December 2014. The total amount that will be invested in the construction of the new plant is estimated at 4 billion yen.

The new plant will allow Kyowa Hakko Kirin to implement more advanced good manufacturing practices. The company plans to improve production efficiency through automation and to increase its cost competitiveness.

<Summary of new factory construction plan>
Place of business: Kyowa Hakko Kirin, Ube Plant
Construction site: Fujimagari 2547-3, Ube City, Yamaguchi Prefecture
Site area: 63,388 m²
Construction area: 3,269.54 m²
Project details: Production of new oral formulations in an automated factory with the latest manufacturing engineering technology
Projected start of construction: September 1st, 2011
Projected start of operation: around December, 2014
Capital investment: Approximately 4 billion yen
Employees: About 80 (projected)

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