News Release

Yamanouchi Pharmaceutical Co., Ltd.

A New Pharmaceutical Manufacturing Plant Completed in Norman, Oklahoma, U.S.A.

September 17, 1998

Shaklee Corporation, a subsidiary of Yamanouchi Pharmaceutical Co., Ltd. (President & CEO: Masayoshi Onoda), has completed construction of a new pharmaceutical manufacturing plant located in Norman, Oklahoma, in the United States. Opening ceremonies for the Yamanouchi Shaklee Pharma Norman Manufacturing Center were held on September 16, local time. Among the many distinguished guests attending the ceremony were Oklahoma Governor Frank Keating, Norman City Manager Ron Wood and Dr. Skip Porter of the University of Oklahoma.

The new pharmaceuticals facility was built on the grounds of Shaklee Corporation's Norman plant, and the San Francisco, California-based company will handle operations of the new facilities. The newly completed first-phase construction includes a three-story, 5,400 square-meter complex containing both manufacturing and administrative facilities. The manufacturing facilities are equipped with a capsule manufacturing line and is dedicated to manufacture Flomax (tamsulosin, sold as Harnal in Japan), a treatment for the functional symptoms of benign prostatic hyperplasia. This product was launched in the United States through licensee Boehringer Ingelheim Pharmaceuticals,Inc(BIPI).

Plans for second and third-phase construction include installation of two production lines for WOWTAB, a quick-dissolving tablet that can be administered without water, and a solid dosage manufacturing line for Yamanouchi's original products. Quality control and administrative facilities as well as new warehousing space will also be added at the site. Additional construction will be undertaken in line with business expansion in the United States.

As a leading manufacturer and distributor of nutritional-supplement food products, Shaklee Corporation plays a major role in the consumer health care business of the Yamanouchi Group and is actively expanding its pharmaceutical business. Shaklee manages the Yamanouchi Shaklee Pharma Research Center, located in Palo Alto, California, which focuses on research in drug delivery technologies. Looking ahead, Shaklee will not only manufacture Yamanouchi's drug products for sale in the United States but also plans to expand through consignment production of WOWTAB and other operations in order to take advantage of its strong technological capabilities.

Yamanouchi has fully integrated pharmaceutical operations in Europe including R&D, manufacturing and marketing. Currently, Yamanouchi U.S.A. Inc., of Paramus, New Jersey, is conducting clinical trials and developing its pharmaceutical business in the United States. Through the launch of Flomax, the firm is cooperating with BIPI. Yamanouchi is steadily building a platform for pharmaceutical business in the United States.

<For reference>
Shaklee Corporation
Established: 1956 (acquired by Yamanouchi in 1989)
Head Office: San Francisco, California
Number of Employees: Approximately 2,100
Principal business: Manufacture and marketing of nutritional supplements, household products, personal care products, foods and cut flowers, contract manufacturing pharmaceutical products
Marketing base: United States, Canada, Mexico, Singapore, Malaysia, The Philippines
Research Center: -Hayward, California
-Palo Alto, California (completed in November, 1997)
Manufacturing Facility: Norman, Oklahoma
Sales: Approximately ¥88.0 billion (year ended March 31, 1998)