News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Pharmaceutical Co., Ltd.
reached a settlement on famotidine polymorphism patent with Gedeon Richter Ltd.

January 11, 2000

Yamanouchi Pharmaceutical Co., Ltd. (President: Masayoshi Onoda, hereinafter "Yamanouchi") reached a settlement with Gedeon Richter Ltd. in Hungary (hereinafter "GR") regarding patent disputes between the companies on famotidine polymorphism patent owned by GR. As a part of the settlement, GR granted an exclusive license of famotidine polymorphism patent to Yamanouchi in Japan, as well as undertook supplies of the active ingredient to Yamanouchi. Based on mutual agreement, both companies are making this announcement today.

GR filed applications for and obtained patents claiming pure famotidine polymorphisms, Form-A and -B, worldwide. In Japan, GR filed an application in 1987 and obtained a patent in 1997.

Yamanouchi itself has a substance patent covering any polymorphism of famotidine. Yamanouchi's Gaster contains Form-B of famotidine as its active ingredient and in order to avoid patent disputes with GR, Yamanouchi has obtained an exclusive license in Japan till the patent expiry, i.e. 2007.

Overview of GR:

Gedeon Richter Ltd. is the largest pharmaceutical company in Hungary and has a century of experience in serving the Hungarian healthcare needs. As a vertically integrated pharmaceutical company it researches, develops, manufactures and markets its products not only in the CIS and Eastern European countries but also, increasingly, supplies the world's international markets.

Establishment : 1901
Location of headquarters : Budapest/Hungary
CEO : Mr. Erik Bogsch
Annuals sale in 1998 : USD 258.4M
out of this in value of USD 175.1M were exported
Total employees : 4300
Major products : - 23 per cent of total sales effected in original products, like CAVINTON /Vinpocetine/, MYDOCALM/Tolperizone/ etc.

- 65 per cent reproduction and generic products

Overview of Yamanouchi:

Yamanouchi Pharmaceutical Co., Ltd., is the third largest pharmaceutical company in Japan and is expanding its business base to Europe, the United States and Asia. As a research-based developer, manufacturer and marketer, Yamanouchi has been introducing several world-class drugs to the international market, including the H2 antagonist famotidine, and tamsulosin, a treatment for the functional symptoms of benign prostatic hyperplasia.

Established : 1923
Head Office : Tokyo, Japan
Sales : 423.2 billion Yen (year ended March, 1999)
President and CEO : Masayoshi Onoda
Total employees : 8,400
Main business Line : Pharmaceutical products