News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Pharmaceutical Co., LTD.
Notice Regarding Contribution in Kind of Shares of the Subsidiary

February 25, 2002

Yamanouchi Pharmaceutical Co., Ltd. (the "Company") (President: Toichi Takenaka) makes a contribution in kind of all shares held by the Company of its subsidiary, Shaklee Japan K.K. (President: Teruo Horii), to Yamanouchi Group Holding Inc., a holding company in the United States ("YGH"). Such shares are then transferred to Yamanouchi Consumer Inc. ("YCI") (President: Masakatsu Inoue), a superintendent company of the consumer product business in the United States by YGH. It is the Company's policy to promote further improvement of management efficiency by centralizing operation systems of the consumer product business (excluding OTC business in Japan) of the Yamanouchi Group through the contribution in kind of shares of Shaklee Japan K.K. to YGH and further to YCI.

Although a loss on devaluation of shares amounting to approximately ¥30 billion will occur due to the above-mentioned contribution in kind to YGH, the Company already stated this amount as an extraordinary loss for the settlement of accounts in the financial statement for the year ended March 31, 2001. While no impact on the business results on a consolidated basis is recognized, the Company will receive no dividend income from Shaklee Japan K.K. on a non-consolidated basis for the year ending March 31, 2003.

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For your reference, notifications of the Company submitted to the Stock Exchanges is attached herewith.