News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Introduces the AribaRBuyerTM e-Procurement Solution to Enhance Efficiency of Indirect Materials Purchases
-e-Procurement of Office Supplies & Business Travel Tickets Goes into Full-scale Operation-

November 28,2002

Tokyo November 28, 2002 - Yamanouchi Pharmaceutical Co., Ltd. ("Yamanouchi"; Headquarters: Chuo-ku, Tokyo; President and CEO: Toichi Takenaka;), Dee Corp. ("Dee Corp."; Headquarters: Chuo-ku, Tokyo; President and CEO: Ken Miyauchi), a member of the Soft Bank Group engaged in the procurement support business, and Nihon Ariba K.K. ("Nihon Ariba"; Headquarters: Shinjuku-ku, Tokyo; President & CEO: Ryo Miyashita) have reached agreement on the adoption by Yamanouchi of the AribaRBuyerTM solution, which enables companies to engage in e-procurement of indirect materials. The system went into full-scale operation in November. Yamanouchi is the first major domestic pharmaceutical company to adopt the AribaRBuyerTMsolution in Japan.

The AribaRBuyerTM solution developed by Nihon Ariba is an electronic procurement solution for the purchase of indirect materials. By coordinating orders on indirect materials placed by each department and division, centralizing and automating purchase procedures, and placing orders through the Internet, it enables companies to 1) reduce purchase costs (as a result of orders in large quantities), 2) centralize all purchases by the company, and 3) reduce the purchase cycle.

More specifically, this solution systematizes a series of procedures required when a company purchases a wide range of indirect materials such as business travel tickets, office supplies and expendables, including 1) selection of goods using electronic catalogues, 2) approval by management, 3) placement of orders to suppliers, and 4) settlement. It constructs a B-to-B trade system between the company and suppliers via the Internet and reduces overall indirect materials costs by enhancing the company's buying power as a result of centralized ordering in large quantities, centralized control of information, and shortening of purchasing procedures.

In July 2002, Yamanouchi commenced system testing at its head office and Hasune branch (Itabashi-ku, Tokyo), focusing on office supplies. In October, it commenced company-wide e-procurement by extending the system to 12 domestic branches, four research laboratories, three plants and most of its subsidiaries. As full-scale operations went online in November, it added tickets for business trips (domestic and international airlines and JR rail tickets) to the list of items handled by e-procurement, and plans to extend the range still further to temp services and corporate gifts by the end of 2002.

On October 1, Yamanouchi reorganized its Purchasing Department, which had been primarily responsible for direct purchases of raw materials for products, etc., and set up a new group to specialize in indirect purchases. These moves are designed to promote the introduction and management of e-procurement of indirect materials while reinforcing Yamanouchi's procurement performance analysis capabilities and cost management systems.

In addition to acting as the distributor for AribaRBuyerTM in this transaction, Dee Corp. served as consultant and was responsible for installing the system. It will continue to provide follow-up services once the system is in full operation.


About Yamanouchi

Company Name: Yamanouchi Pharmaceutical Co., Ltd.
Representative: Toichi Takenaka, President and CEO
Head Office Address: 3-11, Nihonbashi-Honcho 2-chome, Chuo-ku, Tokyo
Lines of Business: Developing, manufacturing, and import, export, and marketing pharmaceuticals, consumer health care, foods, medical equipment
Capital: Approximately 99.7 billion yen (as of the end of March 2002)


About Dee Corp.

Company Name: Dee Corp.
Representative: Ken Miyauchi, President and CEO
Head Office Address: 1-4-1, Shinkawa, Chuo-ku, Tokyo
Lines of Business: General procurement support services for companies using the Internet
Established on: February 21, 2001
Capital: 320.55 million yen
Shareholders: 51% by Soft Bank EC Holdings Co, Ltd. and 49% by Soft Bank Corp.


About Nihon Ariba K.K.

Company Name: Nihon Ariba K.K.
Representative: Ryo Miyashita, President and CEO
Head Office Address: 3-20-2, Nishishinjuku, Shinjuku-ku, Tokyo
Lines of Business: Development and marketing of solutions to support B-to-B trades such as electronic procurement and marketing
Established in: December 1999
Capital: 4,670 million yen