News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Grants Exclusive Promotion Right for InductOsTM, a Preparation of the Bone
Morphogenetic Protein BMP-2, in Europe to Medtronic

February 6, 2003

  Tokyo - February 6, 2003 - Yamanouchi Pharmaceutical Co., Ltd. ("Yamanouchi"; President and CEO: Toichi Takenaka) announced that its European subsidiary Yamanouchi B.V. ("YBV", The Netherlands), Wyeth (New Jersey, USA) and Medtronic Inc. ("MDT"; Minnesota, USA) agreed to grant to MDT the exclusive right to promote InductOsTM, a preparation of the bone morphogenetic protein BMP-2, in Europe.

  YBV and Wyeth formed a partnership (GYEP: GI-Yamanouchi European Partnership) in 1993 in order to jointly develop and market BMP-2 in Europe. The two companies carried out its clinical development in Europe through GYEP and obtained regulatory approval in September, 2002 for open tibia fractures under the brand name of InductOsTM . Thereafter, they have been discussing how to promote and market the product in Europe in order to optimize its commercial value.

  Based on the new agreement, GYEP will grant to MDT the exclusive right to promote InductOsTM in Europe for not only orthopedic trauma indications, including tibia fractures, but all potential future spinal and maxillofacial indications as well. MDT will be fully responsible for promotion. YBV, Wyeth and MDT will confer with each other to formulate policies regarding promotion, brand establishment and commercialization.

  MDT is the world leading medical technology company that deals with implantable medical devices and other therapeutic products. It has expert knowledge and experience in the marketing of these products in Europe. In the US, it is marketing BMP-2 as a medical device for degenerative spinal disorders.