News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Receives Approvable Letter from US FDA for the Treatment of Urinary Frequency and Urinary Incontinence Vesicare

October 20, 2003

Tokyo, Japan - October 20, 2003 - Yamanouchi Pharmaceutical Co., Ltd. (president: Toichi Takenaka) announced that its US subsidiary Yamanouchi Pharma America, Inc. (YPA; Paramus, NJ) received an approvable letter from the Food and Drug Administration (FDA) for the treatment of urinary frequency and urinary incontinence Vesicare(Development Code: YM905). In the letter, the FDA requested additional clinical data. Yamanouchi expects to launch the drug in 2004 after completing the request by the FDA.

Vesicare is an investigational compound for the treatment of urinary frequency and urinary incontinence and one of Yamanouchi's global strategic products. YPA submitted a New Drug Application with the FDA in December last year. When approved, Vesicare will be the first product in the United States to be marketed through YPA with its own independent sales and marketing organization. YPA is currently preparing for launching Vesicare. Yamanouchi concluded a co-promotion agreement with the US subsidiary of GlaxoSmithKline in August this year.

A Marketing Authorization Application was filed in Europe in January 2003. In Japan, PIII clinical trials are underway.