News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi and Nippon Kayaku Sign a License Agreement on the Hepatic Artery Plugging Material
Gelpart (Porous Gelatin Particles)

February 7, 2005

Tokyo, Japan - February 7, 2005 - Yamanouchi Pharmaceutical Co., Ltd. (president: Toichi Takenaka) and Nippon Kayaku Co., Ltd. (president: Koichiro Shimada) announced that the two companies signed a licensing agreement that grants Nippon Kayaku exclusive rights to market and distribute Gelpart (development code No.: YM670), a hepatic arterial plugging material discovered by Yamanouchi and approved in January, and to develop additional indications for it in Japan.

Gelpart consists of porous gelatin particles and is a new medical device used as a plugging material in transcatheter arterial embolization (TAE) conducted for hepatocellular carcinoma. It selectively and non-invasively treats tumor lesions by plugging and blocking blood flow through the hepatic arteries that supply tumors. It is scheduled to be launched this summer. It is not being developed overseas.

Yamanouchi focuses on the five fields of urology, cardiovascular disease, GI, endocrinology, and locomotorium/inflammation and plans to intensify its focus on these fields in order to maximize its corporate value. In order to maximize the value of the product, it decided to license Gelpart to Nippon Kayaku, which has a strong presence in the field of oncology.

Nippon Kayaku has been marketing IA CALL (cisplatin for intra-arterial injection) indicated for hepatocellular carcinoma since July 2004, and hepatic cancer is one of its focal areas. The acquisition of the right to Gelpart expands its product portfolio of oncology and will help it further contribute to the improvement of therapeutic performance in this field. It believes that this will strengthen and contribute to the development of its pharmaceutical business centered on oncology.