News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi to Construct Pharmaceutical Manufacturing Plant in Oklahoma

March 5, 1997

Yamanouchi Pharmaceutical Co., Ltd. (President: Masayoshi Onoda), is to construct a solid formulation pharmaceutical manufacturing plant in Norman, Oklahoma. Guests attending the ground-breaking ceremony held on March 4, 19 97, included Dr. Leo E. Presley, Executive Director of the Oklahoma Department of Commerce.

The new plant is being constructed on the grounds of the Norman Plant of Yamanouchi's U.S. subsidiary, Shaklee Corporation (Head Office: San Francisco, California), which will manage the plant. The first phase of the project - involving the construction of a three-story, 4,200 square meter production facility and warehousing - will cost $23.5 million and is scheduled to be completed in the summer of 1998. The production facility will house a line for manufacturing of tamsulosin (marketed in Japan under the brand name Harnal(R) ), a treatment for the symptoms of benign prostatic hyperplasia, in capsule formulation for the U.S. market. The drug is currently under U.S. Food and Drug Administration (FDA) review.

The second and third phases will see the construction of two more production lines, which will employ new Yamanouchi drug delivery technologies, including that for WOWTABTM orally disintegrating tablets, to manufacture various solid formulations. In addition, quality assurance, administration and warehousing facilities will be expanded. The second and third phases of construction will be tailored to the development of Yamanouchi's business operations in the United States.

Shaklee Corporation, in its role as a leading manufacturer of nutritional products, spearheads Yamanouchi's consumer health care products business and has been expanding into pharmaceutical-related areas. In addition to overseeing the production of Yamanouchi drugs in the United States, Shaklee Corporation intends to employ WOWTAB technologies to manufacture other companie s' drugs on a contract basis and use its technological strengths to develop its overall pharmaceutical operations. Moreover, Shaklee Corporation will manage the Yamanouchi-Shaklee Pharmaceutical Research Center, now under construction in Palo Alto, California.

Yamanouchi U.S.A. Inc. (Head Office: White Plains, New York State) engages in clinical development and promotes Yamanouchi's pharmaceutical business in the United States. Yamanouchi U.S.A. is working in cooperation with a local licensee in anticipation of the emergence of a strong market for tamsulosin in the near future. Working closely with Yamanouchi U.S.A. and Shaklee Corporation, Yamanouchi is striving to develop its business in the United States, aiming to build integrated R&D, production, and marketing operations similar to those it already has implemented in Europe.

At the ground-breaking ceremony, Dr. Presley presented Shaklee Corporation with a commendation and the prestigious Osage Award from Governor Frank Keating in appreciation for the company's contributions to the Oklahoma economy.


Shaklee Corporation

Established: 1956 (acquired by Yamanouchi in 1989)
Head Office: SanFrancisco, California
Employees: 1,850
Principal operations: Nutritional supplements, household goods, personal care products, food, flowers, licensed production of OTC drugs Principal markets: United States, Canada, Mexico,Argentina, Singapore, Malaysia, Taiwan, Philippines
Research Center: Hayward, California
Palo Alto, California (construction scheduled for completion in November 1997)
Plant: Norman, Oklahoma

Profile of Pharmaceutical Manufacturing Plant

Scheduled completion: July 1998
Site: Norman, Oklahoma
Facilities: - Pharmaceutical manufacturing building
(three floors, floor space of 4,200
square meters/44,821 square feet)
- Capsule formulation line
- Testing/Administration areas
- Warehouse (13,661 square feet)
Construction cost: US$23.5 million
(Construction of additional production lines, testing and administration are as, and warehouse facilities is planned in line with the expansion of business activities.