News Release

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Pharmaceutical Co., Ltd.,
Completes U.S. Research Center

November 26, 1997

Yamanouchi Pharmaceutical Co., Ltd. (President: Masayoshi Onoda), has announced the completion of the Yamanouchi Shaklee Pharma Research Center in Palo Alto, California. A ceremony was held on November 25, with Stanford University President Gerhard Casper, Congresswoman Anna Eshoo, Palo Alto Mayor Joseph Huber, and many other honored guests in attendance.
A proclamation from California Governor Pete Wilson was presented by Lloyd Day, Assistant Secretary International Trade and Commerce Agency.

Construction of the center began in July 1996. It comprises two two-story buildings on a site of approximately 24,000 m2 within Stanford Research Park, a world-famous research mecca. The total floor space of the research laboratories, pharmaceutical pilot manufacturing facility, and administrative offices is about 7,000 m2.

The principal activities of the center will include (1) producing clinical trial materials for Yamanouchi in-house developed drugs in preparation for FDA New Drug Application, (2) offering a wide range of formulation-related services for clients and technical support - covering the entire process from such R&D stages as formulation development, pilot production, clinical trial material production to commercial manufacturing - on a contract basis for U.S. pharmaceutical makers, and (3) developing new drug delivery technologies.

The center is administered and managed by Yamanouchi Shaklee Pharma (YSP), and will be staffed by 40 to 50 persons. YSP was established this year as the pharmaceutical arm of Yamanouchi subsidiary Shaklee Corporation, which is principally involved in the manufacture and marketing of consumer products, including nutritional supplements, and is mainly supporting Yamanouchi's pharmaceutical business in the U.S. market through the commercial development of the Company's drug delivery technologies.

Shaklee Corporation, a leading manufacturer of nutritional supplements, developed a high level of technology and know-how over long years of experience, and joined the Yamanouchi Group in 1989. Later, the company entered the pharmaceutical field by undertaking consigned production of OTC products for other pharmaceutical companies, but the establishment of YSP represents a quantum leap in its development in this area.

YSP is fully prepared for the commercial development of such Yamanouchi in-house developed drug delivery technologies as WOWTAB* and OCAS**, which are expected to form the core of its business, and is already in the negotiation stages of consigned production and other agreements with several U.S. pharmaceutical companies. YSP will also administer and manage the new pharmaceutical manufacturing facility currently under construction at Shaklee Corporation's Norman plant site in Oklahoma. The facility is scheduled for completion in summer 1998.

With the completion of the Yamanouchi Shaklee Pharma Research Center, Yamanouchi has taken another significant stride in the development of its U.S. pharmaceutical business.

(1)Yamanouchi Shaklee Pharma Research Center
Address: 1050 Arastradero Road
Stanford Research Par
Palo Alto, California 94025
(2) Shaklee Corporation
Established: 1956 (acquired by Yamanouchi Group in 1989)
Location: San Francisco, CA
Number of employees: approx. 2,000
Principal businesses: manufacture and marketing of nutritional supplements, household products, personal care products, foods, and cut flowers; consigned production of pharmaceutical; etc.
Marketing bases: U.S., Canada, Mexico, Argentina, Malaysia, Singapore, Taiwan, Philippines
Research centers: Hayward, CA; Palo Alto, CA
Production facility: Norman, OK