News Release

Kyowa Hakko Bio Announces Establishment of a Subsidiary and a New Amino Acid Manufacturing Plant in Thailand

October 26, 2012

Tokyo, Japan, October 26, 2012 --- Kyowa Hakko Bio Co., Ltd. (Chiyoda-ku, Tokyo, CEO: Shuichi Ishino, "Kyowa Hakko Bio"), has decided to establish a subsidiary in Thailand, and to set up a manufacturing plant for amino acids in that country.

The market for amino acids has expanded rapidly in recent years, due to growth worldwide in the pharmaceutical, medical and healthcare markets, and this trend is expected to continue in future. The amino acid market in the Asian region in particular is growing rapidly, related to the Westernization of lifestyle, as well as population growth and economic development. Based on the projected increase in demand, Kyowa Hakko Bio intends to establish a production site in Thailand, with introduction of the most up-to-date manufacturing technology, to complement its existing production sites in Japan, China and the USA. The aim is to further strengthen Kyowa Hakko Bio's commercial activities with respect to amino acids, by providing stable supply, based on high-quality production through the use of advanced technology and best-practice management techniques, and also by having multiple production sites, resulting in increased satisfaction and reliability for our customers.

Kyowa Hakko Bio, as a member of the Kyowa Hakko Kirin Group, is well positioned in the manufacture and marketing of amino acids for use in infusion feeding, bulk drugs, medical foods, health foods, cosmetics, etc., for the pharmaceutical, medical and healthcare markets, as a central part of its business activities, and will expand these activities globally.

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1. Outline of proposed new Thai subsidiary
Establishment date November 2012
President Susumu Shibata
Capital 2 billion baht (approx. ¥5.1 billion)
Shareholder composition 100% held by Kyowa Hakko Bio (including holdings of affiliated companies)

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2. Summary of plans for new amino acid plant
Plant location Rayong Province, Thailand
Yearly production 2200 tons
Production start date Second half of 2015
Total investment Approx. ¥8.1 billion, including costs of land, plant construction, and opening
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