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Date Posted: 19:42:21 09/19/06 Tue
Author: Message To Shareholders (President&CEO-Dr.YuzuruMatsuda)
Subject: Message From The President
In reply to: We Act Under The Slogan, "Take Pride in Compliance!" 's message, "Guidelines of Action for Compliance" on 19:33:57 09/19/06 Tue

Our mission: contribute to the health and well-being of people worldwide by developing bold new biotechnologies

The 21st century has been called the century of the genome and the life sciences. For Kyowa Hakko, which has utilized new biotechnology to achieve growth on a foundation of fermentation technology, the future holds tremendous opportunity. We will continue to do our utmost to “contribute to the health and well-being of people worldwide as an innovative, R&D-based company that has earned a position of global leadership.”

Currently, the business environment in each of our areas of operation is changing dramatically on a global scale. To bolster our growth potential through the utilization of a common technical foundation and to make full use of our distinctive strengths in each operational field, in April 2005 we made a new start as an operating holding company. Our Chemical and Food operations have been separated into independent subsidiaries - Kyowa Hakko Chemical Co., Ltd., and Kyowa Hakko Food Specialties Co., Ltd. These subsidiaries will work to meet customer needs more accurately and rapidly, to make decisions more rapidly, and to bolster their competitiveness. The new Kyowa Hakko, centered on its core Pharmaceuticals and Bio-Chemicals operations, will leverage the synergies between these two fields and, on a base of biotechnology, work to achieve growth and development as a life sciences company with strengths that are not found in specialized pharmaceuticals companies.

We are making steady progress with overseas development activities, such as those for KW-6002, a treatment for Parkinsonfs disease, and with discovery research in the fields of cancer, the central nervous system, and allergies. Our biopharmaceuticals operations, which are based on a core of original technology that dramatically increases antibody activation, have gotten off to an excellent start. We have also begun new development activities in the field of biochemical products that contribute to medicine and health. Examples of these products include orinithine and other amino acids, which have drawn increased attention in recent years, and dipeptides, which could be called the next generation of amino acids. With a global, cooperative system that extends to tie-ups with other companies that have strengths that complement ours, a start-up company spirit, and a strong desire to commercialize new businesses, we will strive to rapidly enhance our operations.

In these ways, Kyowa Hakko will endeavor to “create new value and contribute to the health and comfort of people around the globe as the world’s number one fermentation-technology based biotechnology company.”

In the future, we will work to meet the expectations of society with regard to the environment, safety, and business ethics, and we will strive to achieve highly transparent management practices. As we do our utmost to achieve a “second founding” of the company, I would like to ask for your continued support


April 2005

President and Chief Executive Officer
Dr. Yuzuru Matsuda





Website - http://www.kyowa.co.jp/eng/prtext/message.htm

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