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Conclsion of Co-research Contact with ActivX BIosciences,Inc.

June 4, 2002

On May 31, Kyorin Pharmaceutical Co., Ltd. (head office: Tokyo, president: Ikuo Ogihara) concluded the contract agreement with ActivX Biosciences, Inc. (head office: California, president & CEO: John W. Kozarich), a US bio- venture company for jointly conducting an exploratory research of lead compounds of Type II diabetes therapy.

Under the 3-year co-research contract, Kyorin and ActivX will jointly engage in exploratory researches of new drug discovery targets for the discovery and production of Type II diabetes therapy drugs acting under a new mechanism or new site of action.

Kyorin has obtained the right to exclusively and globally commercialize the achievements of the co-research conducted under the contract.

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