We announce that at the meeting of the Board of Directors held on November 18, 2005, KYORIN Pharmaceutical Co., Ltd. ("Kyorin-Pharm") passed a resolution to become, as of March 10, 2006, a wholly owned subsidiary, through a share exchange, of APRI Co., Ltd.

("APRI," which plans to change its trade name to KYORIN Co., Ltd. on January 18, 2006) and Kyorin-Pharm signed the share exchange agreement with APRI as of November 18, 2005.

In connection with the transition to a holding-company structure through the share exchange, we will reorganize our businesses of group companies under the structure where KYORIN Co., Ltd. ("New Kyorin") will be a pure holding company.

Notice of Group Reorganization in association with Transition to Holding-Company Structure through Share Exchange