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News Release

April 9, 1996

Eisai Establishes Elmed Eisai Co., Ltd. Selling "Value Generics"

April 9, 1996 -- Eisai Co., Ltd. of Tokyo (President and Chief Executive Officer: Haruo Naito) announced today the establishment of Elmed Eisai Co., Ltd., a 100 percent subsidiary, concentrating on the marketing of generic products which can be distinguished from normal "me-too drugs" to the elderly population. Elmed Eisai (President: Noriyuki Nakanishi) is located in Tokyo with a capitalization of 80 million yen and 40 employees.

Corresponding to Eisai's objective of being a Human Health Care Company, Elmed Eisai will focus on principally providing "Value Generics", in the initial stages, to health care facilities operating under the "flat-sum reimbursement system."

Elmed Eisai's "Value Generics" will offer advantages over normal "me-too drugs" in three principal areas: formulation, information and economic value. In the area of formulation, "Value Generics" will provide benefits such as quick dissolution and flavorings that mask bitter taste, making drugs easier for the elderly to take. With respect to information, in addition to the specialized information provided by Medical Representatives, Elmed Eisai plans to develop an "on-line communication network" for appropriate and timely information dissemination to medical institutions. "Value Generics" will also provide economic benefits. These products will be priced at an affordably low cost given the quality and service level and be readily available to patients and health care facilities.

The R&D of "Value Generics" is a joint undertaking of Eisai Co., Ltd. and Sansho Co., Ltd. (an Eisai subsidiary). Sansho will be the principal producer of "Value Generics". The project is expected to begin operations in the summer of 1997.

With the launch of Elmed Eisai and the production of "Value Generics", Eisai will utilize its experience and skills gained in brand product marketing to further our mission as a R&D oriented company in generic product marketing in Japan.

Eisai Co., Ltd. is a research-based human health care company which discovers, develops and markets products in more than 30 countries. Through its global network of research facilities, manufacturing sites and marketing subsidiaries, Eisai actively participates in all aspects of the worldwide health care systems. The company reported sales of over $2.9 billion in fiscal year 1994 with approximately 14 percent of sales spent for research and development.