The text starts here.

News Release

FOR IMMEDIATE RELEASE
October 2, 1998

Notice of Valuation Loss on Listed Marketable Securities and Business Results Forecast Revision

NOTICE October 2, 1998
Listed Stock Name: Eisai Co., Ltd.
Head Office Location: 4-6-10 Koishikawa Bunkyo-ku, Tokyo
Code: 4523
Listed Locations: First Sections of the Tokyo Stock Exchange & the Osaka Securities Exchange
Inquiries: Mr. Tai Shimizu, Board Member,
Director General Affairs Division

Notice of Valuation Loss on Listed Marketable Securities and
Business Results Forecast Revision

I. Valuation Loss on Listed Marketable Securities for the Interim Term of the Fiscal Year ending March 1999

Eisai, hereafter referred to as the "Company," adopts the lower of cost or market method for listed marketable securities. The listed marketable securities valuation loss of the interim term for the fiscal year ending March 1999 is noted in the table below.

Unit: Yen Millions, %percent
(A) Interim Term for the Year Ending March 1999
       Listed Marketable Securities Valuation Loss Amount (9-30-98)

yen9,050
(B) Year Ended March 1998Total Assets
(A/B x 100)
yen412,320
(2.2%percent)
(C) Year Ended March 1998Ordinary Income
(A/C x 100)
yen45,259
(20.0%percent)
(D) Year Ended March 1998Net Income
(A/D x 100)
yen24,166
(37.4%percent)

(For Reference Purposes)
1. The business year of the Company ends on March 31.
2. The lower of cost or market method applies to short-term investments and investment securities.
3. The listed marketable securities valuation loss amount is stated in the non-operating expense accounting category.

II. Business Results (Non-consolidated basis) Forecast Revision for the Interim Term of the Fiscal Year ending March 1999
  Although management has taken significant efforts in face of difficult market conditions, the fall in the stock market and the subsequent increase in the Company's listed securities valuation loss has been a principal factor leading to a revision in the business results forecast for the interim term accounts of the year ending March 1999. (Fiscal term April 1, 1998-September 30, 1998)

Unit: Yen Millions, %percent
  Net Sales Ordinary Income Net Income
May 1998 Forecast(A) yen123,000 yen20,500 yen10,000
Revised Forecast(B) yen115,000 yen12,500 yen5,700
Increase/Decrease(B)-(A) -yen8,000 -yen8,000 -yen4,300
% Increase/Decrease -6.5 %
percent
-39.0 %
percent
-43.0 %
percent