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News Release

FOR IMMEDIATE RELEASE
May 17, 2001

Notice on Providing Stock Options in the Form of New Stock Issuance
("New Stock Issuance for Stock Option as stipulated by Commercial Law 280-19)


Listed Stock Name: Eisai Co., Ltd.
Head Office Location: 4-6-10 Koishikawa Bunkyo-ku, Tokyo
President and CEO: Mr. Haruo Naito
Code: 4523
Listed Locations: First Sections of the Tokyo Stock Exchange & the Osaka Securities Exchange
Inquiries: Mr. Isao Okabayashi
Member, Board of Directors & Corporate Officer
In Charge of Public Relations & Legal Affairs
Phone 81-3-3817-5190


Notice on Providing Stock Options in the Form of New Stock Issuance
("New Stock Issuance for Stock Option as stipulated by Commercial Law 280-19)
At the Board of Directors' Meeting held on May 17, 2001, the Company decided on the following in terms of provision of stock options to the Board of Directors and other applicable persons.

1. Reasons for Implementation of a Stock Option System
The Company decided to implement a Stock Option system to serve as an incentive and motivation to the Board of Directors and other applicable persons to increase corporate value.
2. Names of Persons to receive Stock Options and number of issuance of New Stock for Stock Options.
The Company's seven (7) Board of Directors members will be allocated a maximum of 62,000 new stocks and 35 other applicable persons in the Company will be allocated a maximum of 118,000 new stocks. (The names of eligible persons and applicable stocks to each person are noted in a separate table in this document.)
After the date of the option grant, in the event that a stock split or a consolidation of stocks occurs, an adjustment in stocks options granted will be made in accordance with the rate of stock split or stock consolidation.
In addition, after the date of the stock option grant, in the event the Company merges or consolidates with another company, the number of stocks granted will be adjusted as deemed necessary.
3. Type of Stock Applicable for Stock Option
Common Stock
4. Stock Option Exercise Price
The Stock Option Exercise price of the newly issued stock for the purpose of the stock option is determined by the average of the closing prices of the Company's common stock in the previous month in which the option is granted excluding non-trading days on the Tokyo Stock Exchange with numbers less than one (1) yen being rounded up. However, if the average of the closing prices in the previous month to the stock option grant is lower than the closing price on the grant date, the exercise stock price will be the closing price on the grant date.
After the date of the option grant, in the event of a stock split or stock consolidation, the stock option grant number will be adjusted according to the percentage change with amounts of less than 1 yen being rounded up.
In addition, after stock option grant, if the Company issues new stocks at the price less than the current price on the market (excluding new stock issuance for convertible bonds redemption, warrants with pre-emptive rights and the application of the Commercial Law 280-19), the exercise price will be adjusted with amounts of less than one (1) yen being rounded up.
Moreover, after the stock option grant, if the Company merges or consolidates with another company, the stocks option exercise price will be adjusted as deemed necessary.
5. Stock Option Exercise Term
From September 3, 2001 to June 28, 2011.
6. Stock Option Exercise Conditions
  (1) Stock Options can be exercised by the persons granted options even after they no longer have positions as Board of Directors or applicable persons in the Company. In the event of the death of the person authorized to exercise the stock option, the legally designated heir may exercise the option. However, the conditions stipulated in the stock option agreement (3) below concerning will be applicable.
  (2) The person granted the stock option may not assign or dispose, etc. of the options to a third person or party.
  (3) Other conditions concerning stock option rights will be subject to a stock option agreement which will be entered between the Company and the applicable person eligible for stock options based on the decisions of the General Shareholders' Meeting and the Board of Directors' Meeting both to be held on June 28, 2001.


Notes:The contents noted above are conditional upon the approval of the issuance of new stock for stock options at the General Shareholders Meeting on June 28, 2001.

Separate Table (Persons Eligible for Stock Options)

7 Board of Directors (62,000 stock shares)

Name Share Number Name Share Number
Yuji Naito 16,000 shares Hideaki Matsui 5,000 shares
Haruo Naito 16,000 shares Yoji Takaoka 5,000 shares
Hiromasa Nakai 9,000 shares Yasuhiro Mita 5,000 shares
Aishin Shinoda 6,000 shares

Applicable 35 Persons (118,000 stock shares)

Name Share Number Name Share Number
Tadashi Nakai 5,000 shares Shigeru Saito 3,000 shares
Hiroshi Yamauchi 4,000 shares Akio Tsuri 3,000 shares
Matsuo Ohara 4,000 shares Mayumi Watanabe 3,000 shares
Kenji Toda 4,000 shares Ryoichi Watanabe 3,000 shares
Akiyoshi Uchiyama 4,000 shares Yutaka Yoshida 3,000 shares
Makoto Shiina 4,000 shares Toshio Arai 3,000 shares
Masao Jimbo 4,000 shares Etsuo Maki 3,000 shares
Kozaburo Inoue 4,000 shares Naoki Asakawa 3,000 shares
Hideaki Hayano 4,000 shares Yoshiharu Yamanishi 3,000 shares
Shintaro Kataoka 4,000 shares Kenji Hanawa 3,000 shares
Nobuo Deguchi 4,000 shares Shigeru Soda 3,000 shares
Hiroyuki Mitsui 4,000 shares Norio Kano 3,000 shares
Koichi Katayama 3,000 shares Hiroshi Yoshino 3,000 shares
Hachiro Sugimoto 3,000 shares Kentaro Yoshimatsu 3,000 shares
Toshiro Komura 3,000 shares Kazuo Tsukidate 3,000 shares
Hiroshi Kimura 3,000 shares Takeshi Nagasu 3,000 shares
Toshiyuki Gomi 3,000 shares Edward Stewart Geary 3,000 shares
Akira Shiga 3,000 shares