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News Release

FOR IMMEDIATE RELEASE
June 25, 2001

EISAI INTRODUCES A SPECIAL R&D INCENTIVE SYSTEM

Tokyo (June 25, 2001) - Eisai Co., Ltd. of Tokyo (President and CEO: Haruo Naito) announced the introduction of a global special incentive system for research and development contributors. This system is applicable for personnel who have contributed to the creation of new drugs and consists of incentives such as stock options, etc., and is expected to promote corporate value and to serve as a motive for researchers involved in global drug research activities.


The special incentive system is composed of three types of incentives: Development Decision (Phase 2b) Incentive, New Drug Approval Incentive, and Sales-based Incentive. These incentives are applicable for researchers based on their contributions as most valuable contributors, major contributors and commendable contributors. Research Development Decision (Phase 2b) and NDA Approval Incentive will be provided as stock options to those recognized as the respective contributors to creation of a new product theme and new drug application and approval in order to promote contributions to corporate value in the future. The Sales-based Incentive will be provided to the respective contributors to the processes from the creation of a new drug concept through approval, applicable to new products launched in and after 1996. The amount of this incentive will be 0.05 percent of aggregated sales during 5 fiscal years of product introduction. Eligible persons will include those who are currently in global R&D areas and those in related areas as well as those who previously made commendable contributions to the applicable projects but are presently assigned to other areas. The provision of stock options will be limited to personnel of Eisai Co., Ltd. in accordance with the Japanese commercial law regarding stock options.


In addition, a "System for Remuneration for an Employee's Invention" was introduced in 1996 in response to the Japanese Patent Law Article 35. "The System of Remuneration for an Employee's Invention" has been revised and under the new revision remuneration up to yen50 million per patent is allowed. The special R&D incentive system functions in conjunction with the employee invention remuneration system.


Eisai Co., Ltd. is a research-based human health care company which discovers, develops and markets products in more than 30 countries. Through a global network of research facilities, manufacturing sites and marketing subsidiaries, Eisai actively participates in all aspects of the worldwide health care system. The Company reported sales of $2.9 billion in fiscal 2000 with approximately 14 percent of sales spent for research and development.