We hereby inform you that TRANS GENIC INC. (Head Office: Mashiki-machi, Kamimashiki-gun, Kumamoto, CEO: Masahiro Koreishi) concluded the agreement on "non-exclusive information disclosure regarding gene functions obtained from Knockout mice" on February 2, 2004 with Sankyo Co., Ltd. (Headquarters: Chuo-ku, Tokyo, President and Representative Director: Takashi Shoda)

We produce Knockout mice and provide information on gene functions as our core business . We have formulated two frameworks of disclosure regarding gene functions obtained from the Knockout mice that we produce; one is exclusive, and the other is non-exclusive. TRANS GENIC INC. concluded the exclusive agreements with Yamanouchi Pharmaceutical Co., Ltd. and Sumitomo Chemical Co., Ltd.. Our business has been making good progress toward disclosure of gene structure information, and also phenotype analysis information. Further, we have achieved positive results toward the license of consecutive rights of use of each strain of the mice. TRANS GENIC INC. has been disclosing information non-exclusively since October 2003, and we have since concluded an agreement with Sankyo Co., Ltd.. This would be the second agreement regarding our right to non-exclusive use.

We believe that this latest conclusion of the agreement will improve our business performance, as we can now make more effective use of the information data obtained from our Knockout mice. In addition, we are considering the conclusion of the non-exclusive rights of use with additional companies.

At the present moment, any effect that this agreement may bring is unknown.