We hereby inform you that TRANS GENIC INC. (Head Office: Mashiki-machi, Kamimashiki-gun, Kumamoto, CEO: Masahiro Koreishi) has launched our new Knockout Mouse business model operation, which is to license individual Gene Knockout mice to a researcher, and has successfully concluded the first license agreement.

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. has concluded exclusive agreements with Yamanouchi Pharmaceutical Co., Ltd. and Sumitomo Chemical Co., Ltd., and has concluded non-exclusive agreements with six major pharmaceutical companies to date, since starting disclosure of the information last October.

From April 2004, we have constructed an additional business model for selling the Knockout Mouse information, which was not chosen by the companies above, individually to academic researchers for their basic researches at universities and research institutes. We are proud to announce that on May 18, 2004 we concluded a license agreement with Professor Senya Matsufuji, M.D. from the Jikei University School of Medicine, Department of Biochemistry tt, for the first time for this business model. Dr. Senya Matsufuji studies Biochemistry, especially focusing on antizyme physiology and its translational frameshifting regulation.

We believe that the launching this new business model will improve our business performance, as we can now make more effective use of the information data obtained from our Knockout mice. In addition, being a university-born venture company, we believe that this business will make a contribution to expanding basic researches at universities.90

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