We hereby inform you that TRANS GENIC INC.(HO: Mashiki-gun, Kumamoto, CEO: Masahiro Koreishi) has agreed on a JPY 700 million commitment-line contract on May 18, 2004 with The Bank of Tokyo-Mitsubishi, Ltd.( HO: Chiyoda-ku, Tokyo, President: Shigemitsu Miki) and The Kumamoto Family Bank, Ltd., (HO: Kumamoto, President: Fukashi Ikemitsu) and will enter into the contract on May 31, 2004.

1. Purpose of the agreement
A commitment-line is a scheme with which companies can borrow money any time up to a predetermined amount. Under this agreement, we are able to obtain enough running funds, and it enables us to operate the business much more positively while gaining high maneuverability and stability for fund-raising.
We believe that this agreement also brings another merit for us; with that TRANS GENIC INC. can win the confidence of our shareholders and customers.

2. Outline of the contract
t_ Amount of financing commitment: \ 700 million
t` Date of the commitment: May 31, 2004
ta Term of the contract: May 31, 2004 thru May 27, 2005
tb Arranger: The Bank of Tokyo-Mitsubishi, Ltd.
tc Agent: The Bank of Tokyo-Mitsubishi, Ltd.
td Participating financial institutions: The Bank of Tokyo-Mitsubishi, Ltd.
                                                The Kumamoto Family Bank, Ltd.